RILY is now undervalued and could go up 1150%
B. Riley Financial, headquartered in Los Angeles, provides diverse financial services, including investment banking and wealth management, and employs 2,383 people since its IPO in 2009. Its segments include Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, and Consumer Products.
Based on our analysis, B. Riley Financial has received an undervalued rating of 5 out of 5 stars from Cashu due to several key financial ratios that indicate significant potential for improvement and growth.
The company's Price-to-Book (PB) ratio stands at 2.21, which is above the sector average of 1.07. This suggests that the market may be undervaluing the company's assets relative to its stock price, indicating a possible opportunity for investors. Furthermore, B. Riley's net profit margin is at -6.62, significantly lower than the sector average of 18.12. While negative margins are concerning, they may reflect challenges that, if addressed, could lead to improved profitability in the future.
B. Riley's Return on Equity (ROE) ratio is at -34.32, in stark contrast to the sector average of 8.04. This negative figure indicates that the company is currently not generating profits from its equity investments, yet a turnaround could unlock substantial value. Notably, the dividend yield is exceptionally high at 79.38, compared to the sector average of 2.99. This suggests that the company is committed to returning value to its shareholders, even amidst current financial challenges.
Lastly, B. Riley's Return on Assets (ROA) ratio is -1.64, versus the sector average of 0.83, indicating that the company is not effectively utilizing its assets to generate income, which presents a potential area of improvement.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.