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 a 5 out of 5 stars undervalued rating from Cashu due to several key financial ratios that indicate significant potential for recovery and growth.
The company's Price-to-Book (PB) ratio stands at 2.21, notably higher than the sector average of 1.12. This suggests that the stock may be trading at a premium relative to its book value. While this might initially seem concerning, it can indicate market confidence in the company's future growth potential.
Additionally, B. Riley Financial's Net Profit Margin is at -6.62, compared to the sector's 18.27. This negative margin highlights current operational inefficiencies, yet it also points to the potential for improvement as management implements corrective measures.
The Return on Equity (ROE) ratio is reported at -34.32, significantly lower than the sector average of 8.04. This negative ROE reflects challenges in generating profit from shareholders' equity. However, it also suggests that if the company can turn its operations around, substantial gains could be realized.
On a more positive note, the Dividend Yield of 41.50 is markedly higher than the sector's 3.30, indicating a strong return relative to the stock price. This high yield can attract income-focused investors and reflects the company’s commitment to returning value to shareholders.
Lastly, the Return on Assets (ROA) ratio is -1.64 versus the sector's 0.88, underscoring current operational struggles but also the potential for significant recovery.
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.
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