DigitalBridge Group Inc. (DBRG)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.14, providing financial flexibility
• Superior net profit margin of 53.6% indicating pricing power and operational efficiency

Concerns

• Revenue declining at 25.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of -0.8 places it in the financial distress zone—elevated bankruptcy risk
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

DigitalBridge Group Inc. is a small-cap financial services company valued at $2.9 billion. The business generates $94 million in annual revenue with a 53.6% net margin. From a quality standpoint, DigitalBridge shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of -0.8 warrants caution. On valuation, the stock is trading at a premium 32.5x earnings, with trades above its Graham Number with a negative 40% margin. Growth dynamics show revenue growing at -25.8% and profit growth of 1388.0%. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer