BRC Group Holdings Inc. Depositary Shares each representing 1/1000th in a share of 7.375% Series B Cumulative Perpetual Preferred Stock par value $0.0001 (RILYL)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a preferred depositary share, my first question is not the common stock multiple but whether BRC Group Holdings can keep paying the 7.375% cumulative dividend. The filed numbers show a genuine but uneven turnaround: in fiscal FY2025, the year ended 2025-12-31, net income was $307.4M and diluted EPS was $9.80, after a fiscal FY2024 loss of $764.3M and a fiscal FY2023 loss of $99.9M. That is why the FairStock Lynch category is TURNAROUND. But the path is not smooth: in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $213.3M and diluted EPS was $6.57, yet in fiscal Q2 2026, the quarter ended 2026-06-30, net income fell to $20.5M and diluted EPS to $0.45. Revenue has also shrunk from $1.1B in FY2023 to $986.0M in FY2024 and $789.0M in FY2025. The business is a financial conglomerate with capital markets, brokerage and direct lending operations; I see little durable moat, only cyclical talent and balance-sheet risk. Leverage is high, with D/E of 7.52, and the Piotroski F-Score of 2/9 is weak. FairStock calculates ROCE of 24.57%, a P/E of 1.61 and P/B of 2.73 at the 2026-10-13 close. A P/E near 1.6 looks cheap, but a P/B of 2.73 is not cheap for a financial whose earnings are this volatile. ROE is N/A, and bank-specific CET1, NIM and combined ratio are not in the data. The data also lists a 0.00% dividend yield despite the 7.375% coupon, a discrepancy I would need resolved before trusting the income stream.

In plain English: BRC Group Holdings is a financial-services company that does investment banking, brokerage, lending and trading. It has gone from losses to profits, but the results swing wildly and it uses a lot of borrowed money. The price looks low compared with recent reported earnings, but the safety checks look weak, so it is cheap only if those profits last.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer