BRC Group Holdings Inc. Depositary Shares each representing a 1/1000th fractional interest in a share of Series A Cumulative Perpetual Preferred Stock (RILYP)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a wary value investor, I see BRC Group Holdings as a financial conglomerate with a turnaround story, not a predictable compounder. The filed figures are dramatic: in FY2023 ended 2023-12-31 it lost $99.9 million, in FY2024 ended 2024-12-31 it lost $764.3 million, then in FY2025 ended 2025-12-31 it earned $307.4 million on $789.0 million of revenue. That is why the Lynch category is TURNAROUND: returned to profit after a loss within the last three years. But the quarterly pattern is lumpy. In fiscal Q1 2026 ended 2026-03-31, net income was $213.3 million and diluted EPS $6.57; in fiscal Q2 2026 ended 2026-06-30, net income fell to $20.5 million and EPS to $0.45. The headline valuation calculations from FairStock at the 2026-10-13 close of $9.03 show a P/E of 1.50 and P/B of 2.55, with ROCE of 24.57%. A P/E near 1.5 is only meaningful if the earnings are real and recurring; the 2/9 Piotroski score suggests fragility, and D/E of 7.52 is high leverage for a financial firm. The preferred shares are cumulative, but the provided dividend yield is 0.00%, which is a major uncertainty, and we lack CET1, net interest margin and combined ratio to judge capital and credit safety. The 52-week range of $3.25-$17.52 shows how volatile the market's view has been. I would want consistent earnings, lower leverage, and clear preferred dividend coverage before calling this a safe bargain.

In plain English: BRC Group Holdings is a financial-services company that earns money from brokerage, investment banking, lending and trading around the world. It has swung from large losses to profits, but the profit swings are big and the company uses a lot of borrowed money. At $9.03, the preferred shares look cheap against some reported earnings figures, but the missing dividend in the data and uneven results make the business look risky rather than clearly strong.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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