RILY Stock Intrinsic Value – B. RILEY FINANCIAL Reports Third Quarter FY2023 Earnings Results for September 30, 2023
December 17, 2023
🌥️Earnings Overview
B. RILEY FINANCIAL ($NASDAQ:RILY) reported its earnings results for the third quarter of FY2023 ending on September 30 2023 with total revenue increasing by 44.1% year-over-year to USD 472.9 million; however, net income decreased from USD 47.8 million in the same quarter of the previous year to USD -73.8 million.
Stock Price
The stock opened at $31.8 and closed at $30.6, representing a drop of 12.1% from the previous day’s closing price of $34.8. This decline came despite the company’s positive financial results, with revenue and net income both rising compared to the same period last year. As a result of the strong earnings report, B. RILEY FINANCIAL’s share price dropped significantly at the close of trading. Investors may have been expecting an even larger increase in profits from the company’s cost-cutting efforts due to the pandemic.
Additionally, many investors may be wary of investing in the stock amid the continuing market uncertainty caused by the pandemic. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RILY. More…
| Total Revenues | Net Income | Net Margin |
| 1.66k | -75.78 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RILY. More…
| Operations | Investing | Financing |
| 38.51 | 238.92 | -259 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RILY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.14k | 5.68k | 13.53 |
Key Ratios Snapshot
Some of the financial key ratios for RILY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.4% | -5.6% | 5.8% |
| FCF Margin | ROE | ROA |
| 1.8% | 14.6% | 1.0% |
Analysis – RILY Stock Intrinsic Value
GoodWhale has conducted a financial analysis of B. RILEY FINANCIAL. Our proprietary Valuation Line has determined that the intrinsic value of B. RILEY FINANCIAL share is approximately $61.5. At the current market price of $30.6, we see that B. RILEY FINANCIAL shares are undervalued by 50.2%. This offers an attractive opportunity for investors looking for an undervalued stock with good potential. More…
Peers
The company operates through the following segments: Capital Markets, Auction and Liquidation, Valuation and Appraisal, and Principal Investing. It offers its services to middle market public and private companies, institutional investors, and high net worth individuals. The company was founded on November 10, 2009 and is headquartered in Los Angeles, CA.
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Summary
B. Riley Financial has reported its earnings results for the third quarter of FY2023, ending on September 30 2023. Total revenue saw an impressive 44.1% year-over-year increase to USD 472.9 million, however net income decreased sharply to USD -73.8 million, a significant decrease from the USD 47.8 million reported in the same quarter of the previous year. Despite the high revenue growth, investors reacted negatively, as the stock price moved down on the same day. When assessing this company as an investment, investors should consider the potential negatives of high depreciation, as well as the positives of strong revenue growth, in order to make an informed decision.
