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ZYBERNO

Stock Report

Updated Aug 25, 2026

BRC Group Holdings, Inc. (RILYG)

Financial Services • NASDAQ

$24.64

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

43.0/100

WEAK BUSINESS

BRC Group Holdings, Inc. (RILYG) scores 43/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full RILYG quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-5.5%

Slight Overestimate

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full RILYG valuation analysis · → View full RILYG Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):NEUTRAL (39,083.2%)

Debt-to-Equity (Solvency Risk):GOOD (0.48x)

Operating Margin (Operational Efficiency):EXCELLENT (27.7%)

Return on Capital (Capital Efficiency):NEUTRAL (266.3%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

BRC Group Holdings, Inc. (RILYG) stock report — Zyberno Score 43/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, BRC Group Holdings, Inc. (RILYG) shows a Brina Gap of -5.5%, which weakens the case: based on the company's ROIC (266.3%) and reinvestment rate (-9.6%), the business can fundamentally grow at -25.5% — but the current enterprise value implies the market expects -20.0%.

Over the trailing twelve months, RILYG generated -$27.45M in Owner Earnings. Capital was deployed as follows: $5.63M invested in capital expenditures. Reinvestment rate: -9.6%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:24.64

Market Cap:$301.90M

Valuation Multiples (4)

P/E Ratio:

1.94x

📊 Click to view full RILYG P/E analysis →

P/B Ratio:1.50x

P/S Ratio:0.26x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$194.10M

Ev Ebitda Ratio:0.55x

Price Action & Momentum (2)

12-1 Momentum:

+38.7% (94th pctile)

📈 Click to view full RILYG Momentum analysis →

Momentum Percentile:94 / 100

B. Profitability Assessment

Return Metrics (7)

ROE:

39,083.2%

📊 Click to view full RILYG ROE analysis →

ROA:22.9%

Roic:

266.3%

📊 Click to view full RILYG ROIC analysis →

Reinvestment Rate:-9.6%

Fundamental Growth Rate (g):-25.5%

Market-Implied Growth Rate:-20.0%

Brina Gap:

-5.5%

☷ Click to view full RILYG Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:27.7%

Net Margin Ttm:35.9%

Ebitda Margin:30.5%

TTM Performance (3)

Gross Margin Ttm:88.0%

Operating Margin Ttm:27.7%

Net Margin Ttm:35.9%

Yield Metrics (2)

Earnings Yield:$51.58

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.54

📊 Click to view full RILYG Earnings Surprise analysis →

EPS Surprise vs Expected:-90.7%

Latest Earnings Filed:2026-08-06

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-13.7%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):29.9%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-17.8%

Operating Cash Flow Growth Rate (Linear):-44.2%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):13.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.09x

Quick Ratio:0.06x

Cash Ratio:0.09x

Leverage Analysis (3)

Debt To Equity Ttm:0.48x

Debt-to-Equity Ratio:0.48x

Debt To Ebitda:0.13x

Coverage Ratios (2)

Interest Coverage Ratio:3.00x

Times Interest Earned:3.00

Capital Structure (4)

Working Capital:-1,612,191,000.00

Cash And Cash Equivalents:154,112,000.00

Long Term Debt:$46.31M

Net Debt:-$107.81M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.15B

Linear Growth: -13.7%

📊 Click to view full RILYG Revenue analysis & methodology →

Cost Of Revenue Ttm:$137.24M

Profitability Breakdown (2)

Gross profit TTM: $1.01B

Linear Growth: -9.6%

📊 Click to view full RILYG Gross Profit analysis & methodology →

Operating income TTM: $317.37M

Linear Growth: 13.0%

📊 Click to view full RILYG Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $411.74M

Linear Growth: 29.9%

📊 Click to view full RILYG Net Income analysis & methodology →

Income Before Tax:$444.42M

Ebitda Ttm:350,039,000.00

Operating Expenses (5)

Operating Expenses:830,045,000.00

R And D Expense:0.00

Sga Expense:557,716,000.00

Income Tax Expense:$12.95M

Interest Expense:76,630,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:233.2%

Ebitda Margin:30.5%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.97B

Current Assets:$154.11M

Ppe Net:17,850,000.00

Goodwill:392,687,000.00

Intangible Assets:$101.87M

Liability Structure (4)

Total Liabilities:1,766,303,000.00

Current Liabilities:1,766,303,000.00

Long Term Debt:$46.31M

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$201.24M

Retained Earnings:-$529.46M

Common Stock:100,000,000.00

Working Capital Items (3)

Accounts Receivable:61,382,000.00

Inventory:47,203,000.00

Accounts Payable:35,475,000.00

Special Items (2)

Contract Liabilities:46,985,000.00

Stock Based Compensation:2,440,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$21.82M

Linear Growth: -44.2%

Free cash flow TTM: -$27.45M

Linear Growth: -17.8%

📊 Click to view full RILYG Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$8.33M

Capital Expenditures Ttm:5,631,000.00

Financing Activities (3)

Financing Cash Flow:-$96.79M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:32,673,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):12.80

Eps diluted TTM: $12.71

Linear Growth: 25.3%

📊 Click to view full RILYG EPS analysis & methodology →

Earnings Per Share Ttm:$33.60

Revenue & Cash Per Share (2)

Sales Per Share Ttm:93.65

Operating Cash Flow Per Share:-$4.87

Book Value & Capital (2)

Book Value Per Share:$16.42

Cash Per Share:12.58

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.64x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:18.69x

Days Sales Outstanding Ttm:19.53

Inventory Management (2)

Inventory Turnover Ttm:2.91x

Days Inventory Outstanding Ttm:125.54

Payables & Cash Cycle (2)

Days Payable Outstanding:94.35

Cash Conversion Cycle:50.72

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:60.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$27.45M

Damodaran Growth Analysis (4)

Reinvestment Rate:-9.6%

Fundamental Growth Rate (g):-25.5%

Market-Implied Growth Rate:-20.0%

Brina Gap:

-5.5%

☷ Click to view full RILYG Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-13.7%

Net Income Growth Rate (Linear):29.9%

Operating Income Growth Rate (Linear):13.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-17.8%

Operating Cash Flow Growth Rate (Linear):-44.2%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-9.6%

Book Value Growth Rate (Linear):-28.4%

C. Company Profile & Context

Corporate Information (6)

Symbol:RILYG

Company Name:BRC Group Holdings, Inc.

Sector:Financial Services

Industry:Asset Management

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:12.25M

Shares Outstanding Basic:37.81M

Shares Outstanding Diluted:38.42M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-25 19:08:20 UTC

Data Timestamp:2026-08-25T19:08:20.324652