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ZYBERNO

Stock Report

Updated Jun 11, 2026

BRC Group Holdings, Inc. (RILYK)

Financial Services • NASDAQ

$25.23

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

41.0/100

WEAK BUSINESS

BRC Group Holdings, Inc. (RILYK) scores 41/100 — 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 RILYK 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?

-1,035.2%

Market Overestimates

💰 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 RILYK valuation analysis · → View full RILYK 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 (389.2%)

Debt-to-Equity (Solvency Risk):AVERAGE (0.65x)

Operating Margin (Operational Efficiency):EXCELLENT (31.2%)

Return on Capital (Capital Efficiency):NEUTRAL (14,546.8%)

📊 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. (RILYK) stock report — Zyberno Score 41/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, BRC Group Holdings, Inc. (RILYK) shows a Brina Gap of -1,035.2%, which weakens the case: based on the company's ROIC (14,546.8%) and reinvestment rate (-7.3%), the business can fundamentally grow at -1,055.2% — but the current enterprise value implies the market expects -20.0%.

Over the trailing twelve months, RILYK generated -$27.45M in Owner Earnings. Capital was deployed as follows: $5.63M invested in capital expenditures. Reinvestment rate: -7.3%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:25.23

Market Cap:$805.24M

Valuation Multiples (4)

P/E Ratio:

1.51x

📊 Click to view full RILYK P/E analysis →

P/B Ratio:5.91x

P/S Ratio:0.71x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$671.17M

Ev Ebitda Ratio:1.74x

B. Profitability Assessment

Return Metrics (7)

ROE:

389.2%

📊 Click to view full RILYK ROE analysis →

ROA:31.3%

Roic:

14,546.8%

📊 Click to view full RILYK ROIC analysis →

Reinvestment Rate:-7.3%

Fundamental Growth Rate (g):-1,055.2%

Market-Implied Growth Rate:-20.0%

Brina Gap:

-1,035.2%

☷ Click to view full RILYK Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:31.2%

Net Margin Ttm:46.8%

Ebitda Margin:34.1%

TTM Performance (3)

Gross Margin Ttm:87.6%

Operating Margin Ttm:31.2%

Net Margin Ttm:46.8%

Yield Metrics (2)

Earnings Yield:$66.43

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.87

📊 Click to view full RILYK Earnings Surprise analysis →

EPS Surprise vs Expected:1,501.6%

Latest Earnings Filed:2026-05-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-8.8%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):58.9%

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):23.3%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.10x

Quick Ratio:0.08x

Cash Ratio:0.10x

Leverage Analysis (3)

Debt To Equity Ttm:0.65x

Debt-to-Equity Ratio:0.65x

Debt To Ebitda:0.11x

Coverage Ratios (2)

Interest Coverage Ratio:2.78x

Times Interest Earned:2.78

Capital Structure (4)

Working Capital:-1,542,058,000.00

Cash And Cash Equivalents:175,823,000.00

Long Term Debt:$41.75M

Net Debt:-$134.07M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $1.13B

Linear Growth: -8.8%

📊 Click to view full RILYK Revenue analysis & methodology →

Cost Of Revenue Ttm:$141.00M

Profitability Breakdown (2)

Gross profit TTM: $992.60M

Linear Growth: -7.6%

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

Operating income TTM: $353.91M

Linear Growth: 23.3%

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

Bottom Line Performance (3)

Net income TTM: $530.66M

Linear Growth: 58.9%

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

Income Before Tax:$491.61M

Ebitda Ttm:386,584,000.00

Operating Expenses (5)

Operating Expenses:843,610,000.00

R And D Expense:0.00

Sga Expense:566,708,000.00

Income Tax Expense:$10.05M

Interest Expense:82,566,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:161.0%

Ebitda Margin:34.1%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.85B

Current Assets:$175.82M

Ppe Net:17,608,000.00

Goodwill:392,687,000.00

Intangible Assets:$112.04M

Liability Structure (4)

Total Liabilities:1,717,881,000.00

Current Liabilities:1,717,881,000.00

Long Term Debt:$41.75M

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$136.33M

Retained Earnings:-$550.01M

Common Stock:100,000,000.00

Working Capital Items (3)

Accounts Receivable:67,329,000.00

Inventory:45,572,000.00

Accounts Payable:37,721,000.00

Special Items (2)

Contract Liabilities:48,730,000.00

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 RILYK 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):16.81

Eps diluted TTM: $16.76

Linear Growth: 59.0%

📊 Click to view full RILYK EPS analysis & methodology →

Earnings Per Share Ttm:$16.63

Revenue & Cash Per Share (2)

Sales Per Share Ttm:35.52

Operating Cash Flow Per Share:-$1.87

Book Value & Capital (2)

Book Value Per Share:$4.27

Cash Per Share:5.51

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.67x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:16.84x

Days Sales Outstanding Ttm:21.68

Inventory Management (2)

Inventory Turnover Ttm:3.09x

Days Inventory Outstanding Ttm:117.97

Payables & Cash Cycle (2)

Days Payable Outstanding:97.65

Cash Conversion Cycle:42.00

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:55.00

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:-7.3%

Fundamental Growth Rate (g):-1,055.2%

Market-Implied Growth Rate:-20.0%

Brina Gap:

-1,035.2%

☷ Click to view full RILYK Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-8.8%

Net Income Growth Rate (Linear):58.9%

Operating Income Growth Rate (Linear):23.3%

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):-7.6%

Book Value Growth Rate (Linear):-31.6%

C. Company Profile & Context

Corporate Information (6)

Symbol:RILYK

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:31.92M

Shares Outstanding Basic:31.92M

Shares Outstanding Diluted:32.17M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-11 19:49:34 UTC

Data Timestamp:2026-06-11T19:49:34.813863