Does BRT Apartments Generate Enough Profit?

Does small-cap Residential Real Estate Investment Trust company BRT Apartments have a sustainably profitable business model? By studying its gross margins and comparing them to its operating margins, we can gain insight into quality of its business. With gross margins at 56.2%, you might be telling yourself the BRT Apartments is profitable -- but there is more to the story.

Date Reported Revenue ($) Cost of Revenue ($) Gross Margins (%) YoY Growth (%)
2021-12-31 32,449,000.0 14,202,000.0 56.23 27.97
2020-12-31 22,078,000.0 12,377,000.0 43.94 26.01
2019-12-31 18,935,000.0 12,332,000.0 34.87 -16.36
2018-12-31 18,341,000.0 10,695,000.0 41.69 n/a
Date Reported Total Revenue ($) Operating Expenses ($) Operating Margins (%) YoY Growth (%)
2021-12-31 32,449,000.0 34,848,000.0 -7.39 81.34
2020-12-31 22,078,000.0 30,820,000.0 -39.6 20.26
2019-12-31 18,935,000.0 28,339,000.0 -49.66 -36.69
2018-12-31 18,341,000.0 25,005,000.0 -36.33 n/a

Despite its strong top line growth, BRT Apartments is struggling to break even because of its fixed costs of operations. One bright spot, however, is that operating margins are growing at an average yearly rate of 21.6%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.