Company Overview
Manhattan Bridge Capital, Inc. operates as a specialized real estate finance entity that originates, services, and manages a portfolio of first mortgage loans within the United States, offering short-term, secured, and non-banking financing solutions to real estate investors for purposes including acquisition, renovation, rehabilitation, and development. The company functions within the Real Estate sector, specifically classified under the REIT - Mortgage industry, which implies a business model focused on generating income through lending activities rather than direct property ownership. This entity maintains a compact operational scale with a total of 6 employees, reflecting a lean organizational structure typical of specialized finance firms. With a market capitalization of $50.90M and annual revenue of $7.14M, the company's valuation suggests it holds a niche position in the broader real estate finance landscape, where its small employee count contrasts with its significant market cap to indicate high revenue per employee or a premium valuation on its specific loan portfolio assets.
Financial Health
The company reported revenue of $7.14M and net income of $5.29M over the trailing twelve months, while EBITDA is not disclosed in available data, creating a notable gap between gross revenue and net income that reveals an extremely efficient cost structure or potential accounting adjustments regarding interest expenses. Free cash flow is not reported for this period, meaning the company's financial flexibility regarding capital expenditures and operational cash generation cannot be quantified through this specific metric in the current reporting cycle. The firm demonstrates exceptional profitability with a gross margin of 100.0%, an operating margin of 74.2%, and a profit margin of 74.2%, indicating that the company incurs no cost of goods sold and retains the vast majority of its revenue after covering operating expenses. Cash on hand stands at $186,435, which is significantly lower than the total debt of $15.19M, resulting in a debt-to-equity ratio of 35.06 that characterizes the balance sheet as highly leveraged rather than conservative. Despite the high leverage, the current ratio is an exceptionally high 40.17, suggesting that the company possesses substantial current assets relative to its current liabilities, pointing to strong short-term liquidity positions that can easily cover immediate obligations. Return on equity is calculated at 12.2% and return on assets sits at 8.1%, metrics that reveal management is generating returns above the cost of capital but must navigate the risks associated with the company's high debt load to maintain these yield levels.
Valuation Assessment
The trailing twelve-month P/E ratio is 9.47, while the forward P/E is 9.27, and the slight decrease in the forward multiple implies that the market expects earnings to grow marginally or stabilize in the coming period relative to current historical performance. The price-to-book ratio is 1.18, indicating that the market values the company at a modest premium of 18% over its book value, suggesting investors are paying a small amount extra for the quality of its loan portfolio or management team. Alternative valuation metrics include a price-to-sales ratio of 7.13 and an EV/EBITDA that is not available, where the high price-to-sales figure suggests the market places significant value on the company's revenue generation capabilities independent of its earnings per share. The stock has traded between a 52-week low of $4.13 and a 52-week high of $6.05, and without the specific current share price, the exact position relative to this range cannot be calculated, though the beta value of 0.21 indicates that the stock's price volatility is substantially lower than that of the broader market. This low beta suggests the asset may serve as a stabilizing component in a portfolio, moving less than 21% as much as the market in terms of volatility metrics.
Growth & Income
Revenue growth year-over-year is -9.1% and earnings growth year-over-year is -12.4%, indicating that earnings are declining faster than revenue, which implies that the company's profit margins are compressing or that the business is shrinking at an accelerated pace compared to its top-line sales figures. As a dividend payer, the company offers a dividend yield of 9.9% with a payout ratio of 97.9%, a metric that suggests the dividend is nearly fully funded by earnings and may face sustainability risks if earnings continue to decline at the current rate. The high payout ratio combined with negative growth rates indicates that the company is distributing almost all of its remaining earnings to shareholders rather than reinvesting capital into growth initiatives or debt reduction. Overall, the growth and income profile presents a high-yield but contracting business where the substantial dividend yield must be weighed against the negative trajectory of both revenue and earnings growth.