Brilliant Earth Group, Inc.
$1.20
-4.0%Brilliant Earth Group, Inc. engages in the design, procurement, and retail sale of diamonds, gemstones, and jewelry in the United States and internationally. Its product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry. The company sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms. As of December 31, 2021, it had 15 showrooms. The company was founded in 2005 and is headquartered in San Francisco, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -4.8).
Valuation inputs: P/E -4.8, earnings yield N/A, momentum -4.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -29.5%, ROIC -4.6%).
Profitability stack: net margin -0.8%, ROE -29.5%, ROIC -4.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +60.4%, momentum -4.0%, net margin -0.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Brilliant Earth Group, Inc. Market vs Earnings Trajectory
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Brilliant Earth Group, Inc. Fair Value Envelope
Brilliant Earth Group, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Brilliant Earth Group, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Brilliant Earth Group, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Brilliant Earth Group, Inc. Street Expectations Map
Wall Street analysts project that BRLT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 1.68, with estimates ranging from a low of 1.50 to a high of 1.85.
The consensus 1-year price target stands at 1.68, with estimates ranging from a low of 1.50 to a high of 1.85.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Brilliant Earth Group, Inc. Insider Positioning
During the last 12 months, insiders have sold $78K worth of BRLT shares, with no buying activity reported.
3 Months
0
0.00
10.1K
11.64K
-12K
-$12K
3-6 Months
0
0.00
19.7K
26.97K
-27K
-$27K
6-9 Months
0
0.00
9.2K
18.29K
-18K
-$18K
9-12 Months
0
0.00
15.4K
20.85K
-21K
-$21K
Top Buyers
No buying activity
Top Sellers
Dziesietnik Sharon
Officer: Chief Operations Officer
$57K
Harris Jennifer Noel
Director
$21K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $78K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.
brlt Dividend History
Learning Layer
Related Guides
Build conviction on BRLT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.