BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
NYSE:BAM - New York Stock Exchange, Inc. - CA1130041058 - Common Stock - Currency: USD
Taking everything into account, BAM scores 5 out of 10 in our fundamental rating. BAM was compared to 230 industry peers in the Capital Markets industry. BAM has only an average score on both its financial health and profitability. BAM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BAM had positive earnings in the past year.
BAM had a positive operating cash flow in the past year.
Each year in the past 5 years BAM has been profitable.
BAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.33%, BAM belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
The Return On Equity of BAM (16.66%) is better than 81.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.41%, BAM is doing worse than 63.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAM is significantly below the industry average of 7.27%.
The 3 year average ROIC (1.40%) for BAM is below the current ROIC(2.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 16.66% | ||
| ROIC | 2.41% |
ROA(3y)9%
ROA(5y)7.21%
ROE(3y)13.06%
ROE(5y)12.5%
ROIC(3y)1.4%
ROIC(5y)3.71%
1.3 Margins
Looking at the Profit Margin, with a value of 112.24%, BAM belongs to the top of the industry, outperforming 99.13% of the companies in the same industry.
BAM's Profit Margin has improved in the last couple of years.
BAM has a Operating Margin of 22.20%. This is comparable to the rest of the industry: BAM outperforms 44.78% of its industry peers.
BAM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 112.24% | ||
| GM | N/A |
OM growth 3Y-30.79%
OM growth 5Y-18.69%
PM growth 3Y22.85%
PM growth 5Y4.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BAM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BAM has less shares outstanding
BAM has a better debt/assets ratio than last year.
2.2 Solvency
BAM has an Altman-Z score of 50.84. This indicates that BAM is financially healthy and has little risk of bankruptcy at the moment.
BAM's Altman-Z score of 50.84 is amongst the best of the industry. BAM outperforms 98.26% of its industry peers.
BAM has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.39, BAM belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
BAM has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.07, BAM belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 50.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BAM has a Current Ratio of 0.88. This is a bad value and indicates that BAM is not financially healthy enough and could expect problems in meeting its short term obligations.
BAM's Current ratio of 0.88 is on the low side compared to the rest of the industry. BAM is outperformed by 60.43% of its industry peers.
A Quick Ratio of 0.88 indicates that BAM may have some problems paying its short term obligations.
BAM's Quick ratio of 0.88 is on the low side compared to the rest of the industry. BAM is outperformed by 60.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
BAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, which is quite good.
The earnings per share for BAM have been decreasing by -22.95% on average. This is quite bad
The Revenue has grown by 25.85% in the past year. This is a very strong growth!
Measured over the past years, BAM shows a very negative growth in Revenue. The Revenue has been decreasing by -26.01% on average per year.
EPS 1Y (TTM)11.76%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%21.21%
Revenue 1Y (TTM)25.85%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
3.2 Future
BAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.60% yearly.
BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.47% yearly.
EPS Next Y14.42%
EPS Next 2Y15.47%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year11.91%
Revenue Next 2Y13.21%
Revenue Next 3Y12.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.70, BAM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 74.78% of the companies listed in the same industry.
BAM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 29.64, BAM can be considered very expensive at the moment.
BAM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BAM is more expensive than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BAM to the average of the S&P500 Index (21.94), we can say BAM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.7 | ||
| Fwd PE | 29.64 |
4.2 Price Multiples
BAM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BAM may justify a higher PE ratio.
BAM's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, BAM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.20, BAM is paying slightly less dividend.
BAM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
BAM has been paying a dividend for at least 10 years, so it has a reliable track record.
BAM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
BAM pays out 116.45% of its income as dividend. This is not a sustainable payout ratio.
DP116.45%
EPS Next 2Y15.47%
EPS Next 3Y15.6%
57.3
-1.52 (-2.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.29%
Inst Owner Change-77.03%
Ins Owners1.96%
Ins Owner ChangeN/A
Market Cap93.82B
Analysts68.57
Price Target56.02 (-2.23%)
Short Float %3.24%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP116.45%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.6%
Min EPS beat(2)1.46%
Max EPS beat(2)5.74%
EPS beat(4)2
Avg EPS beat(4)0.26%
Min EPS beat(4)-3.62%
Max EPS beat(4)5.74%
EPS beat(8)5
Avg EPS beat(8)2.44%
EPS beat(12)8
Avg EPS beat(12)0.64%
EPS beat(16)10
Avg EPS beat(16)13.11%
Revenue beat(2)0
Avg Revenue beat(2)-8.86%
Min Revenue beat(2)-17.15%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-17.15%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-8.08%
Revenue beat(12)1
Avg Revenue beat(12)-22.1%
Revenue beat(16)3
Avg Revenue beat(16)118.66%
PT rev (1m)-6.89%
PT rev (3m)-3.02%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.7 | ||
| Fwd PE | 29.64 | ||
| P/S | 194.64 | ||
| P/FCF | 160.1 | ||
| P/OCF | 149.63 | ||
| P/B | 28.89 | ||
| P/tB | 28.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.52
EY2.65%
EPS(NY)1.93
Fwd EY3.37%
FCF(TTM)0.36
FCFY0.62%
OCF(TTM)0.38
OCFY0.67%
SpS0.29
BVpS1.98
TBVpS1.98
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 16.66% | ||
| ROCE | 3.26% | ||
| ROIC | 2.41% | ||
| ROICexc | 2.42% | ||
| ROICexgc | 2.47% | ||
| OM | 22.2% | ||
| PM (TTM) | 112.24% | ||
| GM | N/A | ||
| FCFM | 121.58% |
ROA(3y)9%
ROA(5y)7.21%
ROE(3y)13.06%
ROE(5y)12.5%
ROIC(3y)1.4%
ROIC(5y)3.71%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)1.93%
ROCE(5y)4.85%
ROICexcg growth 3Y-36.28%
ROICexcg growth 5YN/A
ROICexc growth 3Y-36.35%
ROICexc growth 5YN/A
OM growth 3Y-30.79%
OM growth 5Y-18.69%
PM growth 3Y22.85%
PM growth 5Y4.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.51% | ||
| Interest Coverage | 6.69 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 108.32% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 50.84 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)18.12%
Cap/Sales(5y)11.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%21.21%
EPS Next Y14.42%
EPS Next 2Y15.47%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)25.85%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
Revenue Next Year11.91%
Revenue Next 2Y13.21%
Revenue Next 3Y12.47%
Revenue Next 5YN/A
EBIT growth 1Y109.8%
EBIT growth 3Y-62.73%
EBIT growth 5Y-39.83%
EBIT Next Year18.94%
EBIT Next 3Y17.55%
EBIT Next 5YN/A
FCF growth 1Y25.48%
FCF growth 3Y-25.34%
FCF growth 5Y-6.68%
OCF growth 1Y23.43%
OCF growth 3Y-24.26%
OCF growth 5Y-5.43%