BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
NYSE:BAM - New York Stock Exchange, Inc. - CA1130041058 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BAM. BAM was compared to 229 industry peers in the Capital Markets industry. BAM has an average financial health and profitability rating. BAM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BAM was profitable.
In the past year BAM had a positive cash flow from operations.
BAM had positive earnings in each of the past 5 years.
BAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BAM (12.33%) is better than 92.58% of its industry peers.
With an excellent Return On Equity value of 16.66%, BAM belongs to the best of the industry, outperforming 81.22% of the companies in the same industry.
BAM has a worse Return On Invested Capital (2.41%) than 63.32% of its industry peers.
BAM had an Average Return On Invested Capital over the past 3 years of 1.40%. This is significantly below the industry average of 7.23%.
The last Return On Invested Capital (2.41%) for BAM is above the 3 year average (1.40%), which is a sign of increasing profitability.
| 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
BAM has a Profit Margin of 112.24%. This is amongst the best in the industry. BAM outperforms 99.13% of its industry peers.
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 44.54% 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
Compared to 1 year ago, BAM has more shares outstanding
The number of shares outstanding for BAM has been reduced compared to 5 years ago.
The debt/assets ratio for BAM has been reduced compared to a year ago.
2.2 Solvency
BAM has an Altman-Z score of 50.41. This indicates that BAM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BAM (50.41) is better than 98.25% 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.
BAM's Debt to FCF ratio of 0.39 is amongst the best of the industry. BAM outperforms 88.21% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that BAM is not too dependend on debt financing.
BAM has a better Debt to Equity ratio (0.07) than 81.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 50.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.88 indicates that BAM may have some problems paying its short term obligations.
BAM has a Current ratio of 0.88. This is in the lower half of the industry: BAM underperforms 60.26% of its industry peers.
A Quick Ratio of 0.88 indicates that BAM may have some problems paying its short term obligations.
BAM has a worse Quick ratio (0.88) than 60.26% 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.
Measured over the past years, BAM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.95% on average per year.
BAM shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.85%.
The Revenue for BAM have been decreasing by -26.01% on average. This is quite bad
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%16.8%
3.2 Future
Based on estimates for the next years, BAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.05% on average per year.
BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.19% yearly.
EPS Next Y15.72%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year11.6%
Revenue Next 2Y12.94%
Revenue Next 3Y12.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 38.76, which means the current valuation is very expensive for BAM.
75.11% of the companies in the same industry are cheaper than BAM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BAM to the average of the S&P500 Index (24.85), we can say BAM is valued expensively.
Based on the Price/Forward Earnings ratio of 30.29, the valuation of BAM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 70.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.89. BAM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.76 | ||
| Fwd PE | 30.29 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as BAM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 164.63 | ||
| 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.
BAM has a very decent profitability rating, which may justify a higher PE ratio.
BAM's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 8.38, BAM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, BAM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
BAM has been paying a dividend for at least 10 years, so it has a reliable track record.
As BAM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
116.45% of the earnings are spent on dividend by BAM. This is not a sustainable payout ratio.
DP116.45%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
58.92
+0.6 (+1.03%)
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 Cap96.47B
Analysts68.57
Price Target56.02 (-4.92%)
Short Float %3.24%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)1.38%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.76 | ||
| Fwd PE | 30.29 | ||
| P/S | 200.15 | ||
| P/FCF | 164.63 | ||
| P/OCF | 153.86 | ||
| P/B | 29.71 | ||
| P/tB | 29.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.52
EY2.58%
EPS(NY)1.95
Fwd EY3.3%
FCF(TTM)0.36
FCFY0.61%
OCF(TTM)0.38
OCFY0.65%
SpS0.29
BVpS1.98
TBVpS1.98
PEG (NY)2.47
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 | 50.41 |
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 Y15.72%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue 1Y (TTM)25.85%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%16.8%
Revenue Next Year11.6%
Revenue Next 2Y12.94%
Revenue Next 3Y12.19%
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%