BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
NYSE:BAM - New York Stock Exchange, Inc. - CA1130041058 - Common Stock - Currency: USD
Overall BAM gets a fundamental rating of 5 out of 10. We evaluated BAM against 230 industry peers in the Capital Markets industry. BAM has an average financial health and profitability rating. BAM is valied quite expensively at the moment, while 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
The Return On Assets of BAM (12.33%) is better than 92.61% of its industry peers.
BAM has a Return On Equity of 16.66%. This is amongst the best in the industry. BAM outperforms 80.43% of its industry peers.
BAM's Return On Invested Capital of 2.41% is on the low side compared to the rest of the industry. BAM is outperformed by 63.48% 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 7.09%.
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
The Profit Margin of BAM (112.24%) is better than 99.13% of its industry peers.
BAM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 22.20%, BAM perfoms like the industry average, outperforming 44.35% of the companies in the same industry.
In the last couple of years the Operating Margin of BAM has declined.
| 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 46.11. This indicates that BAM is financially healthy and has little risk of bankruptcy at the moment.
BAM's Altman-Z score of 46.11 is amongst the best of the industry. BAM outperforms 98.70% 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 has a better Debt to FCF ratio (0.39) than 89.13% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that BAM is not too dependend on debt financing.
The Debt to Equity ratio of BAM (0.07) is better than 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 46.11 |
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 (0.88) which is comparable to the rest of the industry.
BAM has a Quick 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.
The Quick ratio of BAM (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.84% over the past year.
The earnings per share for BAM have been decreasing by -22.96% on average. This is quite bad
The Revenue has grown by 25.85% in the past year. This is a very strong growth!
The Revenue for BAM have been decreasing by -26.01% on average. This is quite bad
EPS 1Y (TTM)5.84%
EPS 3Y-15.34%
EPS 5Y-22.96%
EPS Q2Q%11.11%
Revenue 1Y (TTM)25.85%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-3.89%
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 15.05% yearly.
The Revenue is expected to grow by 12.37% on average over the next years. This is quite good.
EPS Next Y15.72%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year12.58%
Revenue Next 2Y13.27%
Revenue Next 3Y12.37%
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
BAM is valuated quite expensively with a Price/Earnings ratio of 36.78.
74.35% 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 (28.88), we can say BAM is valued slightly more expensively.
BAM is valuated quite expensively with a Price/Forward Earnings ratio of 31.78.
BAM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BAM is more expensive than 73.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, BAM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.78 | ||
| Fwd PE | 31.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.01 | ||
| 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)2.34
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, BAM has a reasonable but not impressive dividend return.
BAM's Dividend Yield is comparable with the industry average which is at 8.30.
BAM's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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%
53.33
-0.49 (-0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.29%
Inst Owner Change0%
Ins Owners1.96%
Ins Owner ChangeN/A
Market Cap87.32B
Analysts66.67
Price Target55.99 (4.99%)
Short Float %3.02%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-7.58%
PT rev (3m)-1.53%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.78 | ||
| Fwd PE | 31.78 | ||
| P/S | 181.16 | ||
| P/FCF | 149.01 | ||
| P/OCF | 139.26 | ||
| P/B | 26.89 | ||
| P/tB | 26.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY2.72%
EPS(NY)1.68
Fwd EY3.15%
FCF(TTM)0.36
FCFY0.67%
OCF(TTM)0.38
OCFY0.72%
SpS0.29
BVpS1.98
TBVpS1.98
PEG (NY)2.34
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 | 46.11 |
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)5.84%
EPS 3Y-15.34%
EPS 5Y-22.96%
EPS Q2Q%11.11%
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%-3.89%
Revenue Next Year12.58%
Revenue Next 2Y13.27%
Revenue Next 3Y12.37%
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%