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 233 industry peers in the Capital Markets industry. BAM has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, BAM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BAM had positive earnings in the past year.
In the past year BAM had a positive cash flow from operations.
In the past 5 years BAM has always been profitable.
Of the past 5 years BAM 4 years had a positive operating cash flow.
1.2 Ratios
BAM has a better Return On Assets (6.32%) than 78.21% of its industry peers.
BAM has a Return On Equity (9.08%) which is comparable to the rest of the industry.
BAM's Return On Invested Capital of 4.47% is in line compared to the rest of the industry. BAM outperforms 57.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAM is significantly below the industry average of 7.84%.
The last Return On Invested Capital (4.47%) for BAM is above the 3 year average (1.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.08% | ||
| ROIC | 4.47% |
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
With an excellent Profit Margin value of 66.67%, BAM belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of BAM has grown nicely.
With an excellent Operating Margin value of 51.23%, BAM belongs to the best of the industry, outperforming 85.90% 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 | 51.23% | ||
| PM (TTM) | 66.67% | ||
| 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
The number of shares outstanding for BAM has been increased compared to 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
An Altman-Z score of 12.41 indicates that BAM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.41, BAM belongs to the top of the industry, outperforming 94.02% of the companies in the same industry.
The Debt to FCF ratio of BAM is 2.09, which is a good value as it means it would take BAM, 2.09 years of fcf income to pay off all of its debts.
BAM's Debt to FCF ratio of 2.09 is amongst the best of the industry. BAM outperforms 83.76% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that BAM is not too dependend on debt financing.
The Debt to Equity ratio of BAM (0.15) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 12.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.37 indicates that BAM should not have too much problems paying its short term obligations.
BAM's Current ratio of 1.37 is in line compared to the rest of the industry. BAM outperforms 57.69% of its industry peers.
A Quick Ratio of 1.37 indicates that BAM should not have too much problems paying its short term obligations.
The Quick ratio of BAM (1.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% over the past year.
The earnings per share for BAM have been decreasing by -22.95% on average. This is quite bad
Looking at the last year, BAM shows a very strong growth in Revenue. The Revenue has grown by 264.78%.
BAM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -26.01% yearly.
EPS 1Y (TTM)11.76%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%21.21%
Revenue 1Y (TTM)264.78%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
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 15.74% on average per year.
BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.72% yearly.
EPS Next Y13.8%
EPS Next 2Y15.04%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue Next Year11.62%
Revenue Next 2Y12.62%
Revenue Next 3Y10.72%
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
The Price/Earnings ratio is 36.92, which means the current valuation is very expensive for BAM.
Compared to the rest of the industry, the Price/Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 74.36% 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 27.30.
BAM is valuated quite expensively with a Price/Forward Earnings ratio of 29.25.
69.23% of the companies in the same industry are cheaper than BAM, based on the Price/Forward Earnings ratio.
BAM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 29.25 |
4.2 Price Multiples
BAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAM does not grow enough to justify the current Price/Earnings ratio.
BAM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BAM's earnings are expected to grow with 15.74% in the coming years.
PEG (NY)2.68
PEG (5Y)N/A
EPS Next 2Y15.04%
EPS Next 3Y15.74%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.26%.
BAM's Dividend Yield is comparable with the industry average which is at 8.12.
Compared to an average S&P500 Dividend Yield of 2.35, BAM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
BAM pays out 125.58% of its income as dividend. This is not a sustainable payout ratio.
DP125.58%
EPS Next 2Y15.04%
EPS Next 3Y15.74%
56.12
-0.45 (-0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17%
Inst Owner Change0%
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap91.90B
Analysts68.57
Price Target58.77 (4.72%)
Short Float %5.2%
Short Ratio7.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP125.58%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-1.13%
Max EPS beat(2)1.46%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-2.55%
Max EPS beat(4)5.74%
EPS beat(8)4
Avg EPS beat(8)1.73%
EPS beat(12)7
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)11.86%
Revenue beat(2)0
Avg Revenue beat(2)-17.41%
Min Revenue beat(2)-17.67%
Max Revenue beat(2)-17.15%
Revenue beat(4)0
Avg Revenue beat(4)-9.23%
Min Revenue beat(4)-17.67%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-8.6%
Revenue beat(12)1
Avg Revenue beat(12)-22.04%
Revenue beat(16)3
Avg Revenue beat(16)123.44%
PT rev (1m)0.47%
PT rev (3m)-2.33%
EPS NQ rev (1m)-2.32%
EPS NQ rev (3m)-3.42%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-2.64%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 29.25 | ||
| P/S | 64.76 | ||
| P/FCF | 123.52 | ||
| P/OCF | 123.02 | ||
| P/B | 8.82 | ||
| P/tB | 8.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.52
EY2.71%
EPS(NY)1.92
Fwd EY3.42%
FCF(TTM)0.45
FCFY0.81%
OCF(TTM)0.46
OCFY0.81%
SpS0.87
BVpS6.36
TBVpS6.36
PEG (NY)2.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.08% | ||
| ROCE | 6.09% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 4.8% | ||
| OM | 51.23% | ||
| PM (TTM) | 66.67% | ||
| GM | N/A | ||
| FCFM | 52.43% |
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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 31.61 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 78.65% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 12.41 |
F-Score4
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 Y13.8%
EPS Next 2Y15.04%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue 1Y (TTM)264.78%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
Revenue Next Year11.62%
Revenue Next 2Y12.62%
Revenue Next 3Y10.72%
Revenue Next 5YN/A
EBIT growth 1Y1072.58%
EBIT growth 3Y-62.73%
EBIT growth 5Y-39.83%
EBIT Next Year17.11%
EBIT Next 3Y17.48%
EBIT Next 5YN/A
FCF growth 1Y514.88%
FCF growth 3Y-25.34%
FCF growth 5Y-6.68%
OCF growth 1Y372.79%
OCF growth 3Y-24.26%
OCF growth 5Y-5.43%