BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
NYSE:BAM - CA1130041058 - Common Stock
60.75 USD
+0.36 (+0.6%)
60.75 USD
0 (0%)
Taking everything into account, BAM scores 5 out of 10 in our fundamental rating. BAM was compared to 238 industry peers in the Capital Markets industry. BAM has an excellent financial health rating, but there are some minor concerns on its 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.
In the past 5 years BAM has always been profitable.
BAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BAM has a Return On Assets of 8.71%. This is amongst the best in the industry. BAM outperforms 86.13% of its industry peers.
BAM's Return On Equity of 13.61% is fine compared to the rest of the industry. BAM outperforms 73.95% of its industry peers.
BAM has a Return On Invested Capital of 7.21%. This is in the better half of the industry: BAM outperforms 76.47% 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 7.60%.
The last Return On Invested Capital (7.21%) for BAM is above the 3 year average (1.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 13.61% | ||
| ROIC | 7.21% |
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 57.13%, BAM belongs to the best of the industry, outperforming 94.96% of the companies in the same industry.
In the last couple of years the Profit Margin of BAM has grown nicely.
BAM's Operating Margin of 51.12% is amongst the best of the industry. BAM outperforms 86.13% of its industry peers.
BAM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.12% | ||
| PM (TTM) | 57.13% | ||
| 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.
BAM has less shares outstanding than it did 5 years ago.
BAM has a better debt/assets ratio than last year.
2.2 Solvency
BAM has an Altman-Z score of 10.63. This indicates that BAM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.63, BAM belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
The Debt to FCF ratio of BAM is 2.32, which is a good value as it means it would take BAM, 2.32 years of fcf income to pay off all of its debts.
BAM's Debt to FCF ratio of 2.32 is amongst the best of the industry. BAM outperforms 84.87% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that BAM is not too dependend on debt financing.
BAM has a better Debt to Equity ratio (0.22) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 10.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BAM has a Current Ratio of 1.31. This is a normal value and indicates that BAM is financially healthy and should not expect problems in meeting its short term obligations.
BAM's Current ratio of 1.31 is in line compared to the rest of the industry. BAM outperforms 58.40% of its industry peers.
A Quick Ratio of 1.31 indicates that BAM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, BAM is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
BAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.94%, which is quite good.
BAM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.95% yearly.
BAM shows a strong growth in Revenue. In the last year, the Revenue has grown by 531.03%.
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)15.94%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%23.53%
Revenue 1Y (TTM)531.03%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-5.05%
3.2 Future
The Earnings Per Share is expected to grow by 15.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.83% on average over the next years. This is quite good.
EPS Next Y12.59%
EPS Next 2Y14.95%
EPS Next 3Y15.78%
EPS Next 5YN/A
Revenue Next Year12.08%
Revenue Next 2Y13.21%
Revenue Next 3Y11.83%
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
A Price/Earnings ratio of 37.97 indicates a quite expensive valuation of BAM.
75.21% of the companies in the same industry are cheaper than BAM, based on the Price/Earnings ratio.
BAM is valuated rather expensively when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.71, BAM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BAM is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.80. BAM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.97 | ||
| Fwd PE | 31.71 |
4.2 Price Multiples
BAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.21 | ||
| 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.
A more expensive valuation may be justified as BAM's earnings are expected to grow with 15.78% in the coming years.
PEG (NY)3.02
PEG (5Y)N/A
EPS Next 2Y14.95%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.00, BAM has a dividend in line with its industry peers.
BAM's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 122.97% of its income as dividend. This is not a sustainable payout ratio.
DP122.97%
EPS Next 2Y14.95%
EPS Next 3Y15.78%
60.75
+0.36 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.02%
Inst Owner Change12276.8%
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap99.49B
Analysts70.48
Price Target63.94 (5.25%)
Short Float %4.72%
Short Ratio7.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP122.97%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.8%
Min EPS beat(2)-1.13%
Max EPS beat(2)6.73%
EPS beat(4)3
Avg EPS beat(4)3.2%
Min EPS beat(4)-1.13%
Max EPS beat(4)6.73%
EPS beat(8)5
Avg EPS beat(8)2.65%
EPS beat(12)8
Avg EPS beat(12)3.3%
EPS beat(16)10
Avg EPS beat(16)14.49%
Revenue beat(2)0
Avg Revenue beat(2)-16.78%
Min Revenue beat(2)-17.67%
Max Revenue beat(2)-15.9%
Revenue beat(4)0
Avg Revenue beat(4)-12.82%
Min Revenue beat(4)-17.67%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-9.19%
Revenue beat(12)1
Avg Revenue beat(12)-15.43%
Revenue beat(16)3
Avg Revenue beat(16)127.5%
PT rev (1m)7.99%
PT rev (3m)14.14%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-4.22%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-1.6%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.97 | ||
| Fwd PE | 31.71 | ||
| P/S | 40.43 | ||
| P/FCF | 103.21 | ||
| P/OCF | 102.99 | ||
| P/B | 9.63 | ||
| P/tB | 9.63 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.6
EY2.63%
EPS(NY)1.92
Fwd EY3.15%
FCF(TTM)0.59
FCFY0.97%
OCF(TTM)0.59
OCFY0.97%
SpS1.5
BVpS6.31
TBVpS6.31
PEG (NY)3.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 13.61% | ||
| ROCE | 9.83% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 7.81% | ||
| OM | 51.12% | ||
| PM (TTM) | 57.13% | ||
| GM | N/A | ||
| FCFM | 39.17% |
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-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 21.69 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 68.56% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 10.63 |
F-Score5
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)15.94%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%23.53%
EPS Next Y12.59%
EPS Next 2Y14.95%
EPS Next 3Y15.78%
EPS Next 5YN/A
Revenue 1Y (TTM)531.03%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-5.05%
Revenue Next Year12.08%
Revenue Next 2Y13.21%
Revenue Next 3Y11.83%
Revenue Next 5YN/A
EBIT growth 1Y2319.23%
EBIT growth 3Y-62.73%
EBIT growth 5Y-39.83%
EBIT Next Year12.14%
EBIT Next 3Y17.48%
EBIT Next 5YN/A
FCF growth 1Y139.98%
FCF growth 3Y-25.34%
FCF growth 5Y-6.68%
OCF growth 1Y140.66%
OCF growth 3Y-24.26%
OCF growth 5Y-5.43%