BROOKFIELD CORP (BN) Stock Fundamental Analysis
USA - NYSE:BN - CA11271J1075 - Common Stock
46.55 USD
-0.93 (-1.96%)
46.94 USD
+0.39 (+0.84%)
BN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 235 industry peers in the Capital Markets industry. While BN is still in line with the averages on profitability rating, there are concerns on its financial health. BN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
BN had a positive operating cash flow in the past year.
BN had positive earnings in 4 of the past 5 years.
BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BN has a worse Return On Assets (0.13%) than 74.47% of its industry peers.
The Return On Equity of BN (1.45%) is worse than 71.49% of its industry peers.
BN has a Return On Invested Capital (3.69%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BN is below the industry average of 7.61%.
The 3 year average ROIC (3.69%) for BN is below the current ROIC(3.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 1.45% | ||
| ROIC | 3.69% |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.69%
ROIC(5y)3.45%
1.3 Margins
BN has a Profit Margin of 0.89%. This is in the lower half of the industry: BN underperforms 71.91% of its industry peers.
In the last couple of years the Profit Margin of BN has declined.
Looking at the Operating Margin, with a value of 26.65%, BN is in line with its industry, outperforming 51.91% of the companies in the same industry.
In the last couple of years the Operating Margin of BN has grown nicely.
The Gross Margin of BN (37.81%) is worse than 65.96% of its industry peers.
BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.65% | ||
| PM (TTM) | 0.89% | ||
| GM | 37.81% |
OM growth 3Y4.81%
OM growth 5Y5.87%
PM growth 3Y-52.22%
PM growth 5Y-32.46%
GM growth 3Y8.55%
GM growth 5Y6.54%
2. Health
2.1 Basic Checks
Compared to 1 year ago, BN has less shares outstanding
The number of shares outstanding for BN remains at a similar level compared to 5 years ago.
BN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that BN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.38, BN is not doing good in the industry: 67.66% of the companies in the same industry are doing better.
BN has a Debt/Equity ratio of 4.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BN (4.50) is worse than 85.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.56 indicates that BN may have some problems paying its short term obligations.
BN has a Current ratio of 0.56. This is in the lower half of the industry: BN underperforms 75.32% of its industry peers.
BN has a Quick Ratio of 0.56. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BN (0.47) is worse than 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for BN have decreased strongly by -16.03% in the last year.
The Earnings Per Share has been growing by 18.12% on average over the past years. This is quite good.
Looking at the last year, BN shows a very negative growth in Revenue. The Revenue has decreased by -19.85% in the last year.
BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.86% yearly.
EPS 1Y (TTM)-16.03%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%-56.54%
Revenue 1Y (TTM)-19.85%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%-21.55%
3.2 Future
Based on estimates for the next years, BN will show a decrease in Earnings Per Share. The EPS will decrease by -1.66% on average per year.
Based on estimates for the next years, BN will show a very strong growth in Revenue. The Revenue will grow by 27.63% on average per year.
EPS Next Y-35.83%
EPS Next 2Y-12.11%
EPS Next 3Y-1.66%
EPS Next 5YN/A
Revenue Next Year24.05%
Revenue Next 2Y34.36%
Revenue Next 3Y27.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 15.06, the valuation of BN can be described as correct.
BN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.76. BN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.18, the valuation of BN can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as BN.
BN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
85.11% of the companies in the same industry are more expensive than BN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-12.11%
EPS Next 3Y-1.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.22%, BN is a good candidate for dividend investing.
BN's Dividend Yield is comparable with the industry average which is at 8.34.
BN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
5.2 History
The dividend of BN decreases each year by -3.57%.
BN has paid a dividend for at least 10 years, which is a reliable track record.
BN has decreased its dividend recently.
Dividend Growth(5Y)-3.57%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BN pays out 102.07% of its income as dividend. This is not a sustainable payout ratio.
BN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP102.07%
EPS Next 2Y-12.11%
EPS Next 3Y-1.66%
46.55
-0.93 (-1.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.37%
Inst Owner Change-0.15%
Ins Owners10.26%
Ins Owner ChangeN/A
Market Cap115.16B
Revenue(TTM)76.08B
Net Income(TTM)675.00M
Analysts76.84
Price TargetN/A
Short Float %N/A
Short Ratio11.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
Yearly Dividend0.44
Dividend Growth(5Y)-3.57%
DP102.07%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.92%
Min EPS beat(2)-2.36%
Max EPS beat(2)6.19%
EPS beat(4)2
Avg EPS beat(4)3.82%
Min EPS beat(4)-2.36%
Max EPS beat(4)11.75%
EPS beat(8)6
Avg EPS beat(8)12.81%
EPS beat(12)9
Avg EPS beat(12)-0.24%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1127.6%
Min Revenue beat(2)1118.53%
Max Revenue beat(2)1136.66%
Revenue beat(4)4
Avg Revenue beat(4)1262.07%
Min Revenue beat(4)1118.53%
Max Revenue beat(4)1473.07%
Revenue beat(8)8
Avg Revenue beat(8)846.78%
Revenue beat(12)12
Avg Revenue beat(12)582.41%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)9.7%
EPS NQ rev (1m)-37.74%
EPS NQ rev (3m)-38.28%
EPS NY rev (1m)-34.54%
EPS NY rev (3m)-35.66%
Revenue NQ rev (1m)7.14%
Revenue NQ rev (3m)7.14%
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 15.18 | ||
| P/S | 1.51 | ||
| P/FCF | N/A | ||
| P/OCF | 11.39 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.7 |
EPS(TTM)3.09
EY6.64%
EPS(NY)3.07
Fwd EY6.59%
FCF(TTM)-4.4
FCFYN/A
OCF(TTM)4.09
OCFY8.78%
SpS30.75
BVpS18.83
TBVpS-12.94
PEG (NY)N/A
PEG (5Y)0.83
Graham Number36.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 1.45% | ||
| ROCE | 4.96% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.77% | ||
| OM | 26.65% | ||
| PM (TTM) | 0.89% | ||
| GM | 37.81% | ||
| FCFM | N/A |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.69%
ROIC(5y)3.45%
ROICexc(3y)3.83%
ROICexc(5y)3.59%
ROICexgc(3y)4.77%
ROICexgc(5y)4.39%
ROCE(3y)4.96%
ROCE(5y)4.64%
ROICexgc growth 3Y2.5%
ROICexgc growth 5Y4.8%
ROICexc growth 3Y1.58%
ROICexc growth 5Y3.93%
OM growth 3Y4.81%
OM growth 5Y5.87%
PM growth 3Y-52.22%
PM growth 5Y-32.46%
GM growth 3Y8.55%
GM growth 5Y6.54%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.97 | ||
| Cap/Depr | 213.98% | ||
| Cap/Sales | 27.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.38 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)209.51%
Cap/Depr(5y)213.66%
Cap/Sales(3y)20.38%
Cap/Sales(5y)19.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.03%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%-56.54%
EPS Next Y-35.83%
EPS Next 2Y-12.11%
EPS Next 3Y-1.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.85%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%-21.55%
Revenue Next Year24.05%
Revenue Next 2Y34.36%
Revenue Next 3Y27.63%
Revenue Next 5YN/A
EBIT growth 1Y0.94%
EBIT growth 3Y9.35%
EBIT growth 5Y11.02%
EBIT Next Year393.96%
EBIT Next 3Y70.07%
EBIT Next 5YN/A
FCF growth 1Y-8.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.06%
OCF growth 3Y-1.38%
OCF growth 5Y3.07%
BROOKFIELD CORP / BN FAQ
What is the ChartMill fundamental rating of BROOKFIELD CORP (BN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BN.
Can you provide the valuation status for BROOKFIELD CORP?
ChartMill assigns a valuation rating of 3 / 10 to BROOKFIELD CORP (BN). This can be considered as Overvalued.
Can you provide the profitability details for BROOKFIELD CORP?
BROOKFIELD CORP (BN) has a profitability rating of 4 / 10.
How financially healthy is BROOKFIELD CORP?
The financial health rating of BROOKFIELD CORP (BN) is 1 / 10.
How sustainable is the dividend of BROOKFIELD CORP (BN) stock?
The dividend rating of BROOKFIELD CORP (BN) is 4 / 10 and the dividend payout ratio is 102.07%.