BROOKFIELD CORP (BN) Stock Fundamental Analysis
NYSE:BN - New York Stock Exchange, Inc. - CA11271J1075 - Common Stock - Currency: USD
BN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. BN may be in some trouble as it scores bad on both profitability and health. BN is valied quite expensively at the moment, while 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 (0.09%) than 72.96% of its industry peers.
BN has a Return On Equity of 0.99%. This is in the lower half of the industry: BN underperforms 70.39% of its industry peers.
With a Return On Invested Capital value of 3.48%, BN perfoms like the industry average, outperforming 43.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BN is below the industry average of 7.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.99% | ||
| ROIC | 3.48% |
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
Looking at the Profit Margin, with a value of 0.55%, BN is doing worse than 71.67% of the companies in the same industry.
BN's Profit Margin has declined in the last couple of years.
BN has a Operating Margin of 24.95%. This is comparable to the rest of the industry: BN outperforms 46.35% of its industry peers.
BN's Operating Margin has improved in the last couple of years.
The Gross Margin of BN (35.04%) is worse than 69.96% of its industry peers.
BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.95% | ||
| PM (TTM) | 0.55% | ||
| GM | 35.04% |
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
The number of shares outstanding for BN has been reduced compared to 1 year ago.
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
BN has a Debt/Equity ratio of 5.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.43, BN is doing worse than 85.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BN has a Current Ratio of 1.11. This is a normal value and indicates that BN is financially healthy and should not expect problems in meeting its short term obligations.
BN has a Current ratio (1.11) which is comparable to the rest of the industry.
BN has a Quick Ratio of 1.11. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, BN is in line with its industry, outperforming 44.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.71%, which is quite impressive.
Measured over the past years, BN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.12% on average per year.
Looking at the last year, BN shows a very negative growth in Revenue. The Revenue has decreased by -15.17% in the last year.
The Revenue has been growing slightly by 4.86% on average over the past years.
EPS 1Y (TTM)35.71%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%1284.57%
3.2 Future
Based on estimates for the next years, BN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.32% on average per year.
The Revenue is expected to grow by 20.22% on average over the next years. This is a very strong growth
EPS Next Y-0.27%
EPS Next 2Y9.25%
EPS Next 3Y11.32%
EPS Next 5YN/A
Revenue Next Year28.06%
Revenue Next 2Y20.03%
Revenue Next 3Y20.22%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 15.11, the valuation of BN can be described as correct.
BN's Price/Earnings ratio is in line with the industry average.
BN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 13.33, the valuation of BN can be described as correct.
BN's Price/Forward Earnings is on the same level as the industry average.
BN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BN is valued cheaper than 86.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y9.25%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 5.94%, which is a nice return.
BN's Dividend Yield is comparable with the industry average which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.35, BN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
5.2 History
The dividend of BN decreases each year by -3.57%.
BN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BN decreased recently.
Dividend Growth(5Y)-3.57%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BN pays out 151.35% of its income as dividend. This is not a sustainable payout ratio.
DP151.35%
EPS Next 2Y9.25%
EPS Next 3Y11.32%
63.16
-0.8 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.19%
Inst Owner Change0%
Ins Owners10.27%
Ins Owner ChangeN/A
Market Cap104.09B
Analysts76.67
Price Target68.34 (8.2%)
Short Float %1.25%
Short Ratio8.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
Yearly Dividend0.44
Dividend Growth(5Y)-3.57%
DP151.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)6.19%
Max EPS beat(2)11.75%
EPS beat(4)3
Avg EPS beat(4)21.57%
Min EPS beat(4)-0.3%
Max EPS beat(4)68.65%
EPS beat(8)7
Avg EPS beat(8)14.69%
EPS beat(12)9
Avg EPS beat(12)-3.55%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1228.35%
Min Revenue beat(2)1136.66%
Max Revenue beat(2)1320.03%
Revenue beat(4)4
Avg Revenue beat(4)1410.47%
Min Revenue beat(4)1136.66%
Max Revenue beat(4)1712.11%
Revenue beat(8)8
Avg Revenue beat(8)707.05%
Revenue beat(12)12
Avg Revenue beat(12)490.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.08%
PT rev (3m)-1.68%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)3.27%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.33 | ||
| P/S | 1.28 | ||
| P/FCF | N/A | ||
| P/OCF | 11.88 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)4.18
EY6.62%
EPS(NY)4.74
Fwd EY7.5%
FCF(TTM)-8.64
FCFYN/A
OCF(TTM)5.32
OCFY8.42%
SpS49.17
BVpS27.46
TBVpS-17.58
PEG (NY)N/A
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.99% | ||
| ROCE | 4.67% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 4.35% | ||
| OM | 24.95% | ||
| PM (TTM) | 0.55% | ||
| GM | 35.04% | ||
| 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%
ROICexcg growth 3Y2.5%
ROICexcg 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.21 | ||
| Cap/Depr | 236.74% | ||
| Cap/Sales | 28.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | N/A |
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)35.71%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%27.27%
EPS Next Y-0.27%
EPS Next 2Y9.25%
EPS Next 3Y11.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%1284.57%
Revenue Next Year28.06%
Revenue Next 2Y20.03%
Revenue Next 3Y20.22%
Revenue Next 5YN/A
EBIT growth 1Y-4.56%
EBIT growth 3Y9.35%
EBIT growth 5Y11.02%
EBIT Next Year486.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.13%
OCF growth 3Y-1.38%
OCF growth 5Y3.07%