BROOKFIELD CORP (BN)
CA11271J1075 - Common Stock
BN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 212 industry peers in the Capital Markets industry. BN has a medium profitability rating, but doesn't score so well on its financial health evaluation. BN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BN was profitable.
BN had a positive operating cash flow in the past year.
BN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BN had a positive operating cash flow.
1.2 Ratios
BN's Return On Assets of 0.20% is on the low side compared to the rest of the industry. BN is outperformed by 74.64% of its industry peers.
Looking at the Return On Equity, with a value of 2.11%, BN is doing worse than 72.73% of the companies in the same industry.
BN has a Return On Invested Capital of 4.53%. This is comparable to the rest of the industry: BN outperforms 54.07% of its industry peers.
BN had an Average Return On Invested Capital over the past 3 years of 3.94%. This is significantly below the industry average of 10.84%.
The last Return On Invested Capital (4.53%) for BN is above the 3 year average (3.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 2.11% | ||
| ROIC | 4.53% |
ROA(3y)0.54%
ROA(5y)0.47%
ROE(3y)4.9%
ROE(5y)4.3%
ROIC(3y)3.94%
ROIC(5y)3.62%
1.3 Margins
Looking at the Profit Margin, with a value of 1.00%, BN is doing worse than 73.21% of the companies in the same industry.
In the last couple of years the Profit Margin of BN has declined.
With a Operating Margin value of 21.84%, BN is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
BN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.13%, BN is doing worse than 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of BN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.84% | ||
| PM (TTM) | 1% | ||
| GM | 15.13% |
OM growth 3Y10.13%
OM growth 5Y6.12%
PM growth 3YN/A
PM growth 5Y-30.16%
GM growth 3Y1.18%
GM growth 5Y6.07%
2. Health
2.1 Basic Checks
Compared to 1 year ago, BN has less shares outstanding
BN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BN has an improved debt to assets ratio.
2.2 Solvency
BN has an Altman-Z score of 0.33. This is a bad value and indicates that BN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.33, BN is doing worse than 73.21% of the companies in the same industry.
A Debt/Equity ratio of 3.83 is on the high side and indicates that BN has dependencies on debt financing.
The Debt to Equity ratio of BN (3.83) is worse than 80.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.44 indicates that BN may have some problems paying its short term obligations.
BN has a worse Current ratio (0.44) than 75.12% of its industry peers.
BN has a Quick Ratio of 0.44. 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 0.34, BN is doing worse than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
BN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.23%.
BN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.73% yearly.
BN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.40%.
Measured over the past years, BN shows a quite strong growth in Revenue. The Revenue has been growing by 11.06% on average per year.
EPS 1Y (TTM)-47.23%
EPS 3YN/A
EPS 5Y5.73%
EPS growth Q2Q460.87%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Revenue growth Q2Q1.26%
3.2 Future
BN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.90% yearly.
Based on estimates for the next years, BN will show a small growth in Revenue. The Revenue will grow by 1.51% on average per year.
EPS Next Y20.06%
EPS Next 2Y17.69%
EPS Next 3Y18.9%
EPS Next 5YN/A
Revenue Next Year-43.74%
Revenue Next 2Y-22.98%
Revenue Next 3Y1.51%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BN is valuated correctly with a Price/Earnings ratio of 14.52.
The rest of the industry has a similar Price/Earnings ratio as BN.
BN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.09, BN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.30, BN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
BN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BN is cheaper than 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
BN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BN's earnings are expected to grow with 18.90% in the coming years.
PEG (NY)0.72
PEG (5Y)2.53
EPS Next 2Y17.69%
EPS Next 3Y18.9%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.76%, which is pretty low.
BN's Dividend Yield is slightly below the industry average, which is at 7.27.
Compared to an average S&P500 Dividend Yield of 2.40, BN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of BN decreases each year by -5.12%.
BN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BN pays out 62.45% of its income as dividend. This is not a sustainable payout ratio.
DP62.45%
EPS Next 2Y17.69%
EPS Next 3Y18.9%
BROOKFIELD CORP
NYSE:BN (5/8/2024, 7:04:01 PM)
After market: 44.18 +0.19 (+0.43%)43.99
+0.26 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 2.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.84% | ||
| PM (TTM) | 1% | ||
| GM | 15.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-47.23%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y20.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.4%
Revenue growth 3Y15.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y