BROOKFIELD ASSET MGMT-A (BAM.CA) Stock Fundamental Analysis
TSX:BAM - Toronto Stock Exchange - CA1130041058 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BAM. BAM was compared to 76 industry peers in the Capital Markets industry. Both the profitability and the financial health of BAM get a neutral evaluation. Nothing too spectacular is happening here. BAM has a expensive valuation and it also scores bad on growth.
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.
Of the past 5 years BAM 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: BAM reported negative operating cash flow in multiple years.
1.2 Ratios
BAM's Return On Assets of 10.41% is amongst the best of the industry. BAM outperforms 81.58% of its industry peers.
The Return On Equity of BAM (13.99%) is better than 82.89% of its industry peers.
BAM has a worse Return On Invested Capital (1.41%) than 68.42% of its industry peers.
BAM had an Average Return On Invested Capital over the past 3 years of 3.03%. This is significantly below the industry average of 8.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 13.99% | ||
| ROIC | 1.41% |
ROA(3y)7.32%
ROA(5y)N/A
ROE(3y)13.82%
ROE(5y)N/A
ROIC(3y)3.03%
ROIC(5y)N/A
1.3 Margins
BAM has a better Profit Margin (86.21%) than 89.47% of its industry peers.
BAM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 13.03%, BAM is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
BAM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.03% | ||
| PM (TTM) | 86.21% | ||
| GM | N/A |
OM growth 3Y-40.15%
OM growth 5YN/A
PM growth 3Y85.4%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
There is no outstanding debt for BAM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 43.93 indicates that BAM is not in any danger for bankruptcy at the moment.
BAM has a Altman-Z score of 43.93. This is amongst the best in the industry. BAM outperforms 96.05% of its industry peers.
The Debt to FCF ratio of BAM is 0.39, which is an excellent value as it means it would take BAM, only 0.39 years of fcf income to pay off all of its debts.
BAM has a better Debt to FCF ratio (0.39) than 89.47% of its industry peers.
BAM has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BAM (0.07) is better than 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 43.93 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.87 indicates that BAM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, BAM is in line with its industry, outperforming 48.68% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that BAM may have some problems paying its short term obligations.
BAM has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
BAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.84%.
EPS 1Y (TTM)5.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.89%
3.2 Future
The Earnings Per Share is expected to grow by 15.05% on average over the next years. This is quite good.
BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
EPS Next Y15.72%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue Next Year12.5%
Revenue Next 2Y13.73%
Revenue Next 3Y13.17%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.94, BAM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BAM is valued a bit more expensive than the industry average as 72.37% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.64. BAM is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.22, BAM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as BAM.
BAM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 30.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.6 | ||
| EV/EBITDA | 986.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BAM's earnings are expected to grow with 15.05% in the coming years.
PEG (NY)2.22
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.60%.
Compared to an average industry Dividend Yield of 3.69, BAM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, BAM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
BAM has been paying a dividend for over 5 years, so it has already some track record.
BAM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BAM pays out 132.44% of its income as dividend. This is not a sustainable payout ratio.
DP132.44%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
TSX:BAM (4/23/2025, 7:00:00 PM)
70.22
+1.81 (+2.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.29%
Inst Owner ChangeN/A
Ins Owners1.96%
Ins Owner ChangeN/A
Market Cap114.97B
Analysts66.67
Price Target86.51 (23.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP132.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.59%
Min EPS beat(2)-2.55%
Max EPS beat(2)5.74%
EPS beat(4)2
Avg EPS beat(4)1.27%
Min EPS beat(4)-3.62%
Max EPS beat(4)5.74%
EPS beat(8)5
Avg EPS beat(8)2.44%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)-0.36%
Revenue beat(8)1
Avg Revenue beat(8)-5.24%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.16%
PT rev (3m)5.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 30.22 | ||
| P/S | 159.06 | ||
| P/FCF | 149.6 | ||
| P/OCF | 139.78 | ||
| P/B | 25.81 | ||
| P/tB | 25.81 | ||
| EV/EBITDA | 986.25 |
EPS(TTM)2.01
EY2.86%
EPS(NY)2.32
Fwd EY3.31%
FCF(TTM)0.47
FCFY0.67%
OCF(TTM)0.5
OCFY0.72%
SpS0.44
BVpS2.72
TBVpS2.72
PEG (NY)2.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 13.99% | ||
| ROCE | 2.09% | ||
| ROIC | 1.41% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 1.45% | ||
| OM | 13.03% | ||
| PM (TTM) | 86.21% | ||
| GM | N/A | ||
| FCFM | 106.32% |
ROA(3y)7.32%
ROA(5y)N/A
ROE(3y)13.82%
ROE(5y)N/A
ROIC(3y)3.03%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.39%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-40.15%
OM growth 5YN/A
PM growth 3Y85.4%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 278.57% | ||
| Cap/Sales | 7.47% | ||
| Interest Coverage | 4.25 | ||
| Cash Conversion | 724.39% | ||
| Profit Quality | 123.33% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 43.93 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)237.01%
Cap/Depr(5y)202.68%
Cap/Sales(3y)15.66%
Cap/Sales(5y)9.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y15.72%
EPS Next 2Y15.82%
EPS Next 3Y15.05%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.89%
Revenue Next Year12.5%
Revenue Next 2Y13.73%
Revenue Next 3Y13.17%
Revenue Next 5YN/A
EBIT growth 1Y-93.06%
EBIT growth 3Y-66.34%
EBIT growth 5YN/A
EBIT Next Year4.69%
EBIT Next 3Y14.09%
EBIT Next 5Y15.1%
FCF growth 1Y23450%
FCF growth 3Y-35.81%
FCF growth 5YN/A
OCF growth 1Y25500%
OCF growth 3Y-34.24%
OCF growth 5YN/A