BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
NYSE:BAM - New York Stock Exchange, Inc. - CA1130041058 - Common Stock - Currency: USD
Taking everything into account, BAM scores 5 out of 10 in our fundamental rating. BAM was compared to 233 industry peers in the Capital Markets industry. While BAM has a great health rating, its profitability is only average at the moment. BAM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BAM was profitable.
In the past year BAM had a positive cash flow from operations.
BAM had positive earnings in each of the past 5 years.
BAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BAM (6.32%) is better than 78.11% of its industry peers.
BAM has a Return On Equity (9.08%) which is in line with its industry peers.
BAM has a Return On Invested Capital (4.47%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BAM is significantly below the industry average of 7.84%.
The 3 year average ROIC (1.40%) for BAM is below the current ROIC(4.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.08% | ||
| ROIC | 4.47% |
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
BAM's Profit Margin of 66.67% is amongst the best of the industry. BAM outperforms 96.14% of its industry peers.
BAM's Profit Margin has improved in the last couple of years.
The Operating Margin of BAM (51.23%) is better than 85.84% of its industry peers.
In the last couple of years the Operating Margin of BAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.23% | ||
| PM (TTM) | 66.67% | ||
| 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.
Compared to 5 years ago, BAM has less shares outstanding
The debt/assets ratio for BAM has been reduced compared to a year ago.
2.2 Solvency
BAM has an Altman-Z score of 12.56. This indicates that BAM is financially healthy and has little risk of bankruptcy at the moment.
BAM's Altman-Z score of 12.56 is amongst the best of the industry. BAM outperforms 95.28% of its industry peers.
BAM has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as BAM would need 2.09 years to pay back of all of its debts.
The Debt to FCF ratio of BAM (2.09) is better than 83.69% of its industry peers.
BAM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
BAM has a better Debt to Equity ratio (0.15) than 77.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 12.56 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BAM has a Current Ratio of 1.37. 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 1.37 is in line compared to the rest of the industry. BAM outperforms 57.08% of its industry peers.
BAM has a Quick Ratio of 1.37. This is a normal value and indicates that BAM is financially healthy and should not expect problems in meeting its short term obligations.
BAM has a Quick ratio of 1.37. This is comparable to the rest of the industry: BAM outperforms 57.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% over the past year.
BAM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.95% yearly.
Looking at the last year, BAM shows a very strong growth in Revenue. The Revenue has grown by 264.78%.
The Revenue for BAM have been decreasing by -26.01% on average. This is quite bad
EPS 1Y (TTM)11.76%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%21.21%
Revenue 1Y (TTM)264.78%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
3.2 Future
Based on estimates for the next years, BAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.88% on average per year.
BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.12% yearly.
EPS Next Y14.59%
EPS Next 2Y15.46%
EPS Next 3Y15.88%
EPS Next 5YN/A
Revenue Next Year11.37%
Revenue Next 2Y12.57%
Revenue Next 3Y10.12%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.38, BAM can be considered very expensive at the moment.
BAM's Price/Earnings ratio is a bit more expensive when compared to the industry. BAM is more expensive than 75.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of BAM to the average of the S&P500 Index (27.45), we can say BAM is valued slightly more expensively.
BAM is valuated quite expensively with a Price/Forward Earnings ratio of 29.39.
Based on the Price/Forward Earnings ratio, BAM is valued a bit more expensive than the industry average as 69.96% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, BAM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 29.39 |
4.2 Price Multiples
BAM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.02 | ||
| 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.
BAM's earnings are expected to grow with 15.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y15.46%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.25%.
BAM's Dividend Yield is comparable with the industry average which is at 8.00.
BAM's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
BAM has paid a dividend for at least 10 years, which is 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 125.58% of its income as dividend. This is not a sustainable payout ratio.
DP125.58%
EPS Next 2Y15.46%
EPS Next 3Y15.88%
56.81
+1.27 (+2.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17%
Inst Owner Change-77.03%
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap93.02B
Analysts68.57
Price Target58.77 (3.45%)
Short Float %5.2%
Short Ratio7.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP125.58%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-1.13%
Max EPS beat(2)1.46%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-2.55%
Max EPS beat(4)5.74%
EPS beat(8)4
Avg EPS beat(8)1.73%
EPS beat(12)7
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)11.86%
Revenue beat(2)0
Avg Revenue beat(2)-17.41%
Min Revenue beat(2)-17.67%
Max Revenue beat(2)-17.15%
Revenue beat(4)0
Avg Revenue beat(4)-9.23%
Min Revenue beat(4)-17.67%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-8.6%
Revenue beat(12)1
Avg Revenue beat(12)-22.04%
Revenue beat(16)3
Avg Revenue beat(16)123.44%
PT rev (1m)4.9%
PT rev (3m)-2.77%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 29.39 | ||
| P/S | 65.55 | ||
| P/FCF | 125.02 | ||
| P/OCF | 124.52 | ||
| P/B | 8.93 | ||
| P/tB | 8.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.52
EY2.68%
EPS(NY)1.93
Fwd EY3.4%
FCF(TTM)0.45
FCFY0.8%
OCF(TTM)0.46
OCFY0.8%
SpS0.87
BVpS6.36
TBVpS6.36
PEG (NY)2.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 9.08% | ||
| ROCE | 6.09% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 4.8% | ||
| OM | 51.23% | ||
| PM (TTM) | 66.67% | ||
| GM | N/A | ||
| FCFM | 52.43% |
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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 31.61 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 78.65% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 12.56 |
F-Score4
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)11.76%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%21.21%
EPS Next Y14.59%
EPS Next 2Y15.46%
EPS Next 3Y15.88%
EPS Next 5YN/A
Revenue 1Y (TTM)264.78%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%-2.88%
Revenue Next Year11.37%
Revenue Next 2Y12.57%
Revenue Next 3Y10.12%
Revenue Next 5YN/A
EBIT growth 1Y1072.58%
EBIT growth 3Y-62.73%
EBIT growth 5Y-39.83%
EBIT Next Year17.11%
EBIT Next 3Y17.48%
EBIT Next 5YN/A
FCF growth 1Y514.88%
FCF growth 3Y-25.34%
FCF growth 5Y-6.68%
OCF growth 1Y372.79%
OCF growth 3Y-24.26%
OCF growth 5Y-5.43%