BROOKFIELD ASSET MGMT-A (BAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAM - CA1130041058 - Common Stock
51.11 USD
-0.15 (-0.29%)
50.707 USD
-0.4 (-0.79%)
Taking everything into account, BAM scores 6 out of 10 in our fundamental rating. BAM was compared to 237 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making BAM a very profitable company, without any liquidiy or solvency issues. BAM is quite expensive at the moment. It does show a decent growth rate. With these ratings, BAM could be worth investigating further for quality investing!.
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.
- Each year in the past 5 years BAM has been profitable.
- BAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of BAM (12.11%) is better than 89.45% of its industry peers.
- Looking at the Return On Equity, with a value of 19.96%, BAM belongs to the top of the industry, outperforming 87.34% of the companies in the same industry.
- BAM's Return On Invested Capital of 10.57% is amongst the best of the industry. BAM outperforms 86.50% of its industry peers.
- BAM had an Average Return On Invested Capital over the past 3 years of 1.40%. This is significantly below the industry average of 7.27%.
- The last Return On Invested Capital (10.57%) for BAM is above the 3 year average (1.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.11% | ||
| ROE | 19.96% | ||
| ROIC | 10.57% |
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 has a Profit Margin of 56.90%. This is amongst the best in the industry. BAM outperforms 91.56% of its industry peers.
- In the last couple of years the Profit Margin of BAM has grown nicely.
- BAM's Operating Margin of 53.34% is amongst the best of the industry. BAM outperforms 92.41% of its industry peers.
- In the last couple of years the Operating Margin of BAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.34% | ||
| PM (TTM) | 56.9% | ||
| 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
- Compared to 1 year ago, BAM has more shares outstanding
- Compared to 5 years ago, BAM has less shares outstanding
- BAM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.36 indicates that BAM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.36, BAM belongs to the top of the industry, outperforming 92.41% of the companies in the same industry.
- BAM has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
- The Debt to FCF ratio of BAM (1.85) is better than 86.92% of its industry peers.
- BAM has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- BAM's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. BAM outperforms 73.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 8.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.43 indicates that BAM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.43, BAM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- BAM has a Quick Ratio of 1.43. This is a normal value and indicates that BAM is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of BAM (1.43) is better than 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.60% over the past year.
- The earnings per share for BAM have been decreasing by -22.95% on average. This is quite bad
- The Revenue has grown by 573.75% in the past year. This is a very strong growth!
- BAM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -26.01% yearly.
EPS 1Y (TTM)15.6%
EPS 3Y-15.34%
EPS 5Y-22.95%
EPS Q2Q%7.89%
Revenue 1Y (TTM)573.75%
Revenue growth 3Y-46.15%
Revenue growth 5Y-26.01%
Sales Q2Q%14.88%
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 14.91% on average per year.
- BAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.15% yearly.
EPS Next Y10.98%
EPS Next 2Y13.07%
EPS Next 3Y14.56%
EPS Next 5Y14.91%
Revenue Next Year12.25%
Revenue Next 2Y12.86%
Revenue Next 3Y13.55%
Revenue Next 5Y13.15%
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
- The Price/Earnings ratio is 31.36, which means the current valuation is very expensive for BAM.
- Compared to the rest of the industry, the Price/Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 74.68% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. BAM is around the same levels.
- A Price/Forward Earnings ratio of 27.57 indicates a quite expensive valuation of BAM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 64.98% of the companies listed in the same industry.
- BAM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.36 | ||
| Fwd PE | 27.57 |
4.2 Price Multiples
- 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 | 54.43 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAM does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of BAM may justify a higher PE ratio.
- A more expensive valuation may be justified as BAM's earnings are expected to grow with 14.56% in the coming years.
PEG (NY)2.86
PEG (5Y)N/A
EPS Next 2Y13.07%
EPS Next 3Y14.56%
5. Dividend
5.1 Amount
- BAM has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
- BAM's Dividend Yield is comparable with the industry average which is at 5.87.
- Compared to an average S&P500 Dividend Yield of 1.82, BAM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
- BAM has been paying a dividend for at least 10 years, so it has 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
- 113.69% of the earnings are spent on dividend by BAM. This is not a sustainable payout ratio.
DP113.69%
EPS Next 2Y13.07%
EPS Next 3Y14.56%
BROOKFIELD ASSET MGMT-A / BAM FAQ
Can you provide the ChartMill fundamental rating for BROOKFIELD ASSET MGMT-A?
ChartMill assigns a fundamental rating of 6 / 10 to BAM.
What is the valuation status for BAM stock?
ChartMill assigns a valuation rating of 2 / 10 to BROOKFIELD ASSET MGMT-A (BAM). This can be considered as Overvalued.
Can you provide the profitability details for BROOKFIELD ASSET MGMT-A?
BROOKFIELD ASSET MGMT-A (BAM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BROOKFIELD ASSET MGMT-A (BAM) stock?
The Price/Earnings (PE) ratio for BROOKFIELD ASSET MGMT-A (BAM) is 31.36 and the Price/Book (PB) ratio is 8.35.
Can you provide the financial health for BAM stock?
The financial health rating of BROOKFIELD ASSET MGMT-A (BAM) is 7 / 10.