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 4 out of 10 in our fundamental rating. BAM was compared to 225 industry peers in the Capital Markets industry. BAM has only an average score on both its financial health and profitability. BAM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year BAM was profitable.
BAM had a positive operating cash flow in the past year.
BAM had positive earnings in 4 of the past 5 years.
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
The Return On Assets of BAM (10.41%) is better than 88.58% of its industry peers.
Looking at the Return On Equity, with a value of 13.99%, BAM is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.55%, BAM is doing worse than 66.67% of the companies in the same industry.
BAM had an Average Return On Invested Capital over the past 3 years of 3.33%. This is below the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 13.99% | ||
| ROIC | 1.55% |
ROA(3y)7.32%
ROA(5y)4.86%
ROE(3y)13.82%
ROE(5y)10.26%
ROIC(3y)3.33%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 86.21%, BAM belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
In the last couple of years the Profit Margin of BAM has grown nicely.
BAM's Operating Margin of 13.03% is on the low side compared to the rest of the industry. BAM is outperformed by 67.12% of its industry peers.
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 5Y-3.5%
PM growth 3Y85.4%
PM growth 5Y79.53%
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 53.59 indicates that BAM is not in any danger for bankruptcy at the moment.
BAM's Altman-Z score of 53.59 is amongst the best of the industry. BAM outperforms 99.09% 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.
Looking at the Debt to FCF ratio, with a value of 0.39, BAM belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that BAM is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.07, BAM belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 53.59 |
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.
With a Current ratio value of 0.87, BAM perfoms like the industry average, outperforming 42.01% of the companies in the same industry.
BAM has a Quick Ratio of 0.87. This is a bad value and indicates that BAM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BAM (0.87) is comparable to the rest of the industry.
| 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%.
Measured over the past years, BAM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.34% on average per year.
EPS 1Y (TTM)5.84%
EPS 3Y-15.34%
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 16.40% 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 13.42% yearly.
EPS Next Y17.64%
EPS Next 2Y16.91%
EPS Next 3Y16.4%
EPS Next 5YN/A
Revenue Next Year14.68%
Revenue Next 2Y14.67%
Revenue Next 3Y13.42%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.39, BAM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BAM indicates a slightly more expensive valuation: BAM is more expensive than 79.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. BAM is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 34.34, which means the current valuation is very expensive for BAM.
Based on the Price/Forward Earnings ratio, BAM is valued a bit more expensive than the industry average as 74.89% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of BAM to the average of the S&P500 Index (22.68), we can say BAM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 34.34 |
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 indicates a slightly more expensive valuation: BAM is more expensive than 61.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 172.78 | ||
| EV/EBITDA | 1203.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BAM's earnings are expected to grow with 16.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y16.91%
EPS Next 3Y16.4%
5. Dividend
5.1 Amount
BAM has a Yearly Dividend Yield of 2.03%.
BAM's Dividend Yield is slightly below the industry average, which is at 10.00.
BAM's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 132.44% of its income as dividend. This is not a sustainable payout ratio.
DP132.44%
EPS Next 2Y16.91%
EPS Next 3Y16.4%
58.57
-1.73 (-2.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners70.24%
Inst Owner Change0%
Ins Owners7.17%
Ins Owner ChangeN/A
Market Cap95.89B
Analysts65.71
Price Target60.12 (2.65%)
Short Float %2.37%
Short Ratio7.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP132.44%
Div Incr Years6
Div Non Decr Years6
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)8
Avg EPS beat(12)22.85%
EPS beat(16)10
Avg EPS beat(16)68.65%
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)2
Avg Revenue beat(12)-3.4%
Revenue beat(16)4
Avg Revenue beat(16)122.29%
PT rev (1m)1.6%
PT rev (3m)23.71%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 34.34 | ||
| P/S | 183.7 | ||
| P/FCF | 172.78 | ||
| P/OCF | 161.43 | ||
| P/B | 29.81 | ||
| P/tB | 29.81 | ||
| EV/EBITDA | 1203.75 |
EPS(TTM)1.45
EY2.48%
EPS(NY)1.71
Fwd EY2.91%
FCF(TTM)0.34
FCFY0.58%
OCF(TTM)0.36
OCFY0.62%
SpS0.32
BVpS1.96
TBVpS1.96
PEG (NY)2.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 13.99% | ||
| ROCE | 2.09% | ||
| ROIC | 1.55% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 1.59% | ||
| OM | 13.03% | ||
| PM (TTM) | 86.21% | ||
| GM | N/A | ||
| FCFM | 106.32% |
ROA(3y)7.32%
ROA(5y)4.86%
ROE(3y)13.82%
ROE(5y)10.26%
ROIC(3y)3.33%
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 5Y-3.5%
PM growth 3Y85.4%
PM growth 5Y79.53%
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 | 53.59 |
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 3Y-15.34%
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y17.64%
EPS Next 2Y16.91%
EPS Next 3Y16.4%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.89%
Revenue Next Year14.68%
Revenue Next 2Y14.67%
Revenue Next 3Y13.42%
Revenue Next 5YN/A
EBIT growth 1Y-93.06%
EBIT growth 3Y-66.34%
EBIT growth 5Y-64.49%
EBIT Next Year4.69%
EBIT Next 3Y16.05%
EBIT Next 5YN/A
FCF growth 1Y-88.15%
FCF growth 3Y-35.81%
FCF growth 5Y-31.93%
OCF growth 1Y49.62%
OCF growth 3Y-34.24%
OCF growth 5Y-37.1%