BROOKFIELD CORP (BN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BN - CA11271J1075 - Common Stock
64.61 CAD
+0.35 (+0.54%)
Taking everything into account, BN scores 3 out of 10 in our fundamental rating. BN was compared to 81 industry peers in the Capital Markets industry. Both the profitability and financial health of BN have multiple concerns. While showing a medium growth rate, BN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- BN had positive earnings in the past year.
- BN had a positive operating cash flow in the past year.
- Of the past 5 years BN 4 years were profitable.
- BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of BN (0.16%) is worse than 74.07% of its industry peers.
- BN has a Return On Equity of 1.78%. This is in the lower half of the industry: BN underperforms 67.90% of its industry peers.
- BN has a Return On Invested Capital (3.22%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BN is significantly below the industry average of 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 1.78% | ||
| ROIC | 3.22% |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.69%
ROIC(5y)3.45%
1.3 Margins
- BN has a worse Profit Margin (1.12%) than 71.60% of its industry peers.
- In the last couple of years the Profit Margin of BN has declined.
- Looking at the Operating Margin, with a value of 26.36%, BN is doing worse than 60.49% of the companies in the same industry.
- In the last couple of years the Operating Margin of BN has grown nicely.
- BN has a Gross Margin of 37.79%. This is in the lower half of the industry: BN underperforms 61.73% of its industry peers.
- BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.36% | ||
| PM (TTM) | 1.12% | ||
| GM | 37.79% |
OM growth 3Y4.81%
OM growth 5Y5.87%
PM growth 3Y-52.22%
PM growth 5Y-32.46%
GM growth 3Y8.55%
GM growth 5Y6.54%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, BN has less shares outstanding
- The number of shares outstanding for BN remains at a similar level compared to 5 years ago.
- BN has a worse debt/assets ratio than last year.
2.2 Solvency
- A Debt/Equity ratio of 5.56 is on the high side and indicates that BN has dependencies on debt financing.
- BN has a worse Debt to Equity ratio (5.56) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.16 indicates that BN should not have too much problems paying its short term obligations.
- BN has a worse Current ratio (1.16) than 66.67% of its industry peers.
- BN has a Quick Ratio of 1.01. This is a normal value and indicates that BN is financially healthy and should not expect problems in meeting its short term obligations.
- BN's Quick ratio of 1.01 is on the low side compared to the rest of the industry. BN is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.66%.
- Measured over the past years, BN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.12% on average per year.
- BN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.36%.
- Measured over the past years, BN shows a small growth in Revenue. The Revenue has been growing by 4.86% on average per year.
EPS 1Y (TTM)0.66%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-18.36%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%-8.27%
3.2 Future
- Based on estimates for the next years, BN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.90% on average per year.
- Based on estimates for the next years, BN will show a very strong growth in Revenue. The Revenue will grow by 31.86% on average per year.
EPS Next Y-3.17%
EPS Next 2Y6.81%
EPS Next 3Y11.9%
EPS Next 5YN/A
Revenue Next Year18.39%
Revenue Next 2Y40.88%
Revenue Next 3Y31.86%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- Based on the Price/Earnings ratio of 18.41, the valuation of BN can be described as rather expensive.
- Based on the Price/Earnings ratio, BN is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
- BN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.49, the valuation of BN can be described as correct.
- Based on the Price/Forward Earnings ratio, BN is valued a bit cheaper than 64.20% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, BN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y6.81%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
- BN has a Yearly Dividend Yield of 7.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.62, BN pays a bit more dividend than its industry peers.
- BN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.34% |
5.2 History
- The dividend of BN decreases each year by -3.57%.
- BN has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of BN decreased recently.
Dividend Growth(5Y)-3.57%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- BN pays out 84.48% of its income as dividend. This is not a sustainable payout ratio.
DP84.48%
EPS Next 2Y6.81%
EPS Next 3Y11.9%
BROOKFIELD CORP / BN.CA FAQ
What is the ChartMill fundamental rating of BROOKFIELD CORP (BN.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BN.CA.
What is the valuation status for BN stock?
ChartMill assigns a valuation rating of 2 / 10 to BROOKFIELD CORP (BN.CA). This can be considered as Overvalued.
How profitable is BROOKFIELD CORP (BN.CA) stock?
BROOKFIELD CORP (BN.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of BROOKFIELD CORP (BN.CA) stock?
The Price/Earnings (PE) ratio for BROOKFIELD CORP (BN.CA) is 18.41 and the Price/Book (PB) ratio is 2.48.
What is the earnings growth outlook for BROOKFIELD CORP?
The Earnings per Share (EPS) of BROOKFIELD CORP (BN.CA) is expected to decline by -3.17% in the next year.