BROOKFIELD CORP (BN.CA) Stock Fundamental Analysis
TSX:BN - Toronto Stock Exchange - CA11271J1075 - Common Stock - Currency: CAD
BN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Capital Markets industry. There are concerns on the financial health of BN while its profitability can be described as average. BN is valied quite expensively at the moment, while it does show a decent growth rate.
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
With a Return On Assets value of 0.09%, BN is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
BN has a Return On Equity of 0.99%. This is in the lower half of the industry: BN underperforms 65.06% of its industry peers.
With a Return On Invested Capital value of 3.48%, BN perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
BN had an Average Return On Invested Capital over the past 3 years of 3.69%. This is below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.99% | ||
| ROIC | 3.48% |
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
With a Profit Margin value of 0.55%, BN is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
BN's Profit Margin has declined in the last couple of years.
BN has a Operating Margin (24.95%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BN has grown nicely.
BN has a Gross Margin of 35.04%. This is comparable to the rest of the industry: BN outperforms 40.96% of its industry peers.
BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.95% | ||
| PM (TTM) | 0.55% | ||
| GM | 35.04% |
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
The number of shares outstanding for BN has been reduced compared to 1 year ago.
Compared to 5 years ago, BN has about the same amount of shares outstanding.
The debt/assets ratio for BN is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 5.43 is on the high side and indicates that BN has dependencies on debt financing.
BN has a Debt to Equity ratio of 5.43. This is amonst the worse of the industry: BN underperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BN has a Current Ratio of 1.11. This is a normal value and indicates that BN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, BN is doing worse than 67.47% of the companies in the same industry.
BN has a Quick Ratio of 1.11. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
BN has a Quick ratio of 0.96. This is in the lower half of the industry: BN underperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.71%, which is quite impressive.
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.
The Revenue for BN has decreased by -15.17% in the past year. This is quite bad
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)35.71%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%1284.57%
3.2 Future
BN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.32% yearly.
BN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.22% yearly.
EPS Next Y-0.22%
EPS Next 2Y9.3%
EPS Next 3Y11.32%
EPS Next 5YN/A
Revenue Next Year26.97%
Revenue Next 2Y19.63%
Revenue Next 3Y20.22%
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 15.39, the valuation of BN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as BN.
The average S&P500 Price/Earnings ratio is at 27.45. BN is valued slightly cheaper when compared to this.
BN is valuated correctly with a Price/Forward Earnings ratio of 13.55.
Based on the Price/Forward Earnings ratio, BN is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, BN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
62.65% of the companies in the same industry are more expensive than BN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y9.3%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 5.91%, which is a nice return.
Compared to an average industry Dividend Yield of 5.13, BN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of BN decreases each year by -3.57%.
BN has been paying a dividend for at least 10 years, so it has a reliable track record.
BN has decreased its dividend recently.
Dividend Growth(5Y)-3.57%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
151.35% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
DP151.35%
EPS Next 2Y9.3%
EPS Next 3Y11.32%
TSX:BN (7/4/2025, 7:00:00 PM)
87.39
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.19%
Inst Owner ChangeN/A
Ins Owners10.27%
Ins Owner ChangeN/A
Market Cap143.98B
Analysts76.67
Price Target93.59 (7.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend0.59
Dividend Growth(5Y)-3.57%
DP151.35%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)6.19%
Max EPS beat(2)11.75%
EPS beat(4)3
Avg EPS beat(4)21.57%
Min EPS beat(4)-0.3%
Max EPS beat(4)68.65%
EPS beat(8)7
Avg EPS beat(8)14.69%
EPS beat(12)9
Avg EPS beat(12)-3.55%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1228.35%
Min Revenue beat(2)1136.66%
Max Revenue beat(2)1320.03%
Revenue beat(4)4
Avg Revenue beat(4)1410.47%
Min Revenue beat(4)1136.66%
Max Revenue beat(4)1712.11%
Revenue beat(8)8
Avg Revenue beat(8)707.05%
Revenue beat(12)12
Avg Revenue beat(12)490.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.58%
PT rev (3m)-6.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.55%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.31 | ||
| P/FCF | N/A | ||
| P/OCF | 12.09 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)5.68
EY6.5%
EPS(NY)6.45
Fwd EY7.38%
FCF(TTM)-11.75
FCFYN/A
OCF(TTM)7.23
OCFY8.27%
SpS66.86
BVpS37.34
TBVpS-23.91
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.99% | ||
| ROCE | 4.67% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 4.35% | ||
| OM | 24.95% | ||
| PM (TTM) | 0.55% | ||
| GM | 35.04% | ||
| FCFM | N/A |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.69%
ROIC(5y)3.45%
ROICexc(3y)3.83%
ROICexc(5y)3.59%
ROICexgc(3y)4.77%
ROICexgc(5y)4.39%
ROCE(3y)4.96%
ROCE(5y)4.64%
ROICexcg growth 3Y2.5%
ROICexcg growth 5Y4.8%
ROICexc growth 3Y1.58%
ROICexc growth 5Y3.93%
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%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.21 | ||
| Cap/Depr | 236.74% | ||
| Cap/Sales | 28.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)209.51%
Cap/Depr(5y)213.66%
Cap/Sales(3y)20.38%
Cap/Sales(5y)19.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.71%
EPS 3Y-49.52%
EPS 5Y18.12%
EPS Q2Q%27.27%
EPS Next Y-0.22%
EPS Next 2Y9.3%
EPS Next 3Y11.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%1284.57%
Revenue Next Year26.97%
Revenue Next 2Y19.63%
Revenue Next 3Y20.22%
Revenue Next 5YN/A
EBIT growth 1Y-4.56%
EBIT growth 3Y9.35%
EBIT growth 5Y11.02%
EBIT Next Year486.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.13%
OCF growth 3Y-1.38%
OCF growth 5Y3.07%