BROOKFIELD CORP (BN.CA) Stock Fundamental Analysis
TSX:BN - Toronto Stock Exchange - CA11271J1075 - Common Stock - Currency: CAD
Taking everything into account, BN scores 3 out of 10 in our fundamental rating. BN was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BN was profitable.
BN had a positive operating cash flow in the past year.
Of the past 5 years BN 4 years were profitable.
In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.15%, BN is not doing good in the industry: 68.92% of the companies in the same industry are doing better.
BN has a Return On Equity of 1.59%. This is in the lower half of the industry: BN underperforms 67.57% of its industry peers.
With a Return On Invested Capital value of 4.03%, BN perfoms like the industry average, outperforming 40.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BN is significantly below the industry average of 9.07%.
The last Return On Invested Capital (4.03%) for BN is above the 3 year average (3.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 1.59% | ||
| ROIC | 4.03% |
ROA(3y)0.54%
ROA(5y)0.47%
ROE(3y)4.9%
ROE(5y)4.3%
ROIC(3y)3.94%
ROIC(5y)3.62%
1.3 Margins
BN's Profit Margin of 0.81% is on the low side compared to the rest of the industry. BN is outperformed by 66.22% of its industry peers.
In the last couple of years the Profit Margin of BN has declined.
BN's Operating Margin of 24.52% is in line compared to the rest of the industry. BN outperforms 47.30% of its industry peers.
In the last couple of years the Operating Margin of BN has grown nicely.
Looking at the Gross Margin, with a value of 18.62%, BN is doing worse than 67.57% of the companies in the same industry.
BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.52% | ||
| PM (TTM) | 0.81% | ||
| GM | 18.62% |
OM growth 3Y10.13%
OM growth 5Y6.12%
PM growth 3YN/A
PM growth 5Y-30.16%
GM growth 3Y1.18%
GM growth 5Y6.07%
2. Health
2.1 Basic Checks
BN has less shares outstanding than it did 1 year ago.
BN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that BN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.48, BN is in line with its industry, outperforming 50.00% of the companies in the same industry.
BN has a Debt/Equity ratio of 5.26. This is a high value indicating a heavy dependency on external financing.
BN has a Debt to Equity ratio of 5.26. This is amonst the worse of the industry: BN underperforms 93.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.84 indicates that BN may have some problems paying its short term obligations.
BN's Current ratio of 0.84 is on the low side compared to the rest of the industry. BN is outperformed by 75.68% of its industry peers.
BN has a Quick Ratio of 0.84. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, BN is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
BN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.39%, which is quite impressive.
Measured over the past 5 years, BN shows a small growth in Earnings Per Share. The EPS has been growing by 5.73% on average per year.
BN shows a decrease in Revenue. In the last year, the revenue decreased by -4.73%.
Measured over the past years, BN shows a quite strong growth in Revenue. The Revenue has been growing by 11.06% on average per year.
EPS 1Y (TTM)92.39%
EPS 3YN/A
EPS 5Y5.73%
EPS Q2Q%15.07%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Sales Q2Q%-15.62%
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 17.50% on average per year.
Based on estimates for the next years, BN will show a very negative growth in Revenue. The Revenue will decrease by -38.48% on average per year.
EPS Next Y30.79%
EPS Next 2Y15.61%
EPS Next 3Y17.5%
EPS Next 5YN/A
Revenue Next Year-83.18%
Revenue Next 2Y-55.75%
Revenue Next 3Y-38.48%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BN is valuated correctly with a Price/Earnings ratio of 15.35.
Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.47. BN is valued slightly cheaper when compared to this.
BN is valuated correctly with a Price/Forward Earnings ratio of 14.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BN indicates a somewhat cheap valuation: BN is cheaper than 60.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BN to the average of the S&P500 Index (92.74), we can say BN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
BN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BN's earnings are expected to grow with 17.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)2.68
EPS Next 2Y15.61%
EPS Next 3Y17.5%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 3.26, BN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, BN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of BN decreases each year by -5.12%.
BN has paid a dividend for at least 10 years, which is a reliable track record.
BN has decreased its dividend recently.
Dividend Growth(5Y)-5.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BN pays out 87.94% of its income as dividend. This is not a sustainable payout ratio.
DP87.94%
EPS Next 2Y15.61%
EPS Next 3Y17.5%
BROOKFIELD CORP
TSX:BN (2/4/2025, 7:00:00 PM)
83.79
-2.6 (-3.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners64.33%
Inst Owner ChangeN/A
Ins Owners10.96%
Ins Owner ChangeN/A
Market Cap138.02B
Analysts77.78
Price Target95.79 (14.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.12%
DP87.94%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.18%
Min EPS beat(2)-0.3%
Max EPS beat(2)68.65%
EPS beat(4)3
Avg EPS beat(4)20.85%
Min EPS beat(4)-0.3%
Max EPS beat(4)68.65%
EPS beat(8)6
Avg EPS beat(8)-3.67%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1592.59%
Min Revenue beat(2)1473.07%
Max Revenue beat(2)1712.11%
Revenue beat(4)4
Avg Revenue beat(4)798.76%
Min Revenue beat(4)0.84%
Max Revenue beat(4)1712.11%
Revenue beat(8)8
Avg Revenue beat(8)413.33%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.74%
PT rev (3m)23.22%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)0%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 14.36 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 16.53 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.32 |
EPS(TTM)5.46
EY6.52%
EPS(NY)5.84
Fwd EY6.97%
FCF(TTM)-12.24
FCFYN/A
OCF(TTM)5.07
OCFY6.05%
SpS79.7
BVpS40.66
TBVpS-22.54
PEG (NY)0.5
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 1.59% | ||
| ROCE | 5% | ||
| ROIC | 4.03% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.97% | ||
| OM | 24.52% | ||
| PM (TTM) | 0.81% | ||
| GM | 18.62% | ||
| FCFM | N/A |
ROA(3y)0.54%
ROA(5y)0.47%
ROE(3y)4.9%
ROE(5y)4.3%
ROIC(3y)3.94%
ROIC(5y)3.62%
ROICexc(3y)4.09%
ROICexc(5y)3.75%
ROICexgc(3y)5.05%
ROICexgc(5y)4.55%
ROCE(3y)4.88%
ROCE(5y)4.48%
ROICexcg growth 3Y16.62%
ROICexcg growth 5Y7.18%
ROICexc growth 3Y14.15%
ROICexc growth 5Y5.45%
OM growth 3Y10.13%
OM growth 5Y6.12%
PM growth 3YN/A
PM growth 5Y-30.16%
GM growth 3Y1.18%
GM growth 5Y6.07%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.62 | ||
| Cap/Depr | 203.03% | ||
| Cap/Sales | 21.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 18.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.48 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)227.2%
Cap/Depr(5y)208.74%
Cap/Sales(3y)19.73%
Cap/Sales(5y)17.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.39%
EPS 3YN/A
EPS 5Y5.73%
EPS Q2Q%15.07%
EPS Next Y30.79%
EPS Next 2Y15.61%
EPS Next 3Y17.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Sales Q2Q%-15.62%
Revenue Next Year-83.18%
Revenue Next 2Y-55.75%
Revenue Next 3Y-38.48%
Revenue Next 5YN/A
EBIT growth 1Y25.89%
EBIT growth 3Y26.86%
EBIT growth 5Y17.86%
EBIT Next Year754.34%
EBIT Next 3Y61.94%
EBIT Next 5YN/A
FCF growth 1Y-32.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-28.11%
OCF growth 3Y-8.27%
OCF growth 5Y4.59%