BROOKFIELD CORP (BN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BN - CA11271J1075 - Common Stock
63.86 CAD
-0.56 (-0.87%)
Taking everything into account, BN scores 3 out of 10 in our fundamental rating. BN was compared to 78 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.
- BN had positive earnings in 4 of the past 5 years.
- In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
- BN's Return On Assets of 0.16% is on the low side compared to the rest of the industry. BN is outperformed by 74.36% of its industry peers.
- Looking at the Return On Equity, with a value of 1.78%, BN is doing worse than 69.23% of the companies in the same industry.
- BN has a worse Return On Invested Capital (3.22%) than 60.26% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BN is significantly below the industry average of 10.50%.
| 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 Profit Margin of 1.12%. This is in the lower half of the industry: BN underperforms 71.79% of its industry peers.
- BN's Profit Margin has declined in the last couple of years.
- The Operating Margin of BN (26.36%) is worse than 62.82% of its industry peers.
- BN's Operating Margin has improved in the last couple of years.
- BN's Gross Margin of 37.79% is on the low side compared to the rest of the industry. BN is outperformed by 62.82% 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
- The number of shares outstanding for BN has been reduced compared to 1 year ago.
- BN has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BN has a worse debt to assets ratio.
2.2 Solvency
- BN has a Debt/Equity ratio of 5.56. This is a high value indicating a heavy dependency on external financing.
- BN has a worse Debt to Equity ratio (5.56) than 88.46% 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.
- The Current ratio of BN (1.16) is worse than 66.67% of its industry peers.
- A Quick Ratio of 1.01 indicates that BN should not have too much problems paying its short term obligations.
- BN has a Quick ratio of 1.01. This is in the lower half of the industry: BN underperforms 70.51% 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%.
- The Earnings Per Share has been growing by 18.12% on average over the past years. This is quite good.
- The Revenue for BN has decreased by -18.36% 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)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
- BN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.90% yearly.
- The Revenue is expected to grow by 31.99% on average over the next years. This is a very strong growth
EPS Next Y-3.17%
EPS Next 2Y6.81%
EPS Next 3Y11.9%
EPS Next 5YN/A
Revenue Next Year18.89%
Revenue Next 2Y41.07%
Revenue Next 3Y31.99%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- BN is valuated rather expensively with a Price/Earnings ratio of 18.35.
- Compared to the rest of the industry, the Price/Earnings ratio of BN indicates a slightly more expensive valuation: BN is more expensive than 66.67% of the companies listed in the same industry.
- BN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.46, the valuation of BN can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BN indicates a somewhat cheap valuation: BN is cheaper than 64.10% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, BN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
- 60.26% 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 | 12.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y6.81%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
- BN has a yearly dividend return of 0.77%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.74, BN has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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.
- 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 18.35 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.