BROOKFIELD CORP (BN.CA) Stock Fundamental Analysis
TSX:BN - Toronto Stock Exchange - CA11271J1075 - Common Stock - Currency: CAD
Overall BN gets a fundamental rating of 3 out of 10. We evaluated BN 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
In the past year BN had a positive cash flow from operations.
BN had positive earnings in 4 of the past 5 years.
Of the past 5 years BN 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.15%, BN is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
BN's Return On Equity of 1.59% is in line compared to the rest of the industry. BN outperforms 40.48% of its industry peers.
BN's Return On Invested Capital of 3.72% is in line compared to the rest of the industry. BN outperforms 44.05% of its industry peers.
BN had an Average Return On Invested Capital over the past 3 years of 3.59%. This is significantly below the industry average of 8.66%.
The last Return On Invested Capital (3.72%) for BN is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 1.59% | ||
| ROIC | 3.72% |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.59%
ROIC(5y)3.39%
1.3 Margins
BN has a Profit Margin of 0.81%. This is comparable to the rest of the industry: BN outperforms 41.67% of its industry peers.
In the last couple of years the Profit Margin of BN has declined.
BN has a Operating Margin (24.52%) which is in line with its industry peers.
BN's Operating Margin has improved in the last couple of years.
BN has a Gross Margin (18.62%) which is comparable to the rest of the industry.
BN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.52% | ||
| PM (TTM) | 0.81% | ||
| GM | 18.62% |
OM growth 3Y4.81%
OM growth 5Y5.87%
PM growth 3Y-52.22%
PM growth 5Y-32.46%
GM growth 3Y-8.13%
GM growth 5Y-3.62%
2. Health
2.1 Basic Checks
BN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BN has been increased compared to 5 years ago.
BN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that BN is in the distress zone and has some risk of bankruptcy.
BN has a Altman-Z score of 0.47. This is comparable to the rest of the industry: BN outperforms 53.57% of its industry peers.
BN has a Debt/Equity ratio of 5.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BN (5.26) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BN has a Current 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 Current ratio value of 0.84, BN is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
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.
The Quick ratio of BN (0.66) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.02% over the past year.
BN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.12% yearly.
BN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.34%.
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)31.02%
EPS 3Y-50.15%
EPS 5Y18.12%
EPS Q2Q%21.69%
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%-20.77%
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 16.28% yearly.
BN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.21% yearly.
EPS Next Y0.46%
EPS Next 2Y10.14%
EPS Next 3Y16.28%
EPS Next 5YN/A
Revenue Next Year24.4%
Revenue Next 2Y19.64%
Revenue Next 3Y20.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue 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 13.16, BN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, BN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.09, the valuation of BN can be described as correct.
Based on the Price/Forward Earnings ratio, BN is valued a bit cheaper than 64.29% of the companies in the same industry.
BN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
BN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BN is cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BN's earnings are expected to grow with 16.28% in the coming years.
PEG (NY)28.77
PEG (5Y)0.73
EPS Next 2Y10.14%
EPS Next 3Y16.28%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.57%, which is pretty low.
BN's Dividend Yield is a higher than the industry average which is at 5.84.
With a Dividend Yield of 0.57, BN pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 2Y10.14%
EPS Next 3Y16.28%
TSX:BN (3/7/2025, 7:00:00 PM)
74.87
-0.35 (-0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.84%
Inst Owner ChangeN/A
Ins Owners10.91%
Ins Owner ChangeN/A
Market Cap123.25B
Analysts76.67
Price Target100.43 (34.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.56
Dividend Growth(5Y)-5.12%
DP87.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)4.85%
PT rev (3m)11.09%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 14.84 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.01 |
EPS(TTM)5.69
EY7.6%
EPS(NY)5.72
Fwd EY7.64%
FCF(TTM)-12.19
FCFYN/A
OCF(TTM)5.05
OCFY6.74%
SpS79.34
BVpS40.47
TBVpS-22.44
PEG (NY)28.77
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 1.59% | ||
| ROCE | 5% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 4.58% | ||
| OM | 24.52% | ||
| PM (TTM) | 0.81% | ||
| GM | 18.62% | ||
| FCFM | N/A |
ROA(3y)0.24%
ROA(5y)0.32%
ROE(3y)2.5%
ROE(5y)2.99%
ROIC(3y)3.59%
ROIC(5y)3.39%
ROICexc(3y)3.72%
ROICexc(5y)3.52%
ROICexgc(3y)4.6%
ROICexgc(5y)4.29%
ROCE(3y)4.82%
ROCE(5y)4.56%
ROICexcg growth 3Y-1.35%
ROICexcg growth 5Y2.42%
ROICexc growth 3Y-1.55%
ROICexc growth 5Y2%
OM growth 3Y4.81%
OM growth 5Y5.87%
PM growth 3Y-52.22%
PM growth 5Y-32.46%
GM growth 3Y-8.13%
GM growth 5Y-3.62%
F-Score7
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 | 0.47 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.02%
EPS 3Y-50.15%
EPS 5Y18.12%
EPS Q2Q%21.69%
EPS Next Y0.46%
EPS Next 2Y10.14%
EPS Next 3Y16.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y4.33%
Revenue growth 5Y4.86%
Sales Q2Q%-20.77%
Revenue Next Year24.4%
Revenue Next 2Y19.64%
Revenue Next 3Y20.21%
Revenue Next 5YN/A
EBIT growth 1Y25.89%
EBIT growth 3Y9.35%
EBIT growth 5Y11.02%
EBIT Next Year302.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-27.97%
OCF growth 3YN/A
OCF growth 5YN/A