BROOKFIELD CORP (BN) Stock Fundamental Analysis
NYSE:BN - New York Stock Exchange, Inc. - CA11271J1075 - Common Stock - Currency: USD
Overall BN gets a fundamental rating of 3 out of 10. We evaluated BN against 225 industry peers in the Capital Markets industry. Both the profitability and financial health of BN have multiple concerns. 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.
BN had a positive operating cash flow in the past year.
Of the past 5 years BN 4 years were profitable.
Of the past 5 years BN 4 years had a positive operating cash flow.
1.2 Ratios
BN has a worse Return On Assets (0.15%) than 75.34% of its industry peers.
With a Return On Equity value of 1.59%, BN is not doing good in the industry: 73.06% of the companies in the same industry are doing better.
BN has a Return On Invested Capital (3.72%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BN is below the industry average of 6.81%.
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 in the lower half of the industry: BN underperforms 73.97% 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 45.21% of its industry peers.
BN's Operating Margin has improved in the last couple of years.
BN has a worse Gross Margin (18.62%) than 72.15% of its industry peers.
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
The number of shares outstanding for BN has been increased compared to 1 year ago.
Compared to 5 years ago, BN has more shares outstanding
BN has a better debt/assets ratio than last year.
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 doing worse than 68.95% of the companies in the same industry.
A Debt/Equity ratio of 5.26 is on the high side and indicates that BN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.26, BN is doing worse than 85.84% of the companies in the same industry.
| 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 61.19% 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: 67.58% 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 31.02%, which is quite impressive.
The Earnings Per Share has been growing by 18.12% on average over the past years. This is quite good.
Looking at the last year, BN shows a very negative growth in Revenue. The Revenue has decreased by -10.34% in the last year.
The Revenue has been growing slightly by 4.86% on average over the past years.
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 20.00% yearly.
EPS Next Y0.46%
EPS Next 2Y10.14%
EPS Next 3Y16.28%
EPS Next 5YN/A
Revenue Next Year24.65%
Revenue Next 2Y19.63%
Revenue Next 3Y20%
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.
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 correctly with a Price/Earnings ratio of 14.26.
Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
BN is valuated cheaply when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.19, which indicates a correct valuation of BN.
BN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.66. BN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BN is valued cheaply inside the industry as 85.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BN's earnings are expected to grow with 16.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)31.17
PEG (5Y)0.79
EPS Next 2Y10.14%
EPS Next 3Y16.28%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 8.75, BN is paying slightly less dividend.
With a Dividend Yield of 0.53, BN pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
The dividend of BN decreased 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%
56.6
-1.34 (-2.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.84%
Inst Owner Change0.29%
Ins Owners10.91%
Ins Owner ChangeN/A
Market Cap93.18B
Analysts76.67
Price Target68.34 (20.74%)
Short Float %0.54%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.39
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)2.49%
PT rev (3m)5.94%
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)6.44%
Revenue NY rev (3m)6.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 14.19 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 16.08 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.3 |
EPS(TTM)3.97
EY7.01%
EPS(NY)3.99
Fwd EY7.05%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)3.52
OCFY6.22%
SpS55.34
BVpS28.23
TBVpS-15.65
PEG (NY)31.17
PEG (5Y)0.79
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 | 0.48 |
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 Year24.65%
Revenue Next 2Y19.63%
Revenue Next 3Y20%
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