BROOKFIELD CORP (BN) Stock Fundamental Analysis
NYSE:BN - New York Stock Exchange, Inc. - CA11271J1075 - Common Stock - Currency: USD
Taking everything into account, BN scores 3 out of 10 in our fundamental rating. BN was compared to 227 industry peers in the Capital Markets industry. Both the profitability and financial health of BN have multiple concerns. BN is not valued too expensively and it also shows a decent 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.
BN had positive earnings in 4 of the past 5 years.
BN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BN has a Return On Assets of 0.15%. This is in the lower half of the industry: BN underperforms 74.89% of its industry peers.
BN's Return On Equity of 1.59% is on the low side compared to the rest of the industry. BN is outperformed by 73.13% of its industry peers.
BN has a Return On Invested Capital (3.72%) which is in line with its industry peers.
BN had an Average Return On Invested Capital over the past 3 years of 3.59%. This is below the industry average of 7.09%.
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 74.01% of its industry peers.
BN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.52%, BN is in line with its industry, outperforming 44.93% of the companies in the same industry.
BN's Operating Margin has improved in the last couple of years.
BN has a Gross Margin of 18.62%. This is in the lower half of the industry: BN underperforms 68.72% 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.
BN has more shares outstanding than it did 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 in the lower half of the industry: BN underperforms 64.76% of its industry peers.
A Debt/Equity ratio of 5.26 is on the high side and indicates that BN has dependencies on debt financing.
BN's Debt to Equity ratio of 5.26 is on the low side compared to the rest of the industry. BN is outperformed by 83.70% 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.
BN has a worse Current ratio (0.84) than 62.11% 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.
BN's Quick ratio of 0.66 is on the low side compared to the rest of the industry. BN is outperformed by 68.28% of its industry peers.
| 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.
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
Based on estimates for the next years, BN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.72% on average per year.
The Revenue is expected to grow by 20.21% on average over the next years. This is a very strong growth
EPS Next Y-0.27%
EPS Next 2Y9.91%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year24.4%
Revenue Next 2Y19.64%
Revenue Next 3Y20.21%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 13.41, the valuation of BN can be described as correct.
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 28.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.45, the valuation of BN can be described as correct.
BN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.65. BN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BN is valued cheaper than 86.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
BN's earnings are expected to grow with 14.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y9.91%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 8.41, BN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, BN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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
87.94% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
DP87.94%
EPS Next 2Y9.91%
EPS Next 3Y14.72%
53.25
+0.33 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.84%
Inst Owner Change-0.01%
Ins Owners10.91%
Ins Owner ChangeN/A
Market Cap87.69B
Analysts76.67
Price Target69.51 (30.54%)
Short Float %0.87%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)0%
PT rev (3m)8.16%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-2.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 13.45 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 15.13 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.05 |
EPS(TTM)3.97
EY7.46%
EPS(NY)3.96
Fwd EY7.44%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)3.52
OCFY6.61%
SpS55.32
BVpS28.22
TBVpS-15.64
PEG (NY)N/A
PEG (5Y)0.74
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 Y-0.27%
EPS Next 2Y9.91%
EPS Next 3Y14.72%
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 Year302.26%
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