BROOKFIELD CORP (BN)
CA11271J1075 - Common Stock
We assign a fundamental rating of 3 out of 10 to BN. BN was compared to 218 industry peers in the Capital Markets industry. BN may be in some trouble as it scores bad on both profitability and health. 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.
In the past year BN had a positive cash flow from operations.
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
BN has a Return On Assets of 0.18%. This is in the lower half of the industry: BN underperforms 77.21% of its industry peers.
BN's Return On Equity of 2.00% is on the low side compared to the rest of the industry. BN is outperformed by 73.49% of its industry peers.
With a Return On Invested Capital value of 3.72%, BN perfoms like the industry average, outperforming 44.65% of the companies in the same industry.
BN had an Average Return On Invested Capital over the past 3 years of 3.94%. This is significantly below the industry average of 17.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 2% | ||
| ROIC | 3.72% |
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 has a worse Profit Margin (0.95%) than 75.81% of its industry peers.
In the last couple of years the Profit Margin of BN has declined.
BN's Operating Margin of 21.24% is in line compared to the rest of the industry. BN outperforms 41.86% of its industry peers.
BN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.84%, BN is doing worse than 72.56% of the companies in the same industry.
BN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.24% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.84% |
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
Compared to 1 year ago, BN has less shares outstanding
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
BN has an Altman-Z score of 0.48. This is a bad value and indicates that BN is not financially healthy and even has some risk of bankruptcy.
BN's Altman-Z score of 0.48 is on the low side compared to the rest of the industry. BN is outperformed by 66.05% of its industry peers.
A Debt/Equity ratio of 5.30 is on the high side and indicates that BN has dependencies on debt financing.
The Debt to Equity ratio of BN (5.30) is worse than 85.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.87 indicates that BN may have some problems paying its short term obligations.
BN has a Current ratio of 0.87. This is in the lower half of the industry: BN underperforms 60.00% of its industry peers.
BN has a Quick Ratio of 0.87. 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 Quick ratio of 0.67. This is in the lower half of the industry: BN underperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.08% over the past year.
The Earnings Per Share has been growing slightly by 5.73% on average over the past years.
Looking at the last year, BN shows a small growth in Revenue. The Revenue has grown by 0.34% in the last year.
BN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.06% yearly.
EPS 1Y (TTM)76.08%
EPS 3YN/A
EPS 5Y5.73%
EPS Q2Q%80%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Sales Q2Q%-2.61%
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 16.82% yearly.
BN is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -37.36% yearly.
EPS Next Y23.91%
EPS Next 2Y19.69%
EPS Next 3Y16.82%
EPS Next 5YN/A
Revenue Next Year-82.97%
Revenue Next 2Y-53.32%
Revenue Next 3Y-37.36%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.64, BN is valued correctly.
BN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.20, BN is valued rather cheaply.
A Price/Forward Earnings ratio of 12.41 indicates a correct valuation of BN.
The rest of the industry has a similar Price/Forward Earnings ratio as BN.
BN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BN is valued cheaply inside the industry as 84.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
BN's 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 16.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)2.55
EPS Next 2Y19.69%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
BN has a yearly dividend return of 0.59%, which is pretty low.
BN's Dividend Yield is slightly below the industry average, which is at 8.73.
With a Dividend Yield of 0.59, BN pays less dividend than the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of BN decreases each year by -5.12%.
BN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
69.76% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
DP69.76%
EPS Next 2Y19.69%
EPS Next 3Y16.82%
BROOKFIELD CORP
NYSE:BN (11/4/2024, 8:04:01 PM)
After market: 53.86 0 (0%)53.86
+0.72 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap88.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.61
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.24% | ||
| PM (TTM) | 0.95% | ||
| GM | 15.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)76.08%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y23.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.34%
Revenue growth 3Y15.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y