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BROOKFIELD CORP (BN) Stock Fundamental Analysis

NYSE:BN - New York Stock Exchange, Inc. - CA11271J1075 - Common Stock - Currency: USD

62.05  +1.59 (+2.63%)

After market: 62.4 +0.35 (+0.56%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to BN. BN was compared to 222 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
Each year in the past 5 years BN had a positive operating cash flow.
BN Yearly Net Income VS EBIT VS OCF VS FCFBN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B -10B 20B

1.2 Ratios

BN has a worse Return On Assets (0.15%) than 76.96% of its industry peers.
The Return On Equity of BN (1.59%) is worse than 75.12% of its industry peers.
BN has a Return On Invested Capital (4.03%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BN is below the industry average of 6.67%.
The 3 year average ROIC (3.94%) for BN is below the current ROIC(4.03%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.15%
ROE 1.59%
ROIC 4.03%
ROA(3y)0.54%
ROA(5y)0.47%
ROE(3y)4.9%
ROE(5y)4.3%
ROIC(3y)3.94%
ROIC(5y)3.62%
BN Yearly ROA, ROE, ROICBN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 4 6 8 10

1.3 Margins

BN has a worse Profit Margin (0.81%) than 75.12% of its industry peers.
BN's Profit Margin has declined in the last couple of years.
BN has a Operating Margin (24.52%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BN has grown nicely.
Looking at the Gross Margin, with a value of 18.62%, BN is doing worse than 72.81% of the companies in the same industry.
In the last couple of years the Gross Margin of BN has grown nicely.
Industry RankSector Rank
OM 24.52%
PM (TTM) 0.81%
GM 18.62%
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%
BN Yearly Profit, Operating, Gross MarginsBN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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1

2. Health

2.1 Basic Checks

Compared to 1 year ago, BN has less shares outstanding
Compared to 5 years ago, BN has more shares outstanding
BN has a better debt/assets ratio than last year.
BN Yearly Shares OutstandingBN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
BN Yearly Total Debt VS Total AssetsBN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B

2.2 Solvency

BN has an Altman-Z score of 0.49. This is a bad value and indicates that BN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.49, BN is not doing good in the industry: 68.66% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.26 is on the high side and indicates that BN has dependencies on debt financing.
The Debt to Equity ratio of BN (5.26) is worse than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.26
Debt/FCF N/A
Altman-Z 0.49
ROIC/WACCN/A
WACCN/A
BN Yearly LT Debt VS Equity VS FCFBN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50B 100B 150B

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.
Looking at the Current ratio, with a value of 0.84, BN is doing worse than 60.83% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that BN may have some problems paying its short term obligations.
BN has a worse Quick ratio (0.66) than 67.28% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.66
BN Yearly Current Assets VS Current LiabilitesBN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B 100B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 92.39% over the past year.
BN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.73% yearly.
Looking at the last year, BN shows a decrease in Revenue. The Revenue has decreased by -4.73% in the last year.
Measured over the past years, BN shows a quite strong growth in Revenue. The Revenue has been growing by 11.06% on average per year.
EPS 1Y (TTM)92.39%
EPS 3YN/A
EPS 5Y5.73%
EPS Q2Q%15.07%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Sales Q2Q%-15.62%

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 17.71% yearly.
The Revenue is expected to decrease by -38.48% on average over the next years. This is quite bad
EPS Next Y30.79%
EPS Next 2Y15.95%
EPS Next 3Y17.71%
EPS Next 5YN/A
Revenue Next Year-83.18%
Revenue Next 2Y-55.75%
Revenue Next 3Y-38.48%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
BN Yearly Revenue VS EstimatesBN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B
BN Yearly EPS VS EstimatesBN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3 4

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.37, the valuation of BN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as BN.
The average S&P500 Price/Earnings ratio is at 28.51. BN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.23, which indicates a correct valuation of BN.
BN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BN to the average of the S&P500 Index (93.88), we can say BN is valued rather cheaply.
Industry RankSector Rank
PE 16.37
Fwd PE 15.23
BN Price Earnings VS Forward Price EarningsBN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BN is valued cheaply inside the industry as 86.64% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.44
BN Per share dataBN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

The 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 17.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)2.86
EPS Next 2Y15.95%
EPS Next 3Y17.71%

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1

5. Dividend

5.1 Amount

BN has a yearly dividend return of 0.50%, which is pretty low.
BN's Dividend Yield is slightly below the industry average, which is at 9.42.
Compared to an average S&P500 Dividend Yield of 2.27, BN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.5%

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.
The dividend of BN decreased recently.
Dividend Growth(5Y)-5.12%
Div Incr Years1
Div Non Decr Years1
BN Yearly Dividends per shareBN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

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 2Y15.95%
EPS Next 3Y17.71%
BN Yearly Income VS Free CF VS DividendBN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5B -10B
BN Dividend Payout.BN Dividend Payout, showing the Payout Ratio.BN Dividend Payout.PayoutRetained Earnings

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BROOKFIELD CORP

NYSE:BN (1/30/2025, 8:07:36 PM)

After market: 62.4 +0.35 (+0.56%)

62.05

+1.59 (+2.63%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners64.33%
Inst Owner Change-0.07%
Ins Owners10.96%
Ins Owner ChangeN/A
Market Cap102.21B
Analysts77.78
Price Target64.26 (3.56%)
Short Float %0.65%
Short Ratio4.14
Dividend
Industry RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.39
Dividend Growth(5Y)-5.12%
DP87.94%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-0.38%
PT rev (3m)16.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.89%
EPS NY rev (1m)0%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 16.37
Fwd PE 15.23
P/S 1.12
P/FCF N/A
P/OCF 17.64
P/B 2.2
P/tB N/A
EV/EBITDA 10.44
EPS(TTM)3.79
EY6.11%
EPS(NY)4.07
Fwd EY6.57%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)3.52
OCFY5.67%
SpS55.31
BVpS28.21
TBVpS-15.64
PEG (NY)0.53
PEG (5Y)2.86
Profitability
Industry RankSector Rank
ROA 0.15%
ROE 1.59%
ROCE 5%
ROIC 4.03%
ROICexc 4.14%
ROICexgc 4.97%
OM 24.52%
PM (TTM) 0.81%
GM 18.62%
FCFM N/A
ROA(3y)0.54%
ROA(5y)0.47%
ROE(3y)4.9%
ROE(5y)4.3%
ROIC(3y)3.94%
ROIC(5y)3.62%
ROICexc(3y)4.09%
ROICexc(5y)3.75%
ROICexgc(3y)5.05%
ROICexgc(5y)4.55%
ROCE(3y)4.88%
ROCE(5y)4.48%
ROICexcg growth 3Y16.62%
ROICexcg growth 5Y7.18%
ROICexc growth 3Y14.15%
ROICexc growth 5Y5.45%
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%
F-Score6
Asset Turnover0.18
Health
Industry RankSector 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 0.49
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)227.2%
Cap/Depr(5y)208.74%
Cap/Sales(3y)19.73%
Cap/Sales(5y)17.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.39%
EPS 3YN/A
EPS 5Y5.73%
EPS Q2Q%15.07%
EPS Next Y30.79%
EPS Next 2Y15.95%
EPS Next 3Y17.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y15.19%
Revenue growth 5Y11.06%
Sales Q2Q%-15.62%
Revenue Next Year-83.18%
Revenue Next 2Y-55.75%
Revenue Next 3Y-38.48%
Revenue Next 5YN/A
EBIT growth 1Y25.89%
EBIT growth 3Y26.86%
EBIT growth 5Y17.86%
EBIT Next Year754.34%
EBIT Next 3Y61.94%
EBIT Next 5YN/A
FCF growth 1Y-32.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-28.11%
OCF growth 3Y-8.27%
OCF growth 5Y4.59%