Fact based stock research
Brookfield Asset Management (TSX:BAM)

CA1130041058

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Brookfield Asset Management stock research in summary

brookfield.com

ANALYSIS: With an Obermatt Combined Rank of 9 (worse than 91% compared with investment alternatives), Brookfield Asset Management (Asset Management & Custody, Canada) shares have lower financial characteristics compared with similar stocks. Shares of Brookfield Asset Management are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives), and are riskily financed (Safety Rank of 19, which means above-average debt burdens) but show above-average growth (Growth Rank of 51). ...read more

RECOMMENDATION: A Combined Rank of 9, is a sell recommendation based on Brookfield Asset Management's financial characteristics. As the company Brookfield Asset Management shows low value with an Obermatt Value Rank of 25 (75% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 51% of comparable companies (Obermatt Growth Rank is 51). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 19 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Brookfield Asset Management, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	25
Growth Rank	51
Safety Rank	19
Combined Rank	9

Country	Canada
Industry	Asset Management & Custody
Index	TSX Composite
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Brookfield Asset Management

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	85	46	25
GROWTH
GROWTH	38	23	67	51
SAFETY
SAFETY	10	21	91	19
SENTIMENT
SENTIMENT	n/a	90	71	^new
360° VIEW
360° VIEW	n/a	100	88	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Brookfield Asset Management is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	85	46	25
GROWTH
GROWTH	38	23	67	51
SAFETY
SAFETY	10	21	91	19
COMBINED
COMBINED	14	64	93	9

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Brookfield Asset Management the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), Brookfield Asset Management shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Brookfield Asset Management. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 64% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 37 which means that the stock price compared with what market professionals expect for future profits is higher than 63% of comparable companies, indicating a low value concerning Brookfield Asset Management's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 19 which means that the stock price compared with what market professionals expect for future profit levels is higher than 81% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 18 is also low. Compared with invested capital, the stock price is higher than for 82% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on Brookfield Asset Management's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Brookfield Asset Management? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Brookfield Asset Management only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	24	50	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	30	97	16	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	32	78	71	18
DIVIDEND YIELD
DIVIDEND YIELD	32	85	63	64
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	85	46	25

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Brookfield Asset Management; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), Brookfield Asset Management shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Brookfield Asset Management. Sales Growth has a rank of 85 which means that currently professionals expect the company to grow more than 85% of its competitors. Stock Returns are also above average with a rank of 75. But Capital Growth has only a rank of 27, which means that currently professionals expect the company to grow its invested capital less than 73% of its competitors. Profit Growth is also low, with a rank of only 28, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 75% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	30	100	85
PROFIT GROWTH
PROFIT GROWTH	58	13	58	28
CAPITAL GROWTH
CAPITAL GROWTH	n/a	60	1	27
STOCK RETURNS
STOCK RETURNS	72	71	85	75
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	38	23	67	51

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Brookfield Asset Management.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 19 (better than 19% compared with alternatives), the company Brookfield Asset Management has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Brookfield Asset Management is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Brookfield Asset Management and the other two below average. Leverage is at a rank of 78 meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors.Refinancing is at a rank of 17, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 83% of its competitors. Liquidity is at a rank of 15, meaning that the company generates less profit to service its debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 19 (worse than 81% compared with alternatives), Brookfield Asset Management has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Brookfield Asset Management are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Brookfield Asset Management and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	56	100	78
REFINANCING
REFINANCING	52	78	41	17
LIQUIDITY
LIQUIDITY	17	23	77	15
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	21	91	19

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Brookfield Asset Management and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	n/a	39	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	63	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	82	^new
MARKET PULSE
MARKET PULSE	n/a	82	55	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	71	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Brookfield Asset Management.
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