Brookfield Asset Management Ltd.
Brookfield Asset Management Ltd. Fundamental Analysis
Brookfield Asset Management Ltd. (BAM.TO) shows moderate financial fundamentals with a PE ratio of 30.34, profit margin of 50.71%, and ROE of 28.97%. The company generates $4.9B in annual revenue with weak year-over-year growth of -2.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BAM.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBAM.TO demonstrates superior asset utilization.
Valuation Score
WeakBAM.TO trades at a premium to fair value.
Growth Score
ModerateBAM.TO shows steady but slowing expansion.
Financial Health Score
ModerateBAM.TO shows balanced financial health with some risks.
Profitability Score
ExcellentBAM.TO achieves industry-leading margins.
Key Financial Metrics
Is BAM.TO Expensive or Cheap?
P/E Ratio
BAM.TO trades at 30.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BAM.TO's PEG of 2.36 indicates potential overvaluation.
Price to Book
The market values Brookfield Asset Management Ltd. at 8.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.62 times EBITDA. This signals the market has high growth expectations.
How Well Does BAM.TO Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Asset Management Ltd. keeps $50.71 as profit after all expenses.
Operating Margin
Core operations generate 57.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.97 in profit for every $100 of shareholder equity.
ROA
Brookfield Asset Management Ltd. generates $14.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Asset Management Ltd. generates strong operating cash flow of $1.75B, reflecting robust business health.
Free Cash Flow
Brookfield Asset Management Ltd. generates strong free cash flow of $1.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.08 in free cash annually.
FCF Yield
BAM.TO converts 2.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How BAM.TO Stacks Against Its Sector Peers
| Metric | BAM.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.34 | 18.94 | Worse (Expensive) |
| ROE | 28.97% | 846.00% | Weak |
| Net Margin | 50.71% | 4054.00% | Weak |
| Debt/Equity | 0.33 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 660.05 | Weak Liquidity |
| ROA | 14.60% | -24865.00% (disorted) | Strong |
BAM.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Asset Management Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.17%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
11.48%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
121.06%
Industry Style: Value, Dividend, Cyclical
High Growth