Brookfield Asset Management Ltd. Fundamental Analysis (NYSE: BAM)
Brookfield Asset Management Ltd. Fundamental Analysis (NYSE: BAM)
Brookfield Asset Management Ltd. (NYSE: BAM) shows strong financial fundamentals with a PE ratio of 27.45, profit margin of 51.60%, and ROE of 15.59%. The company generates $5.4B in annual revenue with strong year-over-year growth of 15.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.1/100 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's fundamental strength across five key dimensions:
Efficiency Score
WeakBAM struggles to generate sufficient returns from assets.
Valuation Score
ModerateBAM shows balanced valuation metrics.
Growth Score
ExcellentBAM delivers strong and consistent growth momentum.
Financial Health Score
ModerateBAM shows balanced financial health with some risks.
Profitability Score
ExcellentBAM achieves industry-leading margins.
Key Financial Metrics
Is BAM Expensive or Cheap?
P/E Ratio
BAM trades at 27.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BAM's PEG of 1.72 indicates fair valuation.
Price to Book
The market values Brookfield Asset Management Ltd. at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -46.46 times EBITDA. This is generally considered low.
How Well Does BAM Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Asset Management Ltd. keeps $51.60 as profit after all expenses.
Operating Margin
Core operations generate 60.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.59 in profit for every $100 of shareholder equity.
ROA
Brookfield Asset Management Ltd. generates $0.53 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 $2.17B, reflecting robust business health.
Free Cash Flow
Brookfield Asset Management Ltd. generates strong free cash flow of $2.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.36 in free cash annually.
FCF Yield
BAM converts 2.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How BAM Stacks Against Its Sector Peers
| Metric | BAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.45 | 20.91 | Worse (Expensive) |
| ROE | 15.59% | 646.00% | Weak |
| Net Margin | 51.60% | -1520.00% (disorted) | Strong |
| Debt/Equity | 5.69 | 0.88 | Weak (High Leverage) |
| Current Ratio | 1.34 | 833.48 | Neutral |
| ROA | 0.53% | -577.00% (disorted) | Weak |
BAM outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, 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
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining