Brookfield Corporation
Brookfield Corporation Fundamental Analysis
Brookfield Corporation (BN.TO) shows weak financial fundamentals with a PE ratio of 74.45, profit margin of 1.73%, and ROE of 2.83%. The company generates $76.2B in annual revenue with weak year-over-year growth of -10.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -8.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakBN.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakBN.TO trades at a premium to fair value.
Growth Score
WeakBN.TO faces weak or negative growth trends.
Financial Health Score
WeakBN.TO carries high financial risk with limited liquidity.
Profitability Score
WeakBN.TO struggles to sustain strong margins.
Key Financial Metrics
Is BN.TO Expensive or Cheap?
P/E Ratio
BN.TO trades at 74.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BN.TO's PEG of 10.55 indicates potential overvaluation.
Price to Book
The market values Brookfield Corporation at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.41 times EBITDA. This is generally considered low.
How Well Does BN.TO Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Corporation keeps $1.73 as profit after all expenses.
Operating Margin
Core operations generate 23.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.83 in profit for every $100 of shareholder equity.
ROA
Brookfield Corporation generates $0.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Corporation produces operating cash flow of $9.74B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield Corporation generates weak or negative free cash flow of $-2.81B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.25 in free cash annually.
FCF Yield
BN.TO converts -2.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How BN.TO Stacks Against Its Sector Peers
| Metric | BN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.45 | 18.94 | Worse (Expensive) |
| ROE | 2.83% | 846.00% | Weak |
| Net Margin | 1.73% | 4054.00% | Weak |
| Debt/Equity | 5.42 | 0.89 | Weak (High Leverage) |
| Current Ratio | 0.00 | 660.05 | Weak Liquidity |
| ROA | 0.25% | -24865.00% (disorted) | Weak |
BN.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.89%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-78.05%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
6.97%
Industry Style: Value, Dividend, Cyclical
Growing