-0.59 | -1.55%
BROOKFIELD ASSET MANAGEMENT's gross profit margin for the first quarter of its fiscal year 2013 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased.
At the same time, stockholders' equity ("net worth") has greatly increased by 39.77% from the same quarter last year.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 4951.0 | 4039.0 |
| EBITDA ($mil) | 1487.0 | 1129.0 |
| EBIT ($mil) | 1122.0 | 832.0 |
| Net Income ($mil) | 360.0 | 416.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 2926.0 | 2299.0 |
| Total Assets ($mil) | 110550.0 | 95165.0 |
| Total Debt ($mil) | 47853.0 | 39276.0 |
| Equity ($mil) | 27665.0 | 19793.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 30.03 | 27.95 |
| EBITDA Margin | 30.03 | 27.95 |
| Operating Margin | 22.66 | 20.6 |
| Sales Turnover | 0.18 | 0.17 |
| Return on Assets | 1.19 | 2.2 |
| Return on Equity | 4.29 | 10.02 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.63 | 0.66 |
| Interest Expense | 655.0 | 655.0 |
| Interest Coverage | 1.71 | 1.27 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 619.6 | 617.97 |
| Div / share | 0.14 | 0.13 |
| EPS | 0.51 | 0.6 |
| Book value / share | 44.65 | 32.03 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1380765.0 | 911544.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 36.41 for the Real Estate Management & Development industry and a value on par with the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 0.85 indicates a significant discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 2.56. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, BROOKFIELD ASSET MANAGEMENT proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BAM 20.29 | Peers 36.41 | BAM NA | Peers 17.88 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. BAM is trading at a significant discount to its peers. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BAM NA | Peers 62.85 | BAM NA | Peers 1.95 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| BAM 0.85 | Peers 2.56 | BAM -38.97 | Peers 1.73 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BAM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BAM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| BAM 1.20 | Peers 3.16 | BAM 18.61 | Peers 23.89 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BAM is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. BAM trails its peers on the basis of sales growth |
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