Brookfield Asset Management Inc

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BAM : NYSE : Financial
$40.71 up 0.07 | 0.17%
Today's Range: 40.55 - 40.89
Avg. Daily Volume: 735900.0
09/21/17 - 4:02 PM ET

Financial Analysis


BROOKFIELD ASSET MANAGEMENT's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.59% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)9444.06004.0
EBITDA ($mil)2092.01649.0
EBIT ($mil)1479.01133.0
Net Income ($mil)225.0185.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)4429.04020.0
Total Assets ($mil)178183.0156543.0
Total Debt ($mil)75617.068890.0
Equity ($mil)26278.025367.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin22.1527.47
EBITDA Margin22.1527.46
Operating Margin15.6618.87
Sales Turnover0.160.14
Return on Assets0.780.9
Return on Equity4.795.03
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.740.73
Interest Expense865.0815.0
Interest Coverage1.711.39


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)958.72958.99
Div / share0.140.13
EPS0.190.15
Book value / share27.4126.45
Institutional Own % n/a n/a
Avg Daily Volume734713.0980219.0

Valuation


BUY. BROOKFIELD ASSET MANAGEMENT's P/E ratio indicates a premium compared to an average of 21.01 for the Capital Markets industry and a premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 1.43 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 3.76. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BAM 30.63 Peers 21.01   BAM 10.16 Peers 20.56

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BAM is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BAM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAM 15.72 Peers 18.04   BAM NM Peers 2.22

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BAM is trading at a significant premium to its peers.

 

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.

BAM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BAM 1.43 Peers 3.76   BAM -1.54 Peers 55.04

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BAM 1.28 Peers 4.09   BAM 33.48 Peers 19.17

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BAM has a sales growth rate that significantly exceeds its peers.

 

 

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