Brookfield Asset Management Inc

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BAM : NYSE : Financial
$39.91 up 0.2 | 0.5%
Today's Range: 39.62 - 39.92
Avg. Daily Volume: 926900.0
07/20/17 - 3:15 PM ET

Financial Analysis


BROOKFIELD ASSET MANAGEMENT's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 remained virtually unchanged only increasing by 3.27% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)6266.05253.0
EBITDA ($mil)1854.01582.0
EBIT ($mil)1355.01101.0
Net Income ($mil)-37.0257.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)6427.03563.0
Total Assets ($mil)165996.0152791.0
Total Debt ($mil)73663.068142.0
Equity ($mil)26461.025621.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin29.5930.12
EBITDA Margin29.5830.11
Operating Margin21.6220.96
Sales Turnover0.160.14
Return on Assets0.811.22
Return on Equity4.616.77
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.740.73
Interest Expense843.0767.0
Interest Coverage1.611.44


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)958.56958.64
Div / share0.140.13
EPS-0.080.23
Book value / share27.626.73
Institutional Own % n/a n/a
Avg Daily Volume946137.01058281.0

Valuation


BUY. BROOKFIELD ASSET MANAGEMENT's P/E ratio indicates a premium compared to an average of 22.10 for the Capital Markets industry and a premium compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 1.42 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 4.11. 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 31.53 Peers 22.10   BAM 11.01 Peers 18.88

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 18.89 Peers 18.22   BAM NM Peers 2.29

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 1.42 Peers 4.11   BAM -29.95 Peers 60.25

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 1.45 Peers 4.13   BAM 23.86 Peers 10.38

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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