Brookfield Asset Management Inc

Find Ratings Reports
BAM : NYSE : Financial
$34.93 | %
Today's Range: 34.69 - 35.06
Avg. Daily Volume: 755,000
09/23/16 - 4:02 PM ET

Financial Analysis


BROOKFIELD ASSET MANAGEMENT's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.40% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)6004.04935.0
EBITDA ($mil)1649.01311.0
EBIT ($mil)1133.0883.0
Net Income ($mil)185.0645.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4020.02923.0
Total Assets ($mil)156543.0130998.0
Total Debt ($mil)68890.056291.0
Equity ($mil)25367.025016.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.4726.57
EBITDA Margin27.4626.56
Operating Margin18.8717.89
Sales Turnover0.140.14
Return on Assets0.92.41
Return on Equity5.0312.04
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.730.69
Interest Expense815.0725.0
Interest Coverage1.391.22


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)958.99960.34
Div / share0.130.12
EPS0.150.62
Book value / share26.4526.05
Institutional Own % n/a n/a
Avg Daily Volume752515.01105064.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 21.68 for the Capital Markets industry and a value on par with the S&P 500 average of 24.75. For additional comparison, its price-to-book ratio of 1.25 indicates a significant discount versus the S&P 500 average of 2.77 and a significant discount versus the industry average of 5.43. The price-to-sales ratio is below the S&P 500 average and is well below 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 25.45 Peers 21.68   BAM 11.53 Peers 15.09

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

BAM is trading at a 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 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 30.27 Peers 18.90   BAM NM Peers 1.44

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 1.25 Peers 5.43   BAM -58.52 Peers 7.26

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 1.44 Peers 4.53   BAM 17.70 Peers -0.83

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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