TSX:BAM.A

Stock Analysis Report

Brookfield Asset Management

Executive Summary

Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.

Snowflake


Similar Companies

Share Price & News

How has Brookfield Asset Management's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

BAM.A

1.0%

CA Capital Markets

0.3%

CA Market


1 Year Return

27.8%

BAM.A

12.8%

CA Capital Markets

0.1%

CA Market

Return vs Industry: BAM.A exceeded the Canadian Capital Markets industry which returned 12.8% over the past year.

Return vs Market: BAM.A exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

BAM.AIndustryMarket
7 Day2.8%1.0%0.3%
30 Day-1.9%-2.8%-2.5%
90 Day10.7%5.2%-1.4%
1 Year29.6%27.8%17.9%12.8%3.6%0.1%
3 Year54.9%48.0%38.7%21.8%14.3%4.1%
5 Year119.3%100.6%35.3%7.2%25.0%6.9%

Price Volatility Vs. Market

How volatile is Brookfield Asset Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brookfield Asset Management undervalued compared to its fair value and its price relative to the market?

17.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BAM.A (CA$69.9) is trading above our estimate of fair value (CA$16.35)

Significantly Undervalued: BAM.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAM.A is poor value based on its PE Ratio (17.7x) compared to the Capital Markets industry average (10.4x).

PE vs Market: BAM.A is poor value based on its PE Ratio (17.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate BAM.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BAM.A is overvalued based on its PB Ratio (1.9x) compared to the CA Capital Markets industry average (1x).

Future Growth

How is Brookfield Asset Management forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BAM.A's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if BAM.A's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BAM.A's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: BAM.A's revenue is forecast to decline over the next 3 years (-0.3%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BAM.A's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Brookfield Asset Management performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BAM.A's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: BAM.A's earnings growth over the past year (10.1%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: BAM.A earnings growth over the past year (10.1%) exceeded the Capital Markets industry 9.2%.


Return on Equity

High ROE: BAM.A's Return on Equity (5.7%) is considered low.


Return on Assets

ROA vs Industry: BAM.A's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: BAM.A has improved its Return on Capital Employed over the past 3 years.

Financial Health

How is Brookfield Asset Management's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BAM.A has a high level of physical assets or inventory.

Debt Coverage by Assets: BAM.A's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: BAM.A's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BAM.A has a sufficient allowance for bad loans.

Low Risk Liabilities: BAM.A reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BAM.A has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BAM.A has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BAM.A has an appropriate level of bad loans.

Dividend

What is Brookfield Asset Management's current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.0%markettop25%6.0%industryaverage4.4%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAM.A's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: BAM.A's dividend (1.21%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).

Stable Dividend: BAM.A's dividends per share have been stable in the past 10 years.

Growing Dividend: BAM.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), BAM.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAM.A's dividends in 3 years are forecast to be well covered by earnings (26.3% payout ratio).

Management

What is the CEO of Brookfield Asset Management's salary, the management and board of directors tenure and is there insider trading?

16.3yrs

Average management tenure


CEO

James Flatt (54yo)

17.7yrs

Tenure

US$4,920,300

Compensation

Mr. James Bruce Flatt serves as Chief Executive Officer and prior to that he had been the Managing Director of Real Estate & CEO and prior to that was Chief Executive Officer and a Director at Brookfield A ...


CEO Compensation Analysis

Compensation vs. Market: James's total compensation ($USD4.92M) is about average for companies of similar size in the Canadian market ($USD6.88M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Management Age and Tenure

16.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BAM.A's management team is seasoned and experienced (16.3 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BAM.A's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: BAM.A insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$4,532,55028 Aug 19
Robert Harding
EntityIndividual
Shares67,000
Max PriceUS$67.65
BuyUS$4,532,55028 Aug 19
Robert Harding
EntityIndividual
Shares67,000
Max PriceUS$67.65
BuyUS$6,862,00022 Aug 19
Timothy Price
EntityIndividual
Shares100,000
Max PriceUS$68.62
SellUS$6,745,56621 Aug 19
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares100,000
Max PriceUS$67.85
SellUS$2,013,58816 Aug 19
Craig Noble
EntityIndividual
Shares29,862
Max PriceUS$67.43
SellUS$53,752,00014 Aug 19
Jack Cockwell
EntityIndividual
Shares800,000
Max PriceUS$67.19
BuyUS$60,720,00014 Aug 19
Partners Limited
EntityCompany
Shares920,000
Max PriceUS$66.00
SellUS$26,708,00014 Aug 19
Jack Cockwell
EntityIndividual
Shares400,000
Max PriceUS$66.77
BuyUS$3,920,64927 Jun 19
Justin Beber
EntityIndividual
Shares61,326
Max PriceUS$63.93
SellUS$928,93726 Jun 19
Jack Cockwell
EntityIndividual
Shares14,400
Max PriceUS$64.51
SellUS$6,336,29014 Jun 19
Jack Cockwell
EntityIndividual
Shares100,000
Max PriceUS$63.36
SellUS$6,358,00012 Jun 19
Jack Cockwell
EntityIndividual
Shares100,000
Max PriceUS$63.58
SellUS$13,269,57905 Jun 19
Jack Cockwell
EntityIndividual
Shares213,000
Max PriceUS$62.70
SellUS$1,960,90630 May 19
Jack Cockwell
EntityIndividual
Shares31,250
Max PriceUS$62.75
SellUS$7,561,86125 May 19
Sachin Shah
EntityIndividual
Shares120,000
Max PriceUS$63.37
SellUS$12,039,06024 May 19
Jack Cockwell
EntityIndividual
Shares187,000
Max PriceUS$64.38
SellUS$19,049,47416 May 19
Jack Cockwell
EntityIndividual
Shares300,000
Max PriceUS$64.00
SellUS$6,176,30028 Mar 19
Timothy Price
EntityIndividual
Shares100,000
Max PriceUS$61.76
SellUS$6,200,00025 Mar 19
Timothy Price
EntityIndividual
Shares100,000
Max PriceUS$62.00
SellUS$12,400,00020 Mar 19
Timothy Price
EntityIndividual
Shares200,000
Max PriceUS$62.00
SellUS$1,521,98825 Feb 19
The Robert Harding Foundation, Endowment Arm
EntityCompany
Shares26,000
Max PriceUS$58.54
SellUS$757,68020 Dec 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares14,000
Max PriceUS$54.12
BuyUS$757,68020 Dec 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares14,000
Max PriceUS$54.12
SellUS$1,794,60907 Dec 18
The Robert Harding Foundation, Endowment Arm
EntityCompany
Shares30,900
Max PriceUS$58.81
SellUS$1,411,48403 Dec 18
The Robert Harding Foundation, Endowment Arm
EntityCompany
Shares24,298
Max PriceUS$58.28
SellUS$4,781,75003 Dec 18
Robert Harding
EntityIndividual
Shares81,198
Max PriceUS$58.89
BuyUS$4,781,75003 Dec 18
The Robert Harding Foundation, Endowment Arm
EntityCompany
Shares81,198
Max PriceUS$58.89
SellUS$1,003,00028 Nov 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares17,000
Max PriceUS$59.00
BuyUS$1,003,00028 Nov 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares17,000
Max PriceUS$59.00
SellUS$996,03028 Nov 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares17,000
Max PriceUS$58.59
SellUS$921,44023 Nov 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares16,000
Max PriceUS$57.59
BuyUS$921,44023 Nov 18
Brian Lawson
EntityIndividual
Role
Member of the Board of Directors
Managing Partner
Shares16,000
Max PriceUS$57.59

Ownership Breakdown


Management Team

  • James Flatt (54yo)

    CEO, Managing Partner & Director

    • Tenure: 17.7yrs
    • Compensation: US$4.92m
  • Cyrus Madon (53yo)

    Managing Partner &CEO of Private Equity Group

    • Tenure: 15.8yrs
    • Compensation: US$3.82m
  • Jeff Blidner (71yo)

    Vice Chairman of the Board

    • Tenure: 0.7yrs
  • Sam Pollock (53yo)

    Managing Partner & CEO of Infrastructure

    • Tenure: 0yrs
    • Compensation: US$3.82m
  • Brian Lawson (60yo)

    Managing Partner

    • Tenure: 1.3yrs
    • Compensation: US$2.39m
  • Lori Pearson (57yo)

    Managing Partner & COO

    • Tenure: 3.8yrs
  • Pierre McNeil (56yo)

    Managing Director of Private Equity

    • Tenure: 0yrs
  • Jim Reid (53yo)

    Managing Partner & Chief Investment Officer of Private Equity and Energy

    • Tenure: 16.3yrs
  • Brian Kingston (45yo)

    Managing Partner & CEO of Real Estate

    • Tenure: 0yrs
    • Compensation: US$4.37m
  • David Nowak (49yo)

    Managing Partner of Private Equity

    • Tenure: 0yrs

Board Members

  • Marcel Coutu (65yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$250.00k
  • Harry Goldgut (63yo)

    Vice Chairman of Infrastructure & Power

    • Tenure: 0yrs
    • Compensation: US$83.30k
  • James Flatt (54yo)

    CEO, Managing Partner & Director

    • Tenure: 17.7yrs
    • Compensation: US$4.92m
  • Frank McKenna (71yo)

    Independent Chairman of the Board

    • Tenure: 9.2yrs
    • Compensation: US$500.00k
  • V. Kempston Darkes (70yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$215.00k
  • Sandeep Mathrani (57yo)

    Vice-Chair of Brookfield Property Group

    • Tenure: 0.3yrs
  • Jeff Blidner (71yo)

    Vice Chairman of the Board

    • Tenure: 0.7yrs
  • Brian Lawson (60yo)

    Managing Partner

    • Tenure: 1.3yrs
    • Compensation: US$2.39m
  • Diana Taylor (64yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$215.00k
  • Ron Bloom (63yo)

    Managing Partner of Private Equity

    • Tenure: 0yrs

Company Information

Brookfield Asset Management Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brookfield Asset Management Inc.
  • Ticker: BAM.A
  • Exchange: TSX
  • Founded: 1997
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$70.489b
  • Shares outstanding: 1.01b
  • Website: https://www.brookfield.com

Number of Employees


Location

  • Brookfield Asset Management Inc.
  • Brookfield Place
  • Suite 300
  • Toronto
  • Ontario
  • M5J 2T3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAM.ATSX (The Toronto Stock Exchange)YesClass A Common SharesCACADAug 1997
BKAADB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 1997
BAMNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 1997
BAM.PRGTSX (The Toronto Stock Exchange)PFD A SER 9CACADOct 2001
BAM.PRMTSX (The Toronto Stock Exchange)PFD SER17 CL ACACADNov 2006
BAM.PRRTSX (The Toronto Stock Exchange)CV CL A PFD 24CACADJan 2010
BAMG.FOTCPK (Pink Sheets LLC)CV CL A PFD 24USUSDJan 2010
BAM.PRTTSX (The Toronto Stock Exchange)PFD SHS SER 26CACADOct 2010
BAM.PFATSX (The Toronto Stock Exchange)CUM CLA PF S32CACADMar 2012
BAM.PFCTSX (The Toronto Stock Exchange)PREF CL A S 36CACADNov 2012
BAM.PFETSX (The Toronto Stock Exchange)PREF CL A SER 38CACADMar 2014
BAM.PFGTSX (The Toronto Stock Exchange)PFD-42 CL ACACADOct 2014
BAM.PFITSX (The Toronto Stock Exchange)PREF A SER 46%CACADNov 2016

Biography

Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets. Our investment focus is on real estate, renewable power, infrastructure and privat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:59
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.