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.

Rewards


Snowflake Analysis


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

Stable Share Price: BAM.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

BAM.A

-1.4%

CA Capital Markets

-1.5%

CA Market


1 Year Return

43.4%

BAM.A

15.7%

CA Capital Markets

2.5%

CA Market

Return vs Industry: BAM.A exceeded the Canadian Capital Markets industry which returned 15.7% over the past year.

Return vs Market: BAM.A exceeded the Canadian Market which returned 2.5% over the past year.


Shareholder returns

BAM.AIndustryMarket
7 Day-5.7%-1.4%-1.5%
30 Day4.1%-1.4%-0.7%
90 Day8.7%3.7%1.8%
1 Year44.7%43.4%21.0%15.7%5.7%2.5%
3 Year82.1%74.9%28.1%11.8%16.8%6.2%
5 Year103.4%86.7%43.0%12.6%32.0%12.8%

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?

23.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAM.A (CA$87.28) is trading above our estimate of fair value (CA$31.15)

Significantly Below Fair Value: 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 (24.7x) compared to the Capital Markets industry average (13x).

PE vs Market: BAM.A is poor value based on its PE Ratio (24.7x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

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 (2.1x) compared to the CA Capital Markets industry average (0.9x).

Future Growth

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

11.5%

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 (1.4%).

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 (11.5% per year) is forecast to grow faster than the Canadian market (4.6% per year).

High Growth Revenue: BAM.A's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAM.A has high quality earnings.

Growing Profit Margin: BAM.A's current net profit margins (3.6%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: BAM.A's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: BAM.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAM.A had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the Capital Markets industry average (-13.4%).


Return on Equity

High ROE: BAM.A's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed

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?

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%5.6%industryaverage4.4%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: BAM.A's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: BAM.A's dividend (1.09%) is low compared to the top 25% of dividend payers in the Canadian market (5.6%).


Stability and Growth of Payments

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 (24%), 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 (18.9% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

16.4yrs

Average management tenure


CEO

James Flatt (54yo)

18yrs

Tenure

US$4,920,300

Compensation

Mr. James Bruce Flatt has served as Chief Executive Officer since February 2002 and served as Managing Director of Real Estate and serves Director at Brookfield Asset Management Inc. since April 2001 respe ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD4.92M) is about average for companies of similar size in the Canadian market ($USD6.97M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Flatt
CEO, Managing Partner & Director18yrsUS$4.92m3.95% $3.5b
Jeffrey Blidner
Vice Chairman of the Board1yrsno data0.34% $298.8m
Cyrus Madon
Managing Partner &CEO of Private Equity Group16.1yrsUS$3.82m0.71% $620.3m
Samuel Pollock
Managing Partner & CEO of Infrastructure0yrsUS$3.82m1.29% $1.1b
Brian Kingston
Managing Partner & CEO of Real Estate0yrsUS$4.37m0.16% $144.1m
James Reid
Managing Partner & Chief Investment Officer of Private Equity and Energy16.7yrsno datano data
David Nowak
Managing Partner of Private Equity0yrsno datano data
Pierre McNeil
Managing Director of Private Equity0yrsno datano data
Nicholas Goodman
Managing Partner & CFO0yrsno data0.057% $50.4m
Lori Pearson
Managing Partner & COO4.1yrsno data0.11% $97.9m

16.4yrs

Average Tenure

53yo

Average Age

Experienced Management: BAM.A's management team is seasoned and experienced (16.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Flatt
CEO, Managing Partner & Director18yrsUS$4.92m3.95% $3.5b
Jeffrey Blidner
Vice Chairman of the Board1yrsno data0.34% $298.8m
Ron Bloom
Managing Partner of Private Equity0yrsno datano data
Marcel Coutu
Independent Director13.8yrsUS$250.00k0.0069% $6.1m
Harry Goldgut
Vice Chairman of Infrastructure & Power0yrsUS$83.30kno data
Jack Cockwell
Director40.4yrsUS$119.42k1.26% $1.1b
Francis McKenna
Independent Chairman of the Board9.5yrsUS$500.00kno data
V. Kempston Darkes
Independent Director11.8yrsUS$215.00kno data
Brian Lawson
Vice Chair0.08yrsUS$2.39m1.09% $954.2m
Diana Taylor
Independent Director7.8yrsUS$215.00kno data

10.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BAM.A's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BAM.A insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$87.912b
  • 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
BAMNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 1997
BKAADB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 1997
0KEHLSE (London Stock Exchange)YesClass A Common SharesGBEURAug 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)4.8 PREF 46% ACACADNov 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 private equity assets. Our objective is to generate attractive long-term risk-adjusted returns for the benefit of our clients and shareholders. We manage a range of public and private investment products and services for institutional and retail clients. We earn asset management income for doing so and align our interests with our clients by investing alongside them. We have an exceptionally strong balance sheet, with over $30 billion of capital invested, primarily in our four listed partnerships: Brookfield Property Partners, Brookfield Infrastructure Partners, Brookfield Renewable Partners and Brookfield Business Partners. This access to large-scale capital enables us to make investments in sizeable, premier assets across geographies and asset classes that few managers are able to do. We create value for BAM shareholders in the following ways: As an asset manager – by investing both our own capital and that of our investors – this enables us to increase the scale of our operations, and enhances our financial returns through base management fees and performance-based income; as an investor and capital allocator – we strive to invest at attractive valuations, particularly in value-oriented situations that create opportunities for superior valuation gains and cash flow returns, or by monetizing assets at appropriate times to realize value; and as an owner-operator – we constantly work to increase the value of the assets within our operating businesses and the cash flows they produce through our operating expertise, development capabilities and effective financing. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:35
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.