Brookfield Asset Management Ltd. Class A (BAM) AI Stock Analysis

• Market Cap: C$108.49B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 37.5
• Beta (1Y): 1.59
• Revenue Growth: 27.17%
• EPS Growth: 16.13%
• Country: CA
• Employees: 270
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 1.78
• Shares Outstanding: 1,637,295,800
• 10 Day Avg. Volume: 1,177,244
• 30 Day Avg. Volume: 1,579,493
• PEG Ratio: 2.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 36.84
• Price to Cash Flow (P/CF): 28.10
• P/FCF Ratio: 28.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$87.34
• Price Target Upside: 38.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Brookfield Asset Management's overall score reflects its robust financial performance, highlighted by significant revenue and profit growth, and strong cash flow generation. While there are concerns about the sustainability of extraordinary profit levels, the company's low leverage and liquidity position are strengths. The positive sentiment from recent earnings calls and strategic corporate events further supports the stock's potential. However, high valuation metrics compared to peers and technical indicators suggest caution. Overall, the company is well-positioned for growth, but investors should be aware of the potential for profit volatility and market challenges.

Positive Factors

Earnings Performance

Q4/24 results above expectations with $0.40 distributable earnings per share, marking the best quarterly margin in two years for BAM.

Favorable Market Conditions

BAM is seeing conditions that are favorable for both capital deployment and monetization, underpinned by the firm's asset class diversification, scale, and global reach.

Fundraising Progress

Brookfield is progressing well towards final closes for its latest flagship real estate and transition funds, with significant contributions from credit fundraising.

Negative Factors

Management Fee Shortfall

Management fee and fee-bearing capital shortfalls led to moderate decreases in management fee forecasts for BAM.

Reputational Risk

The negative headlines represent a reputational risk that could lead to questions from LPs, potentially slowing fundraising and drawing scrutiny from insurance regulators, which could slow FPAUM growth at BAM.

Valuation Challenges

Unique complexity is a limiting factor on valuation multiple for BAM, affecting its stock performance.

Brookfield Asset Management Ltd. Class A Business Overview & Revenue Model

Company Description

Brookfield Asset Management Ltd. provides alternative asset management services. Its renewable power and transition business includes the ownership, operation, and development of hydroelectric, wind, solar, and energy transition power generating assets. The company's infrastructure business engages in the ownership, operation, and development of utilities, transport, midstream, data and sustainable resource assets. In addition, its private equity business offers business, infrastructure, and industrials services; and real estate business, which includes core investments, and transitional and development investments. Further, the company engages in the residential development business including homebuilding, and condominium and land development. The company was incorporated in 2022 and is headquartered in Toronto, Canada.

How the Company Makes Money

Brookfield Asset Management makes money primarily through management fees, carried interest, and investment income. The company charges management fees to institutional and retail clients for managing their assets, typically based on a percentage of the assets under management (AUM). Additionally, Brookfield earns carried interest, which is a share of the profits generated by the investments it manages, contingent upon achieving certain performance benchmarks. Investment income is generated from Brookfield's own capital invested alongside its clients in various asset classes. The company also benefits from strategic partnerships and co-investment opportunities, which enhance its ability to access and manage lucrative investment opportunities.

Brookfield Asset Management Ltd. Class A Financial Statement Overview

Summary

Brookfield Asset Management Ltd. faces financial challenges. While the balance sheet shows strong equity and low leverage, the income statement reflects a severe revenue decline, affecting overall performance. Improved cash flow trends are noted, but sustainability is a concern.

Income Statement

The company's revenue has significantly decreased from the previous year, dropping from $3.63 billion to $383 million, indicating a severe contraction. This is reflected in the net income, which fell despite an increase in absolute terms, resulting in a net profit margin of 117.23%. However, it is important to note that these figures are skewed due to the drastic change in revenue. The gross profit margin stands at 14.88%, and the EBITDA margin is 136.29%, both of which suggest operational efficiency improvements, but the overall financial health is concerning due to revenue shrinkage.

Balance Sheet

The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0.12, indicating low leverage, which is a positive sign of stability. The equity ratio is 64.78%, showing a healthy proportion of the company's assets financed by equity. However, the drastic reduction in total assets from the previous year is a point of concern. The return on equity (ROE) is a remarkable 21.63%, indicating efficient use of equity capital to generate profits.

Cash Flow

The free cash flow has improved significantly to $491 million from a negative position last year, indicating improved cash generation. The operating cash flow to net income ratio is 1.13, suggesting healthy conversion of net income into cash. However, the prior year's negative operating cash flow is a notable concern, and the overall cash flow situation requires careful monitoring despite recent improvements.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.10B	383.00M	3.63B	2.79B	2.25B
	Gross Profit
246.00M	57.00M	2.61B	2.08B	1.73B
	EBIT
638.00M	900.00M	2.73B	3.73B	1.18B
	EBITDA
779.00M	522.00M	35.00M	2.08B	1.37B
	Net Income Common Stockholders
813.00M	449.00M	19.00M	1.87B	398.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10B	9.00M	3.54B	2.49B	2.10B
	Total Assets
0.00	3.21B	12.89B	25.64B	22.47B
	Total Debt
0.00	256.00M	3.00M	461.00M	4.78B
	Net Debt
2.10B	247.00M	-3.54B	-2.03B	2.68B
	Total Liabilities
0.00	1.12B	3.38B	11.24B	10.52B
	Stockholders Equity
11.95B	2.08B	9.51B	9.87B	9.10B
Cash Flow		Free Cash Flow
113.16M	491.00M	-387.00M	1.41B	1.77B
	Operating Cash Flow
158.16M	508.00M	-374.00M	1.44B	1.79B
	Investing Cash Flow
165.00M	-41.00M	1.71B	-861.00M	-759.00M
	Financing Cash Flow
310.84M	-459.00M	-280.00M	-187.00M	-576.00M

Brookfield Asset Management Ltd. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BAM, the sentiment is Negative. The current price of 62.96 is below the 20-day moving average (MA) of 69.56, below the 50-day MA of 76.93, and below the 200-day MA of 68.78, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 38.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BAM.

Brookfield Asset Management Ltd. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POW	75 Outperform	C$33.14B	15.47	10.36%	4.45%	30.81%	-2.47%
GWO	73 Outperform	C$52.84B	13.58	15.52%	4.04%	-2.40%	42.24%
BAM	68 Neutral	C$108.49B	37.51	20.07%	3.31%	27.17%	16.13%
Sector *	63 Neutral	$12.86B	9.17	9.16%	4.78%	16.41%	-10.10%
ONEX	57 Neutral	C$6.58B	16.87	3.54%	0.43%	-17.78%	-41.13%

Brookfield Asset Management Ltd. Class A Corporate Events

Brookfield Asset Management Forms Strategic Partnership with Angel Oak

Brookfield Asset Management has announced a strategic partnership with Angel Oak Companies, acquiring a majority stake in the firm to expand its residential mortgage credit strategies. This partnership aligns with Brookfield’s strategy to collaborate with top-tier credit managers and is expected to enhance Angel Oak’s growth and innovation in providing access to residential mortgage credit, while Angel Oak will continue to operate independently under its current leadership.

Brookfield Asset Management Files First U.S. Annual Report

Brookfield Asset Management Ltd. has completed the filing of its 2024 annual report on Form 10-K with the SEC, marking its first submission of this kind. This move aligns with the financial reporting practices of U.S.-domiciled public companies and signifies Brookfield’s commitment to transparency and regulatory compliance, potentially enhancing its credibility and attractiveness to investors.

Brookfield Asset Management Launches $1 Billion Infrastructure Fund

Brookfield Asset Management announced the successful closing of its first Brookfield Infrastructure Structured Solutions Fund, raising approximately $1 billion. This fund aims to leverage Brookfield’s expertise in global infrastructure to partner with mid-market sponsors, developers, and corporates, focusing on sectors where Brookfield has significant operations. The fund has already made initial investments in Strategic Venue Partners and Origis Energy, with Brookfield contributing $150 million of the committed capital. The launch of this fund represents an expansion into the middle market, addressing growing demand for infrastructure investments driven by trends like decarbonization and digitalization.

Brookfield Asset Management Reports Record 2024 Results and 15% Dividend Increase

Brookfield Asset Management Ltd. announced record financial results for 2024, with over $135 billion in capital inflows and $48 billion in capital deployed. The company’s fee-related earnings increased by 17% year-over-year to a record $677 million for the fourth quarter. Brookfield raised its quarterly dividend by 15%, reflecting its positive financial outlook and the completion of a significant transaction with Brookfield Corporation, which solidifies its control over its asset management business. The company’s strategic position in the alternatives space and its diversified fund offerings are expected to drive future growth.

Brookfield Asset Management Enhances Corporate Structure Through Strategic Acquisition

Brookfield Asset Management has completed a strategic transaction aimed at enhancing its corporate structure by acquiring a significant portion of its asset management business from Brookfield Corporation. This move is expected to broaden shareholder ownership and improve the stock’s eligibility for inclusion in major U.S. market indices, potentially increasing its liquidity and expanding its shareholder base.

Brookfield Asset Management Announces Q4 2024 Results Release and Conference Call

Brookfield Asset Management Ltd. is set to release its fourth-quarter 2024 financial results on February 12, 2025, followed by a conference call and webcast. The announcement highlights the company’s commitment to transparency and engagement with stakeholders, which is crucial for maintaining investor confidence and its strong position in the global asset management industry.