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Brookfield Corporation (TSE:BN)
TSX:BN
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Brookfield Corporation
(TSX:BN)
68Neutral
Positive Factors
Growth Potential
Record bookings bode well for future growth.
Investment Opportunities
The company's value proposition is highlighted in the report, indicating potential investment opportunities.
Negative Factors
EPS Estimates Risk
Consensus' growth expectations are already set, and there is modest risk to '24-'26 EPS estimates.
Brookfield Corporation (BN) vs. S&P 500 (SPY)
Market Cap
$116.10B
Dividend Yield0.59%
Average Volume (3M)1.94M
Price to Earnings (P/E)180.8
Beta (1Y)2.03
Revenue Growth-13.64%
EPS Growth-48.43%
CountryCA
Employees250,000
SectorFinancial
Sector Strength81
IndustryAsset Management
Share Statistics
EPS (TTM)0.43
Shares Outstanding1,498,531,000
10 Day Avg. Volume2,058,257
30 Day Avg. Volume1,942,539
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.88
Price to Cash Flow (P/CF)5.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$98.57Price Target Upside27.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Brookfield Corporation Business Overview & Revenue Model
Company DescriptionBrookfield Corporation (BN) is a leading global alternative asset manager with over a century of experience in managing a diverse range of assets. The company operates across several sectors, including real estate, infrastructure, renewable energy, private equity, and credit. Brookfield is known for its ability to invest in high-quality assets and businesses that provide essential products and services around the world.
How the Company Makes MoneyBrookfield Corporation makes money primarily through its asset management operations, where it earns management fees and performance-based incentives for managing capital on behalf of its clients. The company invests in a variety of sectors, including real estate, infrastructure, and renewable energy, generating income through leasing, tolls, and energy sales. Additionally, Brookfield realizes gains from the appreciation and sale of its owned assets. Strategic partnerships and acquisitions also play a significant role in expanding its portfolio and enhancing revenue streams.
Brookfield Corporation Financial Statement Overview
Summary
Brookfield Corporation shows strong revenue and asset growth, but faces challenges in profitability with a decline in net income and high leverage. Cash flow is stressed by high capital expenditures, impacting free cash flow negatively. The company needs to address these profitability and leverage issues to ensure long-term financial stability.Income Statement
The income statement shows strong revenue generation with a TTM total revenue of $91.92 billion. However, the net income has decreased significantly from $1.13 billion in 2023 to $0.908 billion in TTM 2024, reflecting a declining net profit margin. The gross profit margin is robust at approximately 24.7%, and EBIT and EBITDA margins are stable at 19.5% and 35% respectively. The revenue growth rate from 2023 to TTM 2024 is negative, indicating challenges in maintaining growth.75
Positive
Balance Sheet
The balance sheet indicates a high level of leverage with a debt-to-equity ratio of 5.32 in TTM 2024. The equity ratio is low at 9.1%, suggesting limited financial flexibility. Return on equity has decreased significantly to 1.95% in TTM 2024, indicating reduced profitability for shareholders. However, the company maintains substantial total assets of $508.14 billion, which supports its operations.70
Positive
Cash Flow
The cash flow statement reveals a challenging scenario with negative free cash flow of -$4.81 billion in TTM 2024, primarily due to high capital expenditures. The operating cash flow to net income ratio is strong at 5.74, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio is negative, reflecting cash flow pressures.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 91.92B | 97.99B | 92.77B | 75.73B | 62.75B | 67.83B | Gross Profit |
| 22.70B | 16.58B | 14.26B | 11.73B | 15.37B | 15.10B | EBIT |
| 17.94B | 16.51B | 17.19B | 16.91B | 10.18B | 13.91B | EBITDA |
| 32.15B | 30.69B | 25.05B | 28.75B | 14.55B | 17.95B | Net Income Common Stockholders |
| 908.00M | 1.13B | 5.20B | 12.39B | 707.00M | 5.35B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.77B | 11.22B | 21.96B | 19.66B | 9.93B | 6.78B | Total Assets |
| 256.28B | 490.10B | 441.28B | 391.00B | 343.70B | 323.97B | Total Debt |
| 118.22B | 233.71B | 214.07B | 175.93B | 148.40B | 143.38B | Net Debt |
| 109.83B | 222.49B | 199.68B | 163.24B | 138.47B | 136.60B | Total Liabilities |
| 159.13B | 321.85B | 299.39B | 256.26B | 221.05B | 207.12B | Stockholders Equity |
| 29.82B | 45.78B | 43.75B | 46.35B | 35.84B | 35.01B |
| Cash Flow | Free Cash Flow | ||||
| -4.81B | -1.60B | 1.51B | 993.00M | 4.33B | 3.27B | Operating Cash Flow |
| 5.21B | 6.47B | 8.75B | 7.87B | 8.34B | 6.33B | Investing Cash Flow |
| -17.93B | -29.76B | -39.65B | -21.05B | -13.87B | -36.67B | Financing Cash Flow |
| 12.83B | 19.93B | 32.46B | 16.26B | 8.70B | 28.75B |
Brookfield Corporation Technical Analysis
Neutral
77.47
Price Trends
81.50
Negative
81.70
Negative
73.54
Positive
Market Momentum
-1.00
Negative
48.17
Neutral
79.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BN, the sentiment is Neutral. The current price of 77.47 is above the 20-day moving average (MA) of 76.19, below the 50-day MA of 81.50, and above the 200-day MA of 73.54, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 79.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BN.
Brookfield Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $31.97B | 19.65 | 7.47% | 3.88% | -0.08% | 4.76% | |
70 Neutral | C$7.43B | 24.59 | 6.93% | 4.97% | -1.42% | -36.31% | |
69 Neutral | $17.63B | 34.40 | 4.50% | 5.04% | 7.16% | -52.28% | |
68 Neutral | $116.10B | 180.83 | 1.40% | 0.59% | -13.64% | -48.43% | |
66 Neutral | C$118.15B | 40.92 | 20.07% | 3.03% | 27.17% | 16.13% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% | |
51 Neutral | $5.68B | ― | 1.65% | 6.76% | -6.72% | -6766.85% |
* Financial Sector Average
Performance Comparison
TSE:BN
Brookfield Corporation
77.47
21.93
39.48%
TSE:FTS
Fortis
64.03
12.74
24.84%
TSE:AQN
Algonquin Power & Utilities
7.40
-0.66
-8.18%
TSE:EMA
Emera
59.23
14.53
32.52%
TSE:CU
Canadian Utilities A
36.27
7.53
26.20%
TSE:BAM
Brookfield Asset Management Ltd. Class A
72.16
17.10
31.06%
Brookfield Corporation Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -7.23% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in 2024 with record financial results, significant asset monetizations, and robust inflows. However, challenges related to public market dynamics and real estate market volatility were noted. Overall, the positive aspects significantly outweigh the concerns.Highlights
Record Financial Results
Distributable earnings before realizations increased 15% to $4.9 billion, and total distributable earnings increased 31% to $6.3 billion in 2024.
Significant Asset Monetizations
Brookfield monetized nearly $40 billion of assets in 2024, including a 29% IRR and 3.4x multiple on US manufactured housing assets.
Strong Operating Performance
Asset management business generated $2.6 billion in distributable earnings, with a 17% growth in fee-related earnings.
Robust Inflows
Over $135 billion of inflows in 2024, driving an 18% increase in fee-bearing capital to $539 billion.
Dividend Increase
The manager announced a 15% increase in their quarterly dividend, close to $300 million of incremental cash annually.
Strong Wealth Solutions Growth
Distributable operating earnings nearly doubled to $1.4 billion, with insurance assets increasing to over $120 billion.
Real Estate Portfolio Performance
Core portfolio delivered 4% growth in same-store net operating income, with high occupancy levels at 96%.
Share Buyback Program
Approximately $1 billion of shares repurchased in 2024, adding $0.80 of value to each remaining share.
Lowlights
Public Market Challenges
Shift from active to passive investing causing some companies to trade poorly relative to value.
Real Estate Market Volatility
Concerns around ten-year treasury yield and potential risks from tariffs affecting monetization confidence.
Company Guidance
During Brookfield Corporation's fourth quarter 2024 conference call, the company highlighted a strong financial performance with record results. Distributable earnings before realizations rose by 15% to $4.9 billion, equating to $3.07 per share, while total distributable earnings surged by 31% to $6.3 billion. The firm reported net income of $1.9 billion for the year. Asset management saw an increase in distributable earnings to $2.6 billion, driven by over $135 billion in inflows, boosting fee-bearing capital by 18% to $539 billion. The wealth solutions business delivered distributable operating earnings of $1.4 billion, nearly doubling from the previous year. Brookfield also repurchased approximately $1 billion of shares in 2024, adding $0.80 of value per remaining share, with an additional $200 million repurchased in early 2025. The company emphasized a robust pipeline for asset sales and significant carried interest, with $11.5 billion in accumulated unrealized carried interest, of which $10 billion is owned by the corporation. Looking ahead, Brookfield is optimistic about 2025, given the constructive market conditions and a strong outlook for growth in earnings and intrinsic value per share.Brookfield Corporation Corporate Events
DividendsFinancial Disclosures
Brookfield Corporation Achieves Record 2024 Results and Increases Dividend
Positive
Feb 13, 2025
Brookfield Corporation announced record financial results for 2024, with distributable earnings before realizations increasing by 15% to $4.9 billion. The company’s asset management business saw over $135 billion in inflows, and its wealth solutions earnings nearly doubled, driven by the acquisition of American Equity Life and organic growth. The Board declared a 13% increase in the quarterly dividend, reflecting confidence in continued positive momentum across its businesses.
Delistings and Listing ChangesBusiness Operations and Strategy
Brookfield Asset Management Enhances Shareholder Ownership and Index Eligibility
Positive
Feb 5, 2025
Brookfield Asset Management has finalized a transaction to enhance its corporate structure and expand shareholder ownership by acquiring approximately 73% of its asset management business shares from Brookfield Corporation in exchange for newly issued Class A Limited Voting Shares. This move is expected to facilitate the stock’s inclusion in major U.S. market indices, potentially broadening the shareholder base and increasing liquidity, thereby reinforcing its market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.