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Brookfield logged a -0.6% change during today's afternoon session, and is now trading at a price of $33.44 per share.

Brookfield returned losses of -723.2% last year, with its stock price reaching a high of $43.72 and a low of $28.25. Over the same period, the stock underperformed the S&P 500 index by -2339.0%. As of April 2023, the company's 50-day average price was $31.68. Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. Based in Toronto, Canada, the Large-Cap Real Estate company has 202,500 full time employees. Brookfield has offered a 1.5% dividend yield over the last 12 months.

Exceptional Profitability Overshadowed by Excessive Leverage:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $67,826 $62,752 $75,731 $92,769
Operating Margins 14.9% 15.1% 15.3% 15.2%
Net Margins 4.14% -0.21% 5.24% 2.22%
Net Income (MM) $2,807 -$134 $3,966 $2,056
Net Interest Expense (MM) -7,227 -7,213 -7,604 -10,702
Net Interest Expense (MM) -$7,227 -$7,213 -$7,604 -$10,702
Depreciation & Amort. (MM) -$4,876 -$5,791 -$6,437 -$7,683
Earnings Per Share $1.73 -$0.12 $2.39 $0.43
EPS Growth n/a -106.94% 2091.67% -82.01%
Diluted Shares (MM) 1,488 1,511 1,587 1,567
Free Cash Flow (MM) $3,275 $4,329 $993 $1,515
Capital Expenditures (MM) -$3,053 -$4,012 -$6,881 -$7,236
Net Current Assets (MM) -$168,102 -$175,916 -$199,992 -$246,005
Current Ratio 0.87 0.85 0.86 0.69
Long Term Debt (MM) $143,375 $148,401 $143,141 $170,777
Net Debt / EBITDA 9.89 11.65 8.03 9.11

Brookfield has growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and generally positive cash flows. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet.

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

Brookfield has a trailing twelve month P/E ratio of 73.7, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $4.57, the company has a forward P/E ratio of 6.9. Brookfield's PEG ratio is 7.14 on the basis of the 10.3% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Brookfield in terms of its equity because its P/B ratio is 1.31 while the sector average is 2.24. The company's shares are currently trading 32.4% above their Graham number.

Brookfield Has No Average Rating Visible In Our Data:

The 5 analysts following Brookfield have set target prices ranging from $44.7 to $80.84 per share, for an average of $62.55 with a buy rating. As of April 2023, the company is trading -49.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

The largest shareholder is Brookfield Corp /ON/, whose 8% stake in the company is worth $4,471,046,208.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.