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.
