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Brookfield Investors Buzz – Today's Hot Stock Discussions

Now trading at a price of $46.01, Brookfield has moved 2.3% so far today.

Brookfield returned gains of 34.5% last year, with its stock price reaching a high of $46.14 and a low of $28.84. Over the same period, the stock outperformed the S&P 500 index by 10.3%. More recently, the company's 50-day average price was $42.84. 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 240,000 full time employees. Brookfield has offered a 0.6% dividend yield over the last 12 months.

A Declining EPS Growth Trend and Negative Cash Flows:

2018 2019 2020 2021 2022 2023
Revenue (M) $56,771 $67,826 $62,752 $75,731 $92,769 $95,924
Net Margins 13% 8% 1% 16% 6% 5%
Net Income (M) $7,488 $5,354 $707 $12,388 $5,195 $5,105
Net Interest Expense (M) $4,854 $7,227 $7,213 $7,604 $10,702 n/a
Depreciation & Amort. (M) $3,102 $4,876 $5,791 $6,437 $7,683 $9,075
Earnings Per Share $3.4 $1.73 -$0.12 $2.39 $1.19 $0.61
EPS Growth n/a -49.12% -106.94% 2091.67% -50.21% -48.74%
Free Cash Flow (M) -$70,658 -$56,330 -$18,531 -$52,957 -$57,291 $6,467
CAPEX (M) $75,817 $62,658 $26,872 $60,831 $66,042 n/a
Total Debt (M) $5,969 $7,083 $9,077 $9,963 $11,390 $11,984

Brookfield's Valuation Is in Line With Its Sector Averages:

Brookfield has a trailing twelve month P/E ratio of 71.4, compared to an average of 27.5 for the Real Estate sector. Based on its EPS guidance of $5.64, the company has a forward P/E ratio of 7.6. The 7.5% compound average growth rate of Brookfield's historical and projected earnings per share yields a PEG ratio of 9.52. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Brookfield in terms of its equity because its P/B ratio is 1.72 while the sector average is 2.1.

Analysts Give Brookfield an Average Rating of Buy:

The 4 analysts following Brookfield have set target prices ranging from $33.01 to $72.21 per share, for an average of $58.48 with a buy rating. The company is trading -21.3% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

The largest shareholder is Partners Value Investments LP, whose 7% stake in the company is worth $5,565,778,103.

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.

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