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.
