Brookfield Asset Management Ltd. (NYSE: BAM)

Sector: Financial Services Industry: Asset Management CIK: 0001937926
Market Cap 0.00
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) 21.73
Div Yield % 0.84
Rev 1y % (Qtr) 12.09
Total Debt (Qtr) 2.33 Bn
Debt/Equity (Qtr) 0.28
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About

Brookfield Asset Management Ltd., often referred to as Brookfield, is a prominent global alternative asset manager, listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) under the ticker symbol BAM. The company specializes in managing a diverse range of alternative assets, including private equity, real estate, infrastructure, renewable power, and credit. With a presence in over 30 countries and a team of over 2,500 investment and asset management professionals, Brookfield has established a strong reputation in the industry. Brookfield's...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.17B provides robust 0.50x coverage of total debt 2.33B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 16.52B provides 7.08x coverage of total debt 2.33B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.17B provides strong 10.11x coverage of stock compensation 116M, indicating sustainable incentive practices.
  • Operating cash flow of 1.17B provides exceptional 14.48x coverage of interest expenses 81M, showing strong debt service capability.
  • Strong operating cash flow of 1.17B provides 2.76x coverage of SG&A expenses 425M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 1.17B barely covers its investment activities of (620M), with a coverage ratio of -1.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.17B provides thin coverage of dividend payments of (2.73B) with a -0.43 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.06B provide limited coverage of acquisition spending of (442M), which is -2.40x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Cash position of 1.06B provides weak coverage of payables of 3.39B, which is 0.31x, indicating potential working capital stress and supplier relationship risks.
  • Operating cash flow of 1.17B is outpaced by equity issuance of (185M) (-6.34 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.94
EV to Cash from Ops. EV to Cash from Ops. 0.00 41.10
EV to Debt EV to Debt 0.00 15.28
EV to EBIT EV to EBIT 0.00 23.47
EV to EBITDA EV to EBITDA 0.00 47.80
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 38.62
EV to Market Cap EV to Market Cap 0.00 7.81
EV to Revenue EV to Revenue 0.00 27.38
Price to Book Value [P/B] Price to Book Value [P/B] 0.00 2.34
Price to Earnings [P/E] Price to Earnings [P/E] 0.00 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.11 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -5.56
Dividend per Basic Share Div per Share (Qtr) 1.78 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 244.29 49.83
Interest Coverage Int. cover (Qtr) 33.02 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 162.87 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 22.48 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.26 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.88 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.91 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) 4.55 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 1,800.00 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.45 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.27 0.22
Cash Payout Ratio Cash Payout (Qtr) 1.77 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.28 0.70
Interest Cover Ratio Int Coverage (Qtr) 33.02 25.16
Times Interest Earned Times Interest Earned (Qtr) 33.02 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 60.40 -114.76
EBIT Margin % EBIT Margin % (Qtr) 59.63 -127.24
EBT Margin % EBT Margin % (Qtr) 57.82 -150.97
Gross Margin % Gross Margin % (Qtr) 67.20 67.88
Net Profit Margin % Net Margin % (Qtr) 58.20 -148.68