Brookfield Asset Management Ltd. Class A (BAM) AI Stock Analysis

• Market Cap: C$119.65B
• Dividend Yield: 3.25%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 38.1
• Beta (1Y): 1.66
• Revenue Growth: 27.17%
• EPS Growth: 16.13%
• Country: CA
• Employees: 2,500
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.55
• Shares Outstanding: 1,612,543,200
• 10 Day Avg. Volume: 2,219,798
• 30 Day Avg. Volume: 2,234,466
• PEG Ratio: -5.78
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.08
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: C$79.35
• Price Target Upside: 6.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: ―

Brookfield Asset Management Ltd. scores a 69, reflecting its robust financial performance, strong earnings call sentiment, and strategic corporate events. The company's strong revenue and profit growth, along with strategic expansions, highlight its growth potential. However, high valuation metrics and mixed technical indicators suggest caution. Investors should consider the potential for profit volatility and market challenges.

Positive Factors

Business Growth

Strong deployments of $16B beat expectations, primarily driven by credit and renewables.

Earnings

BAM shares outperformed on 1Q earnings day, reflecting decent 1Q results and optimism as BAM moves closer to potential U.S. index additions.

Financial Performance

Improvement in alt group sentiment and the market multiple has boosted the price target from $48 to $54.

Negative Factors

Market Performance

BAM underperformed following a negative FT article, highlighting concerns about its unique complexities and lower-quality earnings streams.

Reputation Risk

Negative headlines represent a reputational risk that could lead to questions from LPs, potentially slowing fundraising and inviting scrutiny from insurance regulators.

Valuation Concerns

Unique complexity is a limiting factor on valuation multiple, reflecting BAM's interconnections and lack of independence.

Brookfield Asset Management Ltd. Class A Business Overview & Revenue Model

Company Description

Brookfield Asset Management Ltd. provides alternative asset management services. Its renewable power and transition business includes the ownership, operation, and development of hydroelectric, wind, solar, and energy transition power generating assets. The company's infrastructure business engages in the ownership, operation, and development of utilities, transport, midstream, data and sustainable resource assets. In addition, its private equity business offers business, infrastructure, and industrials services; and real estate business, which includes core investments, and transitional and development investments. Further, the company engages in the residential development business including homebuilding, and condominium and land development. The company was incorporated in 2022 and is headquartered in Toronto, Canada.

How the Company Makes Money

Brookfield Asset Management makes money primarily through asset management fees, performance fees, and direct investments. The company earns asset management fees by managing capital on behalf of institutional investors, sovereign wealth funds, and high-net-worth individuals. These fees are typically calculated as a percentage of the assets under management (AUM). Performance fees are earned when the returns on the managed funds exceed certain predefined benchmarks or thresholds, incentivizing the firm to achieve superior outcomes for its clients. Additionally, Brookfield generates revenue from direct investments in its managed assets, benefiting from dividends, interest, and capital appreciation. The company's diverse portfolio across real estate, infrastructure, renewable power, and private equity provides multiple revenue streams and risk diversification. Strategic partnerships and joint ventures with other financial institutions and investors further enhance Brookfield's ability to access large-scale projects and investment opportunities, contributing to its earnings.

Brookfield Asset Management Ltd. Class A Financial Statement Overview

Summary

Brookfield Asset Management Ltd. Class A demonstrates strong financial performance with significant revenue and profit growth in 2024. The balance sheet is solid with low leverage, and cash flow generation is robust. However, the sustainability of unusually high net income and asset declines needs careful monitoring. The company is well-positioned in terms of liquidity and financial stability, but investors should be wary of potential profit volatility.

Income Statement

The company has shown substantial revenue growth from 2023 to 2024, with a growth rate of 25.85%. Gross profit margin improved to 23.65% in 2024 from 14.88% in 2023, indicating better cost management. The net profit margin increased significantly to 112.24% in 2024, which is unusually high, possibly due to extraordinary income or financial maneuvers, raising concerns about sustainability. EBIT margin is unavailable for 2024 due to zero EBIT, while EBITDA margin jumped to 140.46%, showing strong operational cash flow. Overall, the financial performance is robust but may include non-recurring items boosting profits.

Balance Sheet

The balance sheet reflects a healthy equity position with an equity ratio of 74.02% in 2024, indicating strong financial stability. The debt-to-equity ratio improved to 0.07 in 2024, demonstrating low leverage and reduced financial risk. Return on equity surged to 16.67%, supported by high net income, but sustainability is questionable given extraordinary profit levels. The large cash and short-term investments provide liquidity, but the sharp decline in total assets from 2022 to 2024 suggests asset sales or revaluation.

Cash Flow

The company achieved a notable increase in free cash flow from 2023 to 2024, with a growth rate of 27.68%, indicating strong cash generation capabilities. Operating cash flow to net income ratio is robust at 1.16, reflecting efficient cash conversion. Free cash flow to net income ratio of 1.16 shows excellent cash flow relative to profits, although high net income might be an anomaly. Overall, cash flow management appears effective, supporting operations and potential investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.36B	482.00M	383.00M	1.68B	2.79B	2.25B
	Gross Profit
869.00M	114.00M	57.00M	2.61B	2.08B	1.73B
	EBIT
748.00M	-29.00M	52.00M	1.00M	3.73B	1.18B
	EBITDA
1.70B	2.43B	522.00M	35.00M	2.08B	1.37B
	Net Income Common Stockholders
1.02B	541.00M	451.00M	19.00M	1.87B	398.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
332.00M	12.00M	9.00M	3.54B	2.49B	2.10B
	Total Assets
14.97B	4.39B	3.21B	12.89B	25.64B	22.47B
	Total Debt
639.00M	229.00M	256.00M	3.00M	461.00M	4.78B
	Net Debt
307.00M	217.00M	247.00M	-3.54B	-2.03B	2.68B
	Total Liabilities
4.07B	1.11B	1.12B	3.38B	11.24B	10.52B
	Stockholders Equity
8.49B	3.28B	2.08B	9.51B	9.87B	9.10B
Cash Flow		Free Cash Flow
-410.11M	627.00M	508.00M	-387.00M	1.41B	1.77B
	Operating Cash Flow
-410.11M	627.00M	508.00M	-374.00M	1.44B	1.79B
	Investing Cash Flow
1.82B	-41.00M	-41.00M	1.71B	-861.00M	-759.00M
	Financing Cash Flow
287.14M	0.00	-459.00M	-280.00M	-187.00M	-576.00M

Brookfield Asset Management Ltd. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BAM, the sentiment is Negative. The current price of 74.2 is below the 20-day moving average (MA) of 77.69, above the 50-day MA of 73.77, and above the 200-day MA of 73.23, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BAM.

Brookfield Asset Management Ltd. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAM	69 Neutral	C$119.65B	38.07	18.95%	3.25%	27.17%	16.13%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
BN		$95.25B	195.43	1.36%	0.62%	―	―
IGIFF		$7.49B	11.09	12.84%	4.93%	―	―
ONEX	72 Outperform	C$7.31B	12.26	5.40%	0.38%	-10.83%	-34.83%
CIXXF		$3.35B	―	-40.34%	2.48%	―	―
BBUC		$2.72B	―	-247.20%	0.89%	―	―

Brookfield Asset Management Ltd. Class A Corporate Events

Brookfield Asset Management Prices Inaugural $750 Million Senior Notes Offering

Brookfield Asset Management Ltd. announced the pricing of its inaugural public offering of senior notes, issuing $750 million in notes due in 2035 with an interest rate of 5.795% per annum. The proceeds from this offering will be used for general corporate purposes, with the offering expected to close on April 24, 2025, subject to customary conditions. This strategic financial move is expected to bolster Brookfield’s liquidity and operational flexibility, enhancing its position in the global asset management industry.

Spark’s Take on TSE:BAM Stock

According to Spark, TipRanks’ AI Analyst, TSE:BAM is a Neutral.

Brookfield Asset Management Ltd. scores a 68, reflecting its robust financial performance, strong earnings call sentiment, and strategic corporate events. However, high valuation metrics and technical indicators suggest caution. The company is well-positioned for growth, but potential profit volatility and market challenges should be considered by investors.

To see Spark’s full report on TSE:BAM stock, click here.

Brookfield Asset Management Launches Investment Solutions Group Led by Alper Daglioglu

Brookfield Asset Management has announced the appointment of Alper Daglioglu as the head of its newly formed Investment Solutions Group (ISG). The ISG aims to provide innovative, multi-asset portfolio solutions to institutional, private wealth, and family office clients worldwide, leveraging Brookfield’s extensive investment capabilities and partnerships with firms like Oaktree and Castlelake. This strategic move underscores Brookfield’s commitment to enhancing its service offerings and strengthening client relationships by delivering tailored investment solutions.

Spark’s Take on TSE:BAM Stock

According to Spark, TipRanks’ AI Analyst, TSE:BAM is a Neutral.

Brookfield Asset Management’s overall score reflects its robust financial performance, highlighted by significant revenue and profit growth, and strong cash flow generation. While there are concerns about the sustainability of extraordinary profit levels, the company’s low leverage and liquidity position are strengths. The positive sentiment from recent earnings calls and strategic corporate events further supports the stock’s potential. However, high valuation metrics compared to peers and technical indicators suggest caution. Overall, the company is well-positioned for growth, but investors should be aware of the potential for profit volatility and market challenges.

To see Spark’s full report on TSE:BAM stock, click here.

Brookfield Asset Management to Announce Q1 2025 Results

Brookfield Asset Management Ltd. announced it will host a conference call and webcast to discuss its first quarter 2025 results on May 6, 2025. The results will be released earlier that day and will be accessible on the company’s website. This announcement underscores Brookfield’s commitment to transparency and engagement with its stakeholders, providing insights into its financial performance and strategic direction.

Spark’s Take on TSE:BAM Stock

According to Spark, TipRanks’ AI Analyst, (TSE:BAM) is a Neutral.

Brookfield Asset Management’s overall score reflects its robust financial performance, highlighted by significant revenue and profit growth, and strong cash flow generation. While there are concerns about the sustainability of extraordinary profit levels, the company’s low leverage and liquidity position are strengths. The positive sentiment from recent earnings calls and strategic corporate events further supports the stock’s potential. However, high valuation metrics compared to peers and technical indicators suggest caution. Overall, the company is well-positioned for growth, but investors should be aware of the potential for profit volatility and market challenges.

To see Spark’s full report on (TSE:BAM) stock, click here.

Brookfield Asset Management Forms Strategic Partnership with Angel Oak

Brookfield Asset Management has announced a strategic partnership with Angel Oak Companies, acquiring a majority stake in the firm to expand its residential mortgage credit strategies. This partnership aligns with Brookfield’s strategy to collaborate with top-tier credit managers and is expected to enhance Angel Oak’s growth and innovation in providing access to residential mortgage credit, while Angel Oak will continue to operate independently under its current leadership.

Brookfield Asset Management Files First U.S. Annual Report

Brookfield Asset Management Ltd. has completed the filing of its 2024 annual report on Form 10-K with the SEC, marking its first submission of this kind. This move aligns with the financial reporting practices of U.S.-domiciled public companies and signifies Brookfield’s commitment to transparency and regulatory compliance, potentially enhancing its credibility and attractiveness to investors.

Brookfield Asset Management Launches $1 Billion Infrastructure Fund

Brookfield Asset Management announced the successful closing of its first Brookfield Infrastructure Structured Solutions Fund, raising approximately $1 billion. This fund aims to leverage Brookfield’s expertise in global infrastructure to partner with mid-market sponsors, developers, and corporates, focusing on sectors where Brookfield has significant operations. The fund has already made initial investments in Strategic Venue Partners and Origis Energy, with Brookfield contributing $150 million of the committed capital. The launch of this fund represents an expansion into the middle market, addressing growing demand for infrastructure investments driven by trends like decarbonization and digitalization.

Brookfield Asset Management Reports Record 2024 Results and 15% Dividend Increase

Brookfield Asset Management Ltd. announced record financial results for 2024, with over $135 billion in capital inflows and $48 billion in capital deployed. The company’s fee-related earnings increased by 17% year-over-year to a record $677 million for the fourth quarter. Brookfield raised its quarterly dividend by 15%, reflecting its positive financial outlook and the completion of a significant transaction with Brookfield Corporation, which solidifies its control over its asset management business. The company’s strategic position in the alternatives space and its diversified fund offerings are expected to drive future growth.

Brookfield Asset Management Enhances Corporate Structure Through Strategic Acquisition

Brookfield Asset Management has completed a strategic transaction aimed at enhancing its corporate structure by acquiring a significant portion of its asset management business from Brookfield Corporation. This move is expected to broaden shareholder ownership and improve the stock’s eligibility for inclusion in major U.S. market indices, potentially increasing its liquidity and expanding its shareholder base.