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

• Market Cap: C$130.89B
• Dividend Yield: 2.97%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.70
• Revenue Growth: 283.20%
• EPS Growth: 33.30%
• 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: 884,488
• 30 Day Avg. Volume: 1,190,818
• PEG Ratio: 3.73
• Price to Book (P/B): 10.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -222.86
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 15.28
• Enterprise Value/Gross Profit: 97.47
• Enterprise Value/Ebitda: 28.93
• 1Y Price Target: C$82.99
• Price Target Upside: 2.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: C$87.00 ▲(7.18%Upside)

Brookfield Asset Management Ltd. Class A receives a strong overall score due to its robust financial performance, strategic initiatives, and positive corporate developments. While the high P/E ratio suggests potential overvaluation, the company's strategic partnerships and resilience in market volatility support its growth prospects. Investors should consider potential profit volatility due to extraordinary income.

Positive Factors

Growth Potential

BAM stock provides investors access to a ‘pure-play’ alternative asset management franchise with a proven track record for double-digit fee-bearing capital growth, stable fee rates and margins coupled with the financial and operating synergies of BN’s capital.

Market Position

BAM has the #1 infrastructure/renewables business in the world, which is expected to be one of the fastest growing segments over the next 10 years.

Negative Factors

Fundraising Challenges

Fundraising missed expectations, although flagship fundraises can create quarterly volatility.

Valuation Concerns

Valuation remains at upper-end of historical range with BAM trading at 34x DE.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.00M	383.00M	3.63B	2.79B	2.25B
Gross Profit	114.00M	57.00M	37.00M	2.08B	1.73B
EBITDA	677.00M	522.00M	35.00M	3.74B	1.18B
Net Income	541.00M	451.00M	19.00M	1.87B	398.00M
Balance Sheet
Total Assets	4.39B	3.21B	12.89B	25.64B	22.47B
Cash, Cash Equivalents and Short-Term Investments	12.00M	9.00M	3.54B	2.49B	2.10B
Total Debt	219.00M	256.00M	3.00M	461.00M	4.78B
Total Liabilities	1.11B	1.12B	3.38B	11.24B	10.52B
Stockholders Equity	3.25B	2.08B	9.51B	9.87B	9.10B
Cash Flow
Free Cash Flow	627.00M	508.00M	-387.00M	1.41B	1.77B
Operating Cash Flow	627.00M	508.00M	-374.00M	1.44B	1.79B
Investing Cash Flow	-41.00M	-41.00M	1.71B	-861.00M	-759.00M
Financing Cash Flow	-583.00M	-459.00M	-280.00M	-187.00M	-576.00M

Brookfield Asset Management Ltd. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BAM, the sentiment is Positive. The current price of 81.17 is above the 20-day moving average (MA) of 76.77, above the 50-day MA of 77.40, and above the 200-day MA of 75.28, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 73.58 is Negative, neither overbought nor oversold. The STOCH value of 91.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	C$130.89B	43.37	18.95%	2.97%	283.20%	33.30%
Sector *	67 Neutral	$16.64B	11.61	9.79%	3.78%	11.89%	-8.13%
BN	―	$104.47B	214.17	1.36%	0.55%	―	―
IGIFF	―	$7.40B	10.95	12.84%	5.28%	―	―
ONEX	72 Outperform	C$7.80B	13.30	5.40%	0.35%	-10.83%	-34.83%
CIXXF	―	$3.33B	―	-40.34%	2.52%	―	―
BBUC	―	$2.88B	―	-247.20%	0.83%	―	―

Brookfield Asset Management Ltd. Class A Corporate Events

Brookfield and Google Partner on Landmark Hydro Power Agreement

Brookfield Asset Management, in collaboration with Google, has announced a groundbreaking Hydro Framework Agreement to deliver up to 3,000 MW of carbon-free hydroelectric capacity across the United States. This agreement, the largest corporate clean power deal for hydroelectricity, includes over $3 billion in contracts for the Holtwood and Safe Harbor facilities in Pennsylvania, providing 670 MW of capacity. The initiative supports Google’s goal of operating on 24/7 carbon-free energy and represents a significant advancement in Brookfield’s strategy to offer flexible, clean energy solutions to the tech sector. The agreement allows Google to procure electricity from hydroelectric assets that will be upgraded to extend their lifespan, initially focusing on the mid-Atlantic and mid-continent electricity markets. This partnership highlights the critical role of hydropower in meeting the increasing energy demands driven by digitalization and AI, while also maintaining commitments to existing power consumers.

The most recent analyst rating on (TSE:BAM) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on Brookfield Asset Management Ltd. Class A stock, see the TSE:BAM Stock Forecast page.

Brookfield Asset Management to Announce Q2 2025 Results

Brookfield Asset Management Ltd. announced it will host its second quarter 2025 results conference call and webcast on August 6, 2025. The results, which will be released earlier that morning, are anticipated to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:BAM) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on Brookfield Asset Management Ltd. Class A stock, see the TSE:BAM Stock Forecast page.

Brookfield Announces $10 Billion AI Infrastructure Investment in Sweden

Brookfield Asset Management announced a significant investment of up to SEK 95 billion ($10 billion) to develop AI infrastructure in Sweden, marking one of its largest AI investments in Europe. This initiative will establish a new AI center in Strängnäs, enhancing Sweden’s AI capabilities and creating thousands of jobs. The investment underscores Brookfield’s commitment to supporting Sweden’s ambition to become a leading AI hub in Europe, while also bolstering the company’s presence in the AI value chain.

The most recent analyst rating on (TSE:BAM) stock is a Buy with a C$46.00 price target. To see the full list of analyst forecasts on Brookfield Asset Management Ltd. Class A stock, see the TSE:BAM Stock Forecast page.

Brookfield Asset Management Reports Record First-Quarter Results

Brookfield Asset Management announced record first-quarter results with a 26% year-over-year increase in fee-related earnings, reaching nearly $700 million. The company raised $25 billion in the quarter and over $140 billion in the past year, with significant inflows into its real estate flagship strategy, now set to be its largest ever. Brookfield’s strong performance is attributed to its exposure to investment megatrends and its ability to deploy nearly $120 billion of available capital, positioning it well to deliver long-term value to clients.

Brookfield Asset Management Elects Full Board at Annual Meeting

Brookfield Asset Management Ltd. announced the successful election of all 12 nominees to its board of directors during its annual shareholders meeting held on May 5, 2025. This election reflects strong shareholder support and is expected to reinforce the company’s strategic direction and governance, potentially impacting its operations and stakeholder confidence positively.

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.

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.