Brookfield Corporation (BN) AI Stock Analysis

• Market Cap: $138.90B
• Dividend Yield: 0.57%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 203.6
• Beta (1Y): 2.05
• Revenue Growth: -16.50%
• EPS Growth: -50.14%
• Country: CA
• Employees: 250,000
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 1.14
• Shares Outstanding: 1,647,988,400
• 10 Day Avg. Volume: 2,149,363
• 30 Day Avg. Volume: 1,806,711
• PEG Ratio: -22.45
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.96
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 13.88
• Enterprise Value/Ebitda: 2.68
• 1Y Price Target: $90.92
• Price Target Upside: 6.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: C$86.00 ▲(1.01%Upside)

Brookfield Corporation demonstrates strong operational performance with significant earnings growth and asset management momentum. However, challenges such as high leverage, weak cash flow, and a stretched valuation present risks. While the earnings call highlights a positive outlook with increased distributable earnings and capital deployment capacity, caution is advised due to technical indicators suggesting potential overbought conditions.

Positive Factors

Growth Potential

Record bookings bode well for future growth.

Investment Opportunities

The company's value proposition is highlighted in the report, indicating potential investment opportunities.

Negative Factors

EPS Estimates Risk

Consensus' growth expectations are already set, and there is modest risk to '24-'26 EPS estimates.

Brookfield Corporation Business Overview & Revenue Model

Company Description

Brookfield Corporation (BN) is a global alternative asset manager with over a century of experience in owning and operating high-quality assets. The company focuses on real estate, infrastructure, renewable power, private equity, and credit. Brookfield operates across more than 30 countries, providing investors with diversified asset management opportunities and leveraging its expertise in operational excellence and value creation.

How the Company Makes Money

Brookfield Corporation generates revenue through its asset management and investment activities. The company earns management fees from its asset management services, where it oversees investments on behalf of institutional clients, retail investors, and its own balance sheet. Additionally, Brookfield earns performance fees when certain investment benchmarks are met or exceeded. The company also generates income from its direct investments in real assets, which include rental income from real estate properties, tolls from infrastructure assets, revenue from renewable energy generation, and returns from private equity investments. Strategic partnerships and joint ventures further enhance Brookfield's ability to access high-quality assets and capital, contributing to its overall earnings.

Brookfield Corporation Financial Statement Overview

Summary

Brookfield Corporation shows operational efficiency with strong EBIT and EBITDA margins. However, the decline in revenue and net income growth, high leverage, and weak cash flow performance present potential risks. The balance sheet remains stable with a considerable asset base, but improvements in cash flow and revenue growth are needed for long-term financial health.

Income Statement

Brookfield Corporation's TTM (Trailing-Twelve-Months) shows a decrease in total revenue and net income compared to the previous year. The gross profit margin improved from 16.9% to 27.4%, but the net profit margin dropped to 0.7%. The EBIT and EBITDA margins are relatively strong at 10.6% and 33.6%, respectively, indicating operational efficiency. However, the revenue growth rate from the previous year is negative, which is a concern for future earnings stability.

Balance Sheet

The balance sheet reflects a stable equity base despite high total liabilities. The debt-to-equity ratio stands at 5.11, indicating high leverage, typical in asset management. The equity ratio is 9.4%, showing a solid equity position relative to total assets. Return on equity has decreased significantly, indicating challenges in generating returns from equity. Despite high leverage, the company maintains a substantial asset base.

Cash Flow

The cash flow statement reveals a weak free cash flow position with a significant decline in the free cash flow growth rate. Operating cash flow is positive but low relative to net income, and the free cash flow to net income ratio is negative, indicating cash flow challenges. This situation could impact the company’s ability to finance operations and growth without external funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.01B	97.99B	92.77B	75.73B	62.75B
Gross Profit	18.07B	16.58B	14.26B	11.73B	15.37B
EBITDA	29.19B	30.69B	25.05B	28.75B	14.55B
Net Income	641.00M	1.13B	5.20B	12.39B	707.00M
Balance Sheet
Total Assets	490.42B	490.10B	441.28B	391.00B	343.70B
Cash, Cash Equivalents and Short-Term Investments	20.18B	11.22B	21.96B	19.66B	9.93B
Total Debt	234.79B	233.71B	214.07B	175.93B	148.40B
Total Liabilities	325.04B	321.85B	299.39B	256.26B	221.05B
Stockholders Equity	45.98B	45.78B	43.75B	46.35B	35.84B
Cash Flow
Free Cash Flow	-3.60B	-1.60B	1.51B	993.00M	4.33B
Operating Cash Flow	7.57B	6.47B	8.75B	7.87B	8.34B
Investing Cash Flow	-29.96B	-29.76B	-39.65B	-21.05B	-13.87B
Financing Cash Flow	26.90B	19.93B	32.46B	16.26B	8.70B

Brookfield Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BN, the sentiment is Positive. The current price of 85.14 is above the 20-day moving average (MA) of 81.37, above the 50-day MA of 79.24, and above the 200-day MA of 78.49, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 91.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BN.

Brookfield Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SII	79 Outperform	$2.43B	34.88	15.69%	2.44%	19.98%	18.77%
IGM	73 Outperform	C$10.16B	10.80	12.84%	5.23%	-3.85%	-4.41%
ONEX	72 Outperform	C$7.73B	12.96	5.40%	0.36%	-10.83%	-34.83%
BAM	69 Neutral	C$121.54B	38.67	18.95%	3.20%	27.17%	16.13%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
BN	65 Neutral	$138.90B	203.62	1.36%	0.57%	-16.50%	-50.14%
BBUC	52 Neutral	$4.12B	―	-247.20%	0.80%	-11.38%	-259.72%

Brookfield Corporation Corporate Events

Brookfield Corporation Retains Series 42 Preferred Shares Amid Conversion Shortfall

Brookfield Corporation announced that the conversion of its Series 42 Preferred Shares into Series 43 Shares will not proceed as the number of shares tendered for conversion was below the required threshold. As a result, holders of Series 42 Shares will retain their current shares. This decision maintains the status quo for shareholders and reflects the company’s ongoing commitment to managing its capital structure effectively.

The most recent analyst rating on (TSE:BN) stock is a Buy with a C$50.50 price target. To see the full list of analyst forecasts on Brookfield Corporation stock, see the TSE:BN Stock Forecast page.

Brookfield Corporation Reports Strong Earnings and Strategic Growth

Brookfield Corporation reported a 27% increase in distributable earnings, reaching $1.5 billion, and repurchased $850 million of shares in 2025. The company experienced strong growth in its asset management and wealth solutions businesses, with a record $165 billion in deployable capital. Despite market volatility, Brookfield remains optimistic about its long-term outlook, aiming for 15%+ returns for shareholders. The acquisition of a majority stake in Angel Oak is expected to further enhance its asset management capabilities.