Brookfield Corporation (BN) AI Stock Analysis

• Market Cap: $156.62B
• Dividend Yield: 0.52%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 149.2
• Beta (1Y): 2.02
• Revenue Growth: -20.34%
• EPS Growth: -21.46%
• Country: CA
• Employees: 250,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.73
• Shares Outstanding: 2,473,792,000
• 10 Day Avg. Volume: 1,697,332
• 30 Day Avg. Volume: 2,565,145
• PEG Ratio: -2.71
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -25.30
• Enterprise Value/Market Cap: 3.90
• Enterprise Value/Revenue: 8.03
• Enterprise Value/Gross Profit: 25.48
• Enterprise Value/Ebitda: 19.81
• 1Y Price Target: $76.79
• Price Target Upside: 21.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 61 Neutral
• Price Target: C$67.00 ▲(5.83% Upside)

Brookfield Corporation's overall stock score reflects a mix of strengths and challenges. The most significant factor is the company's financial performance, which is under pressure due to high leverage and declining revenue growth. However, strong operational efficiency and strategic initiatives highlighted in the earnings call provide a positive outlook. Technical analysis suggests stable trends, while valuation remains a concern due to a high P/E ratio and low dividend yield. The company's ability to navigate financial pressures and capitalize on strategic opportunities will be key to future performance.

Positive Factors

Strategic Expansion

The acquisition of Just Group enhances Brookfield's insurance business, providing a strategic foothold in the pension risk transfer market, which can drive long-term growth and diversification.

AI Infrastructure Strategy

Brookfield's AI infrastructure strategy positions it to leverage technological advancements, potentially enhancing operational efficiencies and creating new revenue streams in the long term.

Record Deployable Capital

Having a substantial amount of deployable capital allows Brookfield to seize investment opportunities in emerging trends like digitalization and decarbonization, supporting sustainable growth.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Brookfield's ability to invest in new opportunities and manage economic downturns effectively.

Declining Revenue Growth

Declining revenue growth reflects challenges in market conditions, which could impact Brookfield's ability to maintain its competitive position and profitability over time.

Negative Free Cash Flow Growth

A significant decline in free cash flow growth suggests potential liquidity challenges, which could hinder Brookfield's capacity to fund operations and strategic initiatives.

Brookfield Corporation Business Overview & Revenue Model

Company Description

Brookfield Corporation (BN) is a global alternative asset management company focused on real estate, renewable power, infrastructure, and private equity. With a diversified portfolio, Brookfield operates in various sectors, leveraging its expertise to manage investments and deliver value to its stakeholders. The company engages in the acquisition, development, and management of assets, providing a range of services that include investment management and operational oversight.

How the Company Makes Money

Brookfield Corporation generates revenue primarily through its asset management fees, which are earned by managing investment funds and capital on behalf of institutional and retail investors. Key revenue streams include management fees from its various funds, performance fees based on fund performance, and income generated from its direct investments in real estate, infrastructure, and renewable energy projects. Additionally, the company often partners with institutional investors, governments, and global corporations to co-invest in large-scale projects, further enhancing its earnings potential. The company’s diversified investment strategy and strong operational capabilities allow it to capitalize on various market opportunities, contributing to its overall financial performance.

Brookfield Corporation Financial Statement Overview

Summary

Brookfield Corporation exhibits strong operational efficiency with stable EBIT and EBITDA margins, but faces challenges with revenue growth and net profitability. The company's high leverage and low ROE highlight financial risks, while negative free cash flow further adds to financial challenges. Despite these issues, the company efficiently converts income into operating cash flow, suggesting strong operational cash management.

Income Statement

The TTM (Trailing-Twelve-Months) data shows a gross profit margin of approximately 26.3% and a net profit margin of 0.75%, indicating robust operational efficiency but weak net profitability. The revenue decreased from $97.99 billion in 2023 to $81.28 billion in the TTM period, reflecting a significant decline in revenue growth. Despite the decline in revenue, the EBIT margin remains strong at 22.9%. The company shows stable EBITDA margins at 36.5%, highlighting good profitability at the operating level.

Balance Sheet

The debt-to-equity ratio is high at 5.43, indicating significant leverage, which can pose a risk. The return on equity (ROE) is relatively low at 1.35% for the TTM period, suggesting limited profitability from the equity financed by shareholders. The equity ratio is at 9.2%, reflecting low equity in relation to total assets, which may suggest higher financial risk.

Cash Flow

The free cash flow growth rate is negative, showing a decline from -$3.60 billion to -$2.14 billion, which points to ongoing challenges in generating free cash flow. Operating cash flow to net income ratio is strong at approximately 14.61 for the TTM period, signifying efficient conversion of income to cash. However, the free cash flow to net income ratio is negative, indicating that the company is not generating positive free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.08B	86.01B	95.92B	92.77B	75.73B	62.75B
Gross Profit	23.96B	18.07B	14.52B	14.26B	11.73B	15.37B
EBITDA	30.83B	29.19B	30.69B	25.05B	28.75B	14.55B
Net Income	841.00M	641.00M	1.13B	2.06B	3.97B	-134.00M
Balance Sheet
Total Assets	506.07B	490.42B	490.10B	441.28B	391.00B	343.70B
Cash, Cash Equivalents and Short-Term Investments	13.70B	20.18B	16.89B	21.96B	19.66B	15.42B
Total Debt	250.63B	234.79B	233.71B	214.07B	175.93B	156.62B
Total Liabilities	344.42B	325.04B	321.85B	299.39B	256.26B	221.05B
Stockholders Equity	46.60B	45.98B	45.78B	43.75B	46.35B	35.84B
Cash Flow
Free Cash Flow	-1.22B	-3.43B	-1.63B	1.45B	984.26M	4.56B
Operating Cash Flow	10.15B	7.21B	6.59B	8.40B	7.80B	8.78B
Investing Cash Flow	-27.89B	-20.09B	-2.59B	-27.57B	-18.62B	-1.19B
Financing Cash Flow	19.92B	16.97B	-7.43B	20.82B	13.67B	-4.23B

Brookfield Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.31
• 50DMA: Positive
• 100DMA: Positive
• 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:BN, the sentiment is Positive. The current price of 63.31 is below the 20-day moving average (MA) of 63.36, above the 50-day MA of 62.20, and above the 200-day MA of 55.94, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.04 is Neutral, 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	$3.11B	43.96	15.07%	1.40%	40.04%	22.21%
ONEX	78 Outperform	C$7.99B	11.31	6.19%	0.34%	-8.63%	-27.09%
IGM	74 Outperform	$12.74B	12.88	12.60%	4.14%	-3.20%	-8.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAM	66 Neutral	C$122.47B	36.70	26.64%	3.09%	554.20%	37.48%
BN	61 Neutral	$156.62B	149.24	1.83%	0.52%	-20.34%	-21.46%
BBUC	45 Neutral	$4.94B	―	-301.45%	0.68%	-2.34%	-301.85%

Brookfield Corporation Corporate Events

Brookfield Corporation Reports Strong Q2 Results and Announces Stock Split

Brookfield Corporation reported strong financial results for the second quarter of 2025, with a 13% increase in distributable earnings before realizations to $1.3 billion. The company announced a three-for-two stock split and highlighted over $55 billion in asset monetizations, enhancing its capital position to a record $177 billion. This positions Brookfield to capitalize on investment opportunities and deliver long-term returns to shareholders. The acquisition of Just Group is expected to significantly expand Brookfield’s insurance assets, further strengthening its market position.

The most recent analyst rating on (TSE:BN) stock is a Buy with a C$51.25 price target. To see the full list of analyst forecasts on Brookfield Corporation stock, see the TSE:BN Stock Forecast page.

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.