Brookfield Corporation (BN) AI Stock Analysis

• Market Cap: $151.98B
• Dividend Yield: 0.51%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 147.3
• Beta (1Y): 2.00
• Revenue Growth: -20.34%
• EPS Growth: -21.46%
• Country: CA
• Employees: 250,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.10
• Shares Outstanding: 1,648,995,600
• 10 Day Avg. Volume: 1,586,757
• 30 Day Avg. Volume: 1,659,433
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 7.53
• Enterprise Value/Gross Profit: 28.86
• Enterprise Value/Ebitda: 20.92
• 1Y Price Target: $104.02
• Price Target Upside: 12.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: C$97.00 ▲(5.25% Upside)

Brookfield Corporation's overall stock score is driven by strong strategic initiatives and financial growth highlighted in the earnings call. However, financial performance is hindered by high leverage, low ROE, and negative free cash flow, while the valuation indicates the stock may be overvalued. Technical analysis shows moderate momentum, adding a neutral influence to the score.

Positive Factors

Capital Generation

BN is viewed as a capital compounder that is on the cusp of seeing a significant step-up in excess capital generation, resulting in faster book value growth, higher ROE and a greater return of capital opportunities.

Share Repurchase

Leading to Q1/25 reporting, BN had repurchased $0.9B in shares, representing a meaningful acceleration relative to recent history.

Stock Performance

BN remains one of the best-performing alternative asset manager stocks year to date calendar 2025 with the discount to NAV narrowing meaningfully.

Negative Factors

Enterprise Value Discount

Improving cash flow dynamics in the Real Estate business is the biggest source of BN's enterprise value discount.

Trading Discount

BN is currently trading at a discount to other capital-heavy Alternative Managers on both a DE and Price-to-Book basis.

Brookfield Corporation Business Overview & Revenue Model

Company Description

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

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	81.04B	86.01B	95.92B	92.77B	75.73B	62.75B
Gross Profit	21.16B	18.07B	14.52B	14.26B	11.73B	15.37B
EBITDA	29.19B	29.19B	30.69B	25.05B	28.75B	14.55B
Net Income	612.00M	641.00M	1.13B	2.06B	3.97B	-134.00M
Balance Sheet
Total Assets	491.58B	490.42B	490.10B	441.28B	391.00B	343.70B
Cash, Cash Equivalents and Short-Term Investments	12.44B	20.18B	16.89B	21.96B	19.66B	15.42B
Total Debt	245.86B	234.79B	233.71B	214.07B	175.93B	156.62B
Total Liabilities	332.65B	325.04B	321.85B	299.39B	256.26B	221.05B
Stockholders Equity	45.27B	45.98B	45.78B	43.75B	46.35B	35.84B
Cash Flow
Free Cash Flow	-2.17B	-3.43B	-1.63B	1.45B	984.26M	4.56B
Operating Cash Flow	8.83B	7.21B	6.59B	8.40B	7.80B	8.78B
Investing Cash Flow	-28.79B	-20.09B	-2.59B	-27.57B	-18.62B	-1.19B
Financing Cash Flow	20.62B	16.97B	-7.43B	20.82B	13.67B	-4.23B

Brookfield Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 92.16 is above the 20-day moving average (MA) of 90.31, above the 50-day MA of 89.55, and above the 200-day MA of 82.10, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 74.42 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
ONEX	77 Outperform	C$8.21B	11.66	6.19%	0.33%	-8.63%	-27.09%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
BN	65 Neutral	$151.98B	147.29	1.79%	0.51%	-20.34%	-21.46%
IGIFF	―	$8.52B	12.23	12.60%	4.41%	―	―
SII	―	$1.75B	34.95	15.07%	1.77%	―	―
BBUC	―	$3.27B	―	-301.45%	0.74%	―	―
BAM	70 Neutral	C$130.11B	38.99	26.64%	2.94%	554.20%	37.48%

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.