Brookfield Asset Management (BAM Stock) Analysis:
Based on the Brookfield Asset Management Inc BAM stock forecast from 4 analysts, the average analyst target price for Brookfield Asset Management Inc is USD 62.75 over the next 12 months. Brookfield Asset Management Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Brookfield Asset Management Inc is Neutral, which is based on 7 positive signals and 8 negative signals. At the last closing, Brookfield Asset Management Inc’s stock price was USD 47.57. Brookfield Asset Management Inc’s stock price has changed by -3.27% over the past week, -2.88% over the past month and -16.35% over the last year.
About BAM Stock (BAM:NYE)
Brookfield Asset Management 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 Asset Management Inc. was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia. Address: Brookfield Place, Toronto, ON, Canada, M5J 2T3
|Target Price Action||Rating Action||Analyst||Rating||Price||Date|
|JP Morgan & Company||
USD 71.5 » USD 62.5
|Deutsche Bank Capital||
USD 57 » USD 52
|JP Morgan & Company||
|Maintains||Deutsche Bank Capital||
USD 60 » USD 57
USD 72 » USD 68
USD 68 » USD 71.5
|Target Down||Target Lowered by||Deutsche Bank Capital||
USD 64 » USD 62
|Deutsche Bank Capital||
USD 59 » USD 64
|Target Down||Maintains||Credit Suisse||
USD 63 » USD 68
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
High dividend returns
BAM stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
BAM stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
Superior Dividend Growth
This stock has shown top quartile dividend growth in the previous 5 years compared to its sector.
What we don’t like:
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
BAM stock is trading high compared to its peers median on a price to book value basis.
Poor return on equity
The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
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