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

• Market Cap: C$133.36B
• Dividend Yield: 2.87%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 1.75
• Revenue Growth: 554.20%
• EPS Growth: 37.48%
• Country: CA
• Employees: 2,500
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 1,613,107,700
• 10 Day Avg. Volume: 1,706,558
• 30 Day Avg. Volume: 1,927,126
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$89.34
• Price Target Upside: 8.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: C$87.00 ▲(5.24% Upside)

Brookfield Asset Management Ltd. Class A shows strong financial performance and a positive outlook from the latest earnings call, which are the most significant factors driving the score. However, technical indicators suggest caution, and the high P/E ratio raises valuation concerns. Investors should monitor profit sustainability and market conditions closely.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships expand market reach and diversify revenue streams, strengthening competitive positioning and growth potential.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, ensuring sustainable business expansion.

Negative Factors

Profit Sustainability

Unusually high profit margins may not be sustainable, posing risks to future earnings consistency and financial predictability.

Asset Declines

Declining asset base may impact future revenue generation and operational capacity, affecting long-term growth prospects.

Higher Interest Expenses

Increased interest expenses can strain financial resources, reducing net income and limiting investment opportunities.

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 Ltd. generates revenue through management fees, performance fees, and investment income. The company earns management fees by overseeing and managing assets on behalf of its clients, typically calculated as a percentage of the assets under management (AUM). Performance fees are earned based on achieving specific investment performance benchmarks and are often structured as a share of the profits generated from the managed assets. Additionally, Brookfield earns investment income from its proprietary investments in various sectors, benefiting from dividends, interest, and capital appreciation. The company's earnings are further supported by its strategic partnerships and joint ventures, which enhance its ability to access and manage large-scale investments across the globe.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	482.00M	383.00M	3.63B	2.79B	2.25B
Gross Profit	1.62B	114.00M	57.00M	37.00M	2.08B	1.73B
EBITDA	1.85B	677.00M	522.00M	35.00M	3.74B	1.18B
Net Income	1.52B	541.00M	451.00M	19.00M	1.87B	398.00M
Balance Sheet
Total Assets	16.14B	4.39B	3.21B	3.16B	25.64B	22.47B
Cash, Cash Equivalents and Short-Term Investments	480.00M	12.00M	9.00M	1.00M	2.49B	2.10B
Total Debt	1.25B	219.00M	256.00M	3.00M	461.00M	4.78B
Total Liabilities	5.11B	1.11B	1.12B	784.00M	11.24B	10.52B
Stockholders Equity	8.47B	3.25B	2.08B	2.38B	9.87B	9.10B
Cash Flow
Free Cash Flow	1.18B	595.94M	515.28M	749.09M	1.41B	1.77B
Operating Cash Flow	1.18B	595.94M	515.28M	749.09M	1.44B	1.79B
Investing Cash Flow	-393.51M	-39.03M	-32.59M	1.71B	-861.00M	-759.00M
Financing Cash Flow	-707.21M	-554.06M	-474.55M	-748.13M	-187.00M	-576.00M

Brookfield Asset Management Ltd. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.67
• 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:BAM, the sentiment is Positive. The current price of 82.67 is above the 20-day moving average (MA) of 80.92, above the 50-day MA of 82.16, and above the 200-day MA of 77.17, indicating a bullish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, 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
ONEX	77 Outperform	8.46B	12.02	6.09%	0.32%	-8.63%	-27.09%
IGM	74 Outperform	12.08B	12.42	12.05%	4.41%	-3.20%	-8.50%
BAM	68 Neutral	C$133.36B	39.96	26.64%	2.87%	554.20%	37.48%
BN	65 Neutral	163.31B	158.25	1.39%	0.50%	-20.34%	-21.46%
BBUC	47 Neutral	4.71B	-3.34	1505.08%	0.72%	-2.34%	-301.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Brookfield Asset Management Ltd. Class A Corporate Events

Brookfield Asset Management Prices $750 Million Senior Notes Offering

Brookfield Asset Management announced the pricing of a $750 million public offering of senior notes due in 2055, with an interest rate of 6.077% per annum. The proceeds will be used for general corporate purposes, and the offering is expected to close on September 9, 2025. This move is part of Brookfield’s strategy to leverage its financial strength and market position to support its long-term investment goals and maintain its competitive edge in the asset management industry.

The most recent analyst rating on (TSE:BAM) stock is a Hold with a C$68.00 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.