Fundamentals snapshot
BAM · NYQ · Financial Services · Asset Management
Current price
$46.05
52-week range
$42.20 - $56.37
Market cap
$73.55B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $2.59B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Brookfield Asset Management (BAM) is like a big financial manager that invests money from wealthy individuals and large organizations like pension funds into different types of businesses and properties. They make their money by managing these investments and taking a slice of the profits or charging fees for their services. This is important because it shows how they grow their own business by successfully growing the money they manage for others.
Brookfield Asset Management's story began in 1899 with a utility company in Brazil. Over the decades, it evolved, focusing on real assets and expanding globally. A significant shift occurred in 2001 when it transitioned from primarily investing its own capital to becoming an asset manager, meaning it started managing money for clients. In December 2022, the company spun off its asset management division into the publicly traded entity known today as Brookfield Asset Management Ltd., while its parent company became Brookfield Corporation. This move allowed the asset management business to focus on its core function of managing investments for a diverse range of clients worldwide.
Brookfield Asset Management acts as a financial guide for large organizations and wealthy individuals, helping them invest their money. Think of them as a specialized bank for big players like pension funds, insurance companies, and endowments. They manage these clients' money by investing it in various assets like real estate, infrastructure (like bridges and power grids), renewable energy projects, private companies, and loans (credit). Their goal is to grow this money over the long term by carefully selecting and managing these investments.
This part of Brookfield focuses on investing in and managing essential physical structures and systems that keep economies running. This includes things like toll roads, airports, pipelines, and electricity grids. They invest in these assets because they are crucial for society and tend to generate steady income, often linked to inflation, which helps protect against rising prices. Brookfield aims to acquire, improve, and operate these infrastructure assets to provide reliable services and generate long-term returns for their investors.
Brookfield is a major player in investing in and developing clean energy projects. This segment focuses on assets like solar farms, wind turbines, and hydroelectric power plants that generate electricity without relying on fossil fuels. They also invest in what's called 'transition' assets, which are part of the shift towards a more sustainable energy future. The goal here is to build a portfolio of green energy sources that provide stable, long-term income while contributing to environmental sustainability.
In its real estate business, Brookfield acts as a large-scale investor in properties around the world. This includes a wide variety of assets such as office buildings, shopping centers, apartment complexes, and industrial warehouses. They don't just buy properties; they also actively manage them, aiming to improve their value and generate consistent rental income. Their strategy involves acquiring high-quality real estate, enhancing its operations, and holding it for the long term to provide steady returns to their clients.
This segment involves Brookfield investing in and acquiring private companies, meaning businesses that are not publicly traded on a stock exchange. They focus on companies that are essential to industries and services, often looking for opportunities to buy businesses that are undervalued or could benefit from operational improvements. Brookfield's approach is to take an active role in managing these companies, aiming to grow their value over time and eventually sell them for a profit, thereby generating returns for their investors.
Brookfield's credit business involves providing loans and other forms of debt financing to companies and projects. This can include direct lending, where they act as the lender, or investing in various types of debt securities. They leverage their expertise in other areas, like real estate and infrastructure, to identify attractive credit opportunities. The aim is to generate income from interest payments on these loans and debt investments, offering investors a way to earn returns through lending rather than direct ownership of assets.
Brookfield's current strategy centers on growing its asset management business by attracting more capital from both institutional investors and a growing segment of wealthy individuals. They are focused on expanding their offerings in areas like infrastructure, renewable energy, and private equity, emphasizing long-term investments. A key priority is to increase their 'fee-related earnings' (the income generated from managing assets), making the business more predictable and stable. They are also looking to expand their insurance and retirement solutions, which provide a steady source of long-term capital for investments.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $2.6B. Interest coverage 11.2x.
Brookfield Asset Management Ltd.'s profit covers its interest bill about 11.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $4.09B Interest coverage 11.24x This is the baseline the peer rows are being compared against.
Total debt $56.16B Interest coverage 0.16x -99% vs BAM Carries about 70.4x less debt cushion than BAM.
Total debt $41.88B Interest coverage 22.32x +99% vs BAM Carries about 2.0x more debt cushion than BAM.
Total debt $14.87B Interest coverage 1.16x -90% vs BAM Carries about 9.7x less debt cushion than BAM.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know