Brookfield Asset Management Ltd. (BAM) Stock Analysis
Brookfield Asset Management Ltd. (BAM) Stock Analysis
Analysis from 10-Q filed 2025-11-10. Data as of Q4 2025.
Overall Grade: F (Concerning)
Brookfield Asset Management Ltd. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 46.6% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 46.6% provides financial flexibility for growth and shareholder returns.
Explore Brookfield Asset Management Ltd.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Brookfield Asset Management Ltd. earns N/A ROIC
Brookfield Asset Management Ltd.'s trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-11-10.
| Metric | BAM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 14.1% | Adequate | Moderate equity returns |
Cash Flow: Brookfield Asset Management Ltd. generates $2.2B FCF at 46.6% margin, positive NaN/8 quarters
Brookfield Asset Management Ltd. generated $2.2B in free cash flow (TTM), a 46.6% FCF margin, a margin that ranks Top 25% in Financials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-10.
| Metric | BAM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 46.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.2B | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Brookfield Asset Management Ltd. at 0.0x leverage
Brookfield Asset Management Ltd.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-10.
| Metric | BAM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Brookfield Asset Management Ltd. trades at 34.0x earnings
Brookfield Asset Management Ltd. trades at a P/E of 34.0x. Free cash flow yield of -5.4% reflects market expectations for growth.
| Metric | BAM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 34.0x | Adequate | Premium valuation |
| EV/Sales | -8.8x | Excellent | Attractive revenue multiple |
| FCF Yield | -5.4% | Warning | Lower cash yield |
Capital Allocation: Brookfield Asset Management Ltd. returns -7.7% shareholder yield
Brookfield Asset Management Ltd.'s total shareholder yield is -7.7% (dividends -6.7% + buybacks -1.0%). Source: 10-Q filed 2025-11-10.
| Metric | BAM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | -7.7% | Warning | Dividend + buyback yield combined |
| Buyback Yield | -1.0% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $3.2B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 46.6% | Top 25% | 2.1x above |
| Return on Equity (ROE) | 14.1% | Top 50% | 1.3x above |
| P/E Ratio | 34.0x | N/A | - |
Financial Scorecard
| Metric | BAM | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 46.6% | Excellent | Top 25% of sector (median: 21.7%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 34.0x | Adequate | Growth premium |
| Free Cash Flow Yield | -5.4% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Brookfield Asset Management Ltd.'s Return on Invested Capital (ROIC)?
Brookfield Asset Management Ltd. (BAM) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Brookfield Asset Management Ltd.'s Free Cash Flow Margin?
Brookfield Asset Management Ltd. (BAM) has a free cash flow margin of 46.6%, generating $2.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Brookfield Asset Management Ltd. stock overvalued or undervalued?
Brookfield Asset Management Ltd. (BAM) trades at a P/E ratio of 34.0x, which is above the sector median of N/A. The EV/Sales multiple is -8.8x.
Q: What is Brookfield Asset Management Ltd.'s revenue and earnings growth?
Brookfield Asset Management Ltd. (BAM) grew revenue by 21.0% year-over-year. Earnings per share increased by 11.9% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is Brookfield Asset Management Ltd. buying back stock?
Brookfield Asset Management Ltd. (BAM) repurchased $412.0 million of stock over the trailing twelve months.
Q: How does Brookfield Asset Management Ltd. compare to competitors in Financials?
Compared to other companies in Financials, Brookfield Asset Management Ltd. (BAM) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 46.6% exceeds the sector median of 21.7% (Top 14% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Brookfield Asset Management Ltd.?
Brookfield Asset Management Ltd. (BAM) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-10. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.