Brookfield Asset Management Inc Class A Limited Voting Shares (BAM)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Generates $1.4 billion in annual free cash flow (1.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 22.3% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.29, providing financial flexibility
• Altman Z-Score of 7.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($13) with negative 262% margin of safety—limited downside protection

AI Analysis

Brookfield Asset Management Inc Class A Limited Voting Shares is a large-cap financial services company valued at $78.6 billion. The business generates $4.8 billion in annual revenue with a 11.6% net margin and $1.4 billion in free cash flow. From a quality standpoint, Brookfield shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 7.5 confirms fortress-level solvency. On valuation, the stock is trading at a premium 31.0x earnings, with trades far above its Graham Number ($13) with no margin of safety. Growth dynamics show revenue growing at 930.0% and profit growth of 201.1%. The 3.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Brookfield's 930% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $1.4 billion in annual free cash flow (1.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer