Brookfield Asset Management Stock Beneish M Score

BAM Stock  USD 56.11  0.64  1.15%   
This module uses fundamental data of Brookfield Asset to approximate the value of its Beneish M Score. Brookfield Asset M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Brookfield Asset Piotroski F Score and Brookfield Asset Altman Z Score analysis.
  
At this time, Brookfield Asset's Net Debt To EBITDA is very stable compared to the past year. As of the 25th of November 2024, Debt To Equity is likely to grow to 0.25, while Net Debt is likely to drop about 234.7 M. At this time, Brookfield Asset's EV To Sales is very stable compared to the past year. As of the 25th of November 2024, Free Cash Flow Per Share is likely to grow to 2.23, while Book Value Per Share is likely to drop 4.96.
At this time, it appears that Brookfield Asset Man is a possible manipulator. The earnings manipulation may begin if Brookfield Asset's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Brookfield Asset executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Brookfield Asset's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.17
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.81

Focus
Expense Coverage

1.6

Focus
Gross Margin Strengs

0.94

Focus
Accruals Factor

1.6

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

1.0

Focus

Brookfield Asset Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Brookfield Asset's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables782.8 M824 M
Notably Down
Very volatile
Total Revenue363.9 M383 M
Notably Down
Slightly volatile
Total AssetsB3.2 B
Notably Down
Pretty Stable
Total Current Assets850.2 M895 M
Notably Down
Slightly volatile
Non Current Assets Total2.2 B2.3 B
Notably Down
Pretty Stable
Property Plant Equipment74.3 M78.2 M
Notably Down
Pretty Stable
Depreciation And Amortization380.2 M400.2 M
Notably Down
Slightly volatile
Selling General Administrative84.9 M56 M
Way Up
Pretty Stable
Total Current Liabilities1.1 B1.1 B
Notably Down
Pretty Stable
Non Current Liabilities Total4.8 MM
Notably Down
Pretty Stable
Operating Income855 M900 M
Notably Down
Slightly volatile
Gross Profit Margin0.140.1488
Notably Down
Slightly volatile

Brookfield Asset Man Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Brookfield Asset's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Brookfield Asset in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Brookfield Asset's degree of accounting gimmicks and manipulations.

About Brookfield Asset Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Income

855 Million

At this time, Brookfield Asset's Operating Income is very stable compared to the past year.

Brookfield Asset Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Brookfield Asset. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables13.9B54M6.9B782M824M782.8M
Total Revenue2.2B2.3B2.8B3.6B383M363.9M
Total Assets324.0B22.5B25.6B12.9B3.2B3.0B
Total Current Assets34.8B8.9B9.5B6.4B895M850.3M
Net Debt136.6B2.7B(2.0B)(3.5B)247M234.7M
Short Term Debt15.7B4.8B461M3M256M243.2M
Long Term Debt69.7B108.8B130.0B148.4B175.9B0.0
Operating Income1.2B1.2B3.7B2.7B900M855M
Investments(36.7B)(6.5B)(21.0B)1.7B1.4B1.5B

Brookfield Asset ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Brookfield Asset's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Brookfield Asset's managers, analysts, and investors.
Environmental
Governance
Social

About Brookfield Asset Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Brookfield Asset Management's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Brookfield Asset using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Brookfield Asset Management based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Brookfield Asset Man is a strong investment it is important to analyze Brookfield Asset's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Brookfield Asset's future performance. For an informed investment choice regarding Brookfield Stock, refer to the following important reports:
Check out Brookfield Asset Piotroski F Score and Brookfield Asset Altman Z Score analysis.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brookfield Asset. If investors know Brookfield will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brookfield Asset listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
1.46
Earnings Share
1.09
Revenue Per Share
10.449
Quarterly Revenue Growth
5.406
The market value of Brookfield Asset Man is measured differently than its book value, which is the value of Brookfield that is recorded on the company's balance sheet. Investors also form their own opinion of Brookfield Asset's value that differs from its market value or its book value, called intrinsic value, which is Brookfield Asset's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brookfield Asset's market value can be influenced by many factors that don't directly affect Brookfield Asset's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brookfield Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield Asset is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield Asset's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.