| BN Stock | | | 86.04 0.89 1.05% |
Based on the measurements of profitability obtained from Brookfield's financial statements, Brookfield's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Brookfield's ability to earn profits and add value for shareholders. As of the 30th of November 2024,
EV To Sales is likely to grow to 3.99, while
Price To Sales Ratio is likely to drop 0.61. At this time, Brookfield's
Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 30th of November 2024,
Operating Income is likely to grow to about 23.5
B, while
Net Income is likely to drop about 3
B.
For Brookfield profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brookfield to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Brookfield utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brookfield's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brookfield over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Brookfield's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookfield is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookfield'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.
Brookfield Total Debt vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brookfield's current stock value. Our valuation model uses many indicators to compare Brookfield value to that of its competitors to determine the firm's financial worth.
Brookfield is number one stock in shares owned by institutions category among its peers. It also is the top company in total debt category among its peers making up about
3,561,566,596 of Total Debt per Shares Owned By Institutions. As of the 30th of November 2024,
Total Debt To Capitalization is likely to drop to 0.55. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brookfield by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brookfield's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Brookfield Total Debt vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Brookfield | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 65.62 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Brookfield | Total Debt | = | Bonds | + | Notes |
| = | 233.71 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Brookfield Total Debt vs Competition
Brookfield is the top company in total debt category among its peers.
Total debt of
Financials industry is currently estimated at about 326.64 Billion. Brookfield totals roughly 233.71 Billion in total debt claiming about 72% of equities under Financials industry.
Brookfield Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Brookfield, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brookfield will eventually generate negative long term returns. The profitability progress is the general direction of Brookfield's change in net profit over the period of time. It can combine
multiple indicators of Brookfield, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Brookfield Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Brookfield. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brookfield position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brookfield's important profitability drivers and their relationship over time.
Use Brookfield in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brookfield position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brookfield will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Brookfield could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brookfield when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brookfield - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brookfield to buy it.
The correlation of Brookfield is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brookfield moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brookfield moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brookfield can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Brookfield position
In addition to having Brookfield in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 146 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Asset Allocation ETFs Theme or any other
thematic opportunities.
Other Information on Investing in Brookfield Stock
To fully project Brookfield's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Brookfield at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brookfield's income statement, its balance sheet, and the statement of cash flows.
Potential Brookfield investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brookfield investors may work on each financial statement separately, they are all related. The changes in Brookfield's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brookfield's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
