Investment Thesis
Brookfield Asset Management exhibits strong operational profitability with 52% operating margins and robust 22.1% YoY revenue growth, supported by a solid balance sheet with 0.34x leverage. However, net income declined 3.5% YoY despite revenue expansion, indicating margin compression and operational headwinds that warrant caution.
Strengths
- Exceptional operating margin of 52% demonstrates strong operational efficiency
- Robust revenue growth of 22.1% YoY reaching $1.3B demonstrates market demand
- Healthy balance sheet with 0.34x debt-to-equity ratio and manageable leverage
- Strong free cash flow generation of $338M with 25.3% FCF margin
- Net profit margin of 43.8% reflects strong overall profitability
Risks
- Net income declined 3.5% YoY despite 22.1% revenue growth signals margin compression
- ROE of 6.8% is concerning for asset management company and indicates poor capital efficiency
- 9.2 percentage point gap between operating margin (52%) and net margin (43.8%) suggests significant non-operating expenses
- Cash position of $1.0B relative to $17.9B in assets provides limited strategic flexibility
Key Metrics to Watch
- Quarterly net income trends and margin trajectory
- Return on equity improvement and capital deployment efficiency
- Operating cash flow sustainability and capital expenditure levels
- Non-operating expense drivers and tax rate normalization
Financial Metrics
Revenue
1.3B
Net Income
586.0M
EPS (Diluted)
$0.00
Free Cash Flow
338.0M
Total Assets
17.9B
Cash
1.0B
Profitability Ratios
Gross Margin
N/A
Operating Margin
52.0%
Net Margin
43.8%
ROE
6.8%
ROA
3.3%
FCF Margin
25.3%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.34x
Debt/Assets
37.4%
Interest Coverage
N/A
Long-term Debt
3.0B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-10T07:17:11.445904 |
Data as of: 2026-03-31 |
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