Margins varied 82.9% around their average (limit 35%).
- 7y median
- 60.6%
- Worst year
- 1.3%
- Latest · 2025
- 61.3%
# Brookfield Asset Management (BAM.TO) Canonical: https://gigainvestors.com/s/BAM.TO Analysis as of: 2026-10-16T07:33:47.317Z. Financial observations: FY2019–FY2025. Listing currency: CAD. Reporting currency: USD. ## Verdict Not a wonderful business Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no. Share price: CAD 65.24 per share; close as of 2026-10-15. Estimated value: low CAD 21.93 per share, central CAD 24.84 per share, high CAD 28.72 per share. Buy at or below the central value CAD 24.84 per share. Valuation as of 2026-10-16T07:33:47.317Z; scenarios are not confidence intervals. Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points). ## Checklist ### understandable: fail - 2 revenue declines in the last 10 years (informational) - operating margin variation exceeds 0.35 - Financial history: 7 years - Years with declining revenue: 2 - Years with a net loss: 0 - Operating margin variation: 0.83× Chart: Operating margin; fiscal year observations. - FY2019: 0.70× - FY2020: 0.61× - FY2021: 0.74× - FY2022: 0.02× - FY2023: 0.01× - FY2024: 0.03× - FY2025: 0.61× ### moat: fail - ROIC median below threshold - ROIC worst years below threshold (more than 1 bad year allowed) - Recent gross margin fell 71.8pp below the typical margin (limit 4pp) - ROIC, median of available years: 5.3% - ROIC, second-lowest year: 1.6% - Typical minus recent gross margin: 71.8 pp - Typical gross margin (annual median): 74.7% - Recent gross margin (lower of latest and 3-year median): 2.9% - Years with nonpositive capital: 0 - Capital spending / revenue: 0.4% - ROIC including acquisitions, ten-year median: 15.7% Chart: ROIC excluding acquisitions; fiscal year observations. - FY2020: 8.5% - FY2021: 15.0% - FY2022: 0.0% - FY2023: 1.6% - FY2024: 2.2% - FY2025: 26.2% ### economics: pass - Owner earnings / net income, 5-yr: 1.01× - Cash conversion uses consolidated totals: No - Owner earnings, five-year total: $5.4B - Net income, five-year total: $5.4B - Working capital / revenue, annual change: 153.8 pp Chart: Annual owner cash / profit; fiscal year observations. - FY2021: 0.99× - FY2022: 1.00× - FY2023: 1.00× - FY2024: 1.03× - FY2025: 1.02× ### management: fail - potential debt-funded buybacks (informational) - buybacks unrelated to price (informational) - Per-share earnings: 4.64 to 1.29 (three-year endpoint medians) - per-share value declined or ends nonpositive - Management verdict uses per-share economic progress: Yes - Ordinary dilution, 5-year annual growth: 1.3% - Diluted shares, 5-year annual growth: 1.3% - Per-share value growth: -27.4% - Per-share value change: -$3.35 - Per-share value, starting three-year median: $4.64 - Per-share value, ending three-year median: $1.29 - Buybacks concentrated in cheaper years (correlation): -0.20 - Average buyback yield: 8.5% - Buyback history: 4 years - Debt-funded buybacks: Yes - ROIC, last three-year median: 2.2% Chart: Earnings per share; fiscal year observations. - FY2019: $4.75 - FY2020: $0.26 - FY2021: $4.64 - FY2022: $0.05 - FY2023: $1.16 - FY2024: $1.29 - FY2025: $1.55 ### accounting: fail - latest-year receivables to sales index (DSRI) exceeds 1.465 - stock compensation exceeds 15% of operating cash flow - Sloan accruals: 1.3% - Receivables to sales index (DSRI): 4.45× - Restructuring years, last five: 0 - Stock compensation / operating cash flow: 15.2% - Earnings backed by cash: Yes - Operating cash / earnings: 0.91× - Accounting red flags: 2 - Goodwill and intangibles / equity: 0.06× Chart: Sloan accruals; fiscal year observations. - FY2020: -6.2% - FY2021: 1.7% - FY2022: 12.4% - FY2023: -1.8% - FY2024: -2.0% - FY2025: 1.3% ## Holders - [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts. - [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts. ## Price story Down 25% since Jan 2025 · sales +21% Story as of 2026-10-16T09:59:57.755Z; price observation 2026-10-15. Price needs cash profits to grow 13.3% a year for ten years - 2026-05-08: Brookfield Profit Rises 7% As Fee-Bearing Capital Hits $614 Billion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/brookfield-profit-rises-7-fee-130641664.html)) - 2026-07-03: Brookfield (TSX:BN) Expands Bloom Deal To $25 Billion And Launches $100 Billion AI Fund ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/brookfield-tsx-bn-expands-bloom-150948323.html)) ### Sales · FY2024–2025 sales +21%; source https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm; observed 2026-03-02. - FY2019: $2.2B - FY2020: $2.3B - FY2021: $2.8B - FY2022: $48M - FY2023: $4.1B - FY2024: $4.0B - FY2025: $4.8B ### Gross margin · FY2025 gross margin 67.2%; source https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm; observed 2026-03-02. - FY2019: 74.7% - FY2020: 76.9% - FY2021: 74.8% - FY2022: 76.8% - FY2023: 1.4% - FY2024: 2.9% - FY2025: 67.2% ## Owner memo Memo as of 2026-10-16T08:06:05.509Z. ### How it makes money Operates in asset management; annual sales are USD 4.8 billion. - Source: https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm#000162828026013098 (filed 2026-03-02); FY2025: revenue 4817000000; grossProfit 3235000000; margin = grossProfit / revenue. ### Why customers stay Margins ranged from 1.4% to 67.2% during 2023–25; it earns 5.3% on its capital. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: grossProfit / revenue = 1.4%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: grossProfit / revenue = 2.9%. - Source: https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm (filed 2026-03-02); FY2025: grossProfit / revenue = 67.2%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); 7-year return on capital observations [[2020,0.08480171085117774],[2021,0.15020310303754517],[2022,0.0003051643192488263],[2023,0.016312741312741314],[2024,0.021714018108023727],[2025,0.2621792494037124]]; median 0.053257864479600736. ROIC follows the displayed moat series; financial companies use return on tangible equity. ### Where the cash goes Paid dividends in 7 of 7 years; bought back USD 419.2 million of shares. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2019: growth capex 0; upkeep 1000000; owner earnings 1918000000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2020: growth capex 727676.5881830305; upkeep 19272323.41181697; owner earnings 385727676.58818305. Growth capex / owner earnings = 0.0018865034384346877. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2021: growth capex 7127555.296641633; upkeep 27872444.703358367; owner earnings 1852127555.2966416. Growth capex / owner earnings = 0.0038483069247895645. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2022: growth capex 0; upkeep 13000000; owner earnings 19000000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: growth capex 3000000; upkeep 14000000; owner earnings 451000000. Growth capex / owner earnings = 0.0066518847006651885. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: growth capex 0; upkeep 0; owner earnings 555000000. Growth capex / owner earnings = 0. - Source: https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm (filed 2026-03-02); FY2025: growth capex 0; upkeep 0; owner earnings 2568501000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Dividend observations: [[2019,480000000],[2020,1264000000],[2021,1395000000],[2022,3184000000],[2023,505000000],[2024,630000000],[2025,2818000000]]. Zero only counted when supported by a complete cash-flow statement. - Source: https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm (filed 2026-03-02); FY2025: cash repurchases 419212279 USD. ### Are managers owners Insiders own 3.6% of the company. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BAM.TO SharesStats.PercentInsiders = 3.5680000000000005 percentage points; cache date 2026-10-16. ### What could break it "Inability to collect amounts owing to us could adversely impact financial performance." (SEC filing, Mar 2026) - Source: https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm (filed 2026-03-02); Inability to collect amounts owing to us could adversely impact financial performance. ### What the price says The price assumes cash profits grow 13.3% yearly over ten years. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Ten-year compound average after fade. Initial solved rate 0.17963141036798402. Price 65.24; FX 1.4190435646374344; discount 0.1; same standard ten-year fade to terminal 0.03. Closing-price date 2026-10-15. ## Monthly share-price history (CAD per share) - 2022-12: CAD 38.77 per share - 2023-01: CAD 43.44 per share - 2023-02: CAD 45.91 per share - 2023-03: CAD 44.27 per share - 2023-04: CAD 45.42 per share - 2023-05: CAD 41.50 per share - 2023-06: CAD 43.24 per share - 2023-07: CAD 44.48 per share - 2023-08: CAD 46.69 per share - 2023-09: CAD 45.26 per share - 2023-10: CAD 39.75 per share - 2023-11: CAD 47.51 per share - 2023-12: CAD 53.22 per share - 2024-01: CAD 54.06 per share - 2024-02: CAD 55.31 per share - 2024-03: CAD 56.90 per share - 2024-04: CAD 52.59 per share - 2024-05: CAD 53.50 per share - 2024-06: CAD 52.08 per share - 2024-07: CAD 60.26 per share - 2024-08: CAD 54.94 per share - 2024-09: CAD 63.94 per share - 2024-10: CAD 73.87 per share - 2024-11: CAD 80.31 per share - 2024-12: CAD 77.96 per share - 2025-01: CAD 86.98 per share - 2025-02: CAD 81.75 per share - 2025-03: CAD 69.66 per share - 2025-04: CAD 73.56 per share - 2025-05: CAD 77.21 per share - 2025-06: CAD 75.37 per share - 2025-07: CAD 85.44 per share - 2025-08: CAD 82.65 per share - 2025-09: CAD 79.20 per share - 2025-10: CAD 75.87 per share - 2025-11: CAD 73.59 per share - 2025-12: CAD 71.90 per share - 2026-01: CAD 67.65 per share - 2026-02: CAD 63.69 per share - 2026-03: CAD 61.85 per share - 2026-04: CAD 65.26 per share - 2026-05: CAD 66.68 per share - 2026-06: CAD 63.62 per share - 2026-07: CAD 67.81 per share - 2026-08: CAD 71.36 per share - 2026-09: CAD 63.51 per share - 2026-10: CAD 64.40 per share ## Annual estimated value (CAD per share) - FY2023: low CAD 63.93 per share, central CAD 72.74 per share, high CAD 84.47 per share - FY2024: low CAD 25.17 per share, central CAD 28.64 per share, high CAD 33.26 per share - FY2025: low CAD 19.04 per share, central CAD 21.53 per share, high CAD 24.83 per share Historical values use today's bond yield for every fiscal year Historical values use today's FX rate into trading currency for every fiscal year Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates Prior published observations retained from 2026-10-15T06:39:32.851Z where newer inputs omit a numeric field or fiscal period. ## Sources [Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1937926/000162828026013098/bam-20251231.htm); period 2025-12-31, filed 2026-03-02. Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.
BAM · TO
S&P/TSX 60
Not a wonderful business
3 quality tests fail. A lower price would not fix the business.
Margins varied 82.9% around their average (limit 35%).
Capital return excluding acquisitions: median 5.3% (minimum 15%), and the second-worst year 1.6% (minimum 10%), and gross margin fell 71.8 percentage points (limit 4).
Each $1 of profit left $1.01 for owners over five years (minimum $0.80).
Per-share value fell from 4.64 to 1.29, comparing three-year medians at each end (must rise and stay positive).
Receivables grew 4.455 times as fast as sales (limit 1.465), and stock pay took 15.2% of cash flow (limit 15%).
Profit record · pass 0 loss years in 7 (at most 2), mean operating margin 38.9%, three-year average owner earnings per share 1.35 USD.
| Value range | CAD 21.93 – CAD 28.72 |
|---|---|
| Buy at or below | Central value CAD 24.84 |
| Discount to value | 1 − 65.24 / 24.84 = -162.6% |
| Return / year | About 5.6% a year at today's price (required return 10.0%) |
| Cash-flow inputs | Owner cash CAD 1.93/share; 0.0% growth for 5 years, then fades to 3.0%; excess cash CAD 0.78/share today. |
| Required return | 10.0% / year, earned by construction at the central value |