BROOKFIELD Analysis (BN)📝 1. Introduction
Brookfield is a global asset company active in a variety of industries, including Renewable Power and Transition, Infrastructure, Private Equity, Real Estate, and Credit and Insurance Solutions.
With approximately 180,000 employees in more than 30 countries, the company has an extensive network of investments and operations around the world.
The correlation with the S&P 500 is close to 1:1 most of the time.
Given the company's scope in several sectors, its size and its history, it is important to put it on the table when carrying out a broad market analysis.
🧾 2. Fundamental Analysis
🔴 Analyzing the aspect of operating results, net revenue has been progressively falling since March 2022.
It is now practically at the same level as March 2020.
This reflects on the Earnings per Share, which is not following the Estimated Earnings per Share, indicating a possible excess of optimism on the part of analysts.
🤔 Will revenue drop to the same level as in June 2020?
🔴 Free cash flow is on the same path, at the same level as in March 2020 as well.
🟢 Looking at the P/E ("Price/Earnings"), we can see that the share price has become more expensive in relation to its earnings, giving a balance from the end of last year.
A higher P/E can be a result of a positive expectation for the company's growth.
🟢 The P/CF ("Price/Cash Flow") is signaling a recovery, indicating an increase in the share price in relation to its available cash, which may also corroborate an optimistic expectation for the company's growth.
🟢 Finally, looking at the Balance Sheet aspect, Shareholders' Equity continues on a constant upward trend, which demonstrates financial health.
🟡 Conclusion: Said that, I don't see any problem with this fundamentalist data.
My only point of attention is regarding net revenue, which is at the same levels as the start of the pandemic back in 2020.
Due to the increase in the cost of money, revenue may reach the same level as June 2020 or even worse. The X of the question is how much and when.
📈 3. Graphic Analysis
A buy in the region between $30 and $31 after an upward pivot becomes more attractive, offering a good risk/return ratio:
Another scenario that can develop, which is easier to visualize on the line graph, is a trading range within a triangle.
In this scenario, I think the price would break below the triangle to capture the bulls' stops, and only then begin an upward movement.
Brookfield
US Stock In Play: $BEPC$BEPC (Utilities - Renewable)
HTF setup, now within a pennant range. hv already violated the momentum of its year long downtrend channel, and trading above VWAP from ATH reflecting significant accumulation in its past 2 mths rally
pivot on weekly is at $45. pennant BO at $43.50
Brookfield Renewable Partners looks really interestingBrookfield Renewable Partners looks like it may have found a bottom from its roughly 20% decline from it ATH.
The renewable energy sector could be a growth fad to some extent, however, my feeling is that if the renewable energy sector can scale and reduce the cost related to renewable energy technology, then why wouldn't it gain in market share particularly in developed markets?
based on the available reported numbers i have roughly calculated that from 2009 - 2020 (11 years) the company has grown its operating expenses by 8.7% per annum whilst it has grown its revenue by 8.6% per annum. That's a really attractive rate of growth but without knowing more about the company i wonder to what extent they are growing their operating expenses by reinvesting in the company. I would certainly hope that the growth in operating expenses has come predominantly through reinvesting in operations.
If we look at the operating margin for more clarity in the numbers we can see that from 2009 - 2020 (11 years) the company has grown its operating margin by 33.8% per annum.
Interesting...
Better yet its average free cash flow since 2012 is 22.56% per annum.
So what concerns me? The average debt to EBITDA from 2009 - 2020 (11 years) is 7.6x with its last reported debt to EBITDA at 8.2x. Ouch!!!
That not what I'd call a healthy stat.
Its definitely one of those companies that carries a high degree of risk due to the fact that its highly leveraged. As long as they can continue to grow their revenue and reduce their debt levels to something far more reasonable, this could be a really nice company to own for the next 5 years.
In terms of the current entry point, it looks attractive based on the DeMarker and Stochastic Momentum Index.
I wouldn't take a large position in the company more of a punt at this point.
Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.
BFT Update 12/25/2020Chart update. Still looking to buy in the high 40s, hoping these lower highs continue and I can get in where I’d like.
Brookfield Property Partners a good longterm play$ BPY $BPY.UN has a great portfolio of residential/office/ commercial properties. It s now trading at 30% of NAV. The malls has been affected by Covid 19 but the great location would help BPY to survive this crisis like the ones before.
I think 2 senario for the shares:
1- No Div Cut
2- Div Cut
The second scenario may cause the shares to drop in a short term but it s good entering point.
Brookfield Asset Management (BAM) Could See Bull Run..Over the next few months the price of BAM could rally following the confirmation of a pipe bottom pattern. I'm watching for a breakout above about 42 (top of the red candle wick).
Target: 44.4
Stop: 36.6
Best of luck with your trading. Like the idea if you agree, and let me know what you think in the comments.