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Brookfield Corporation

BN
49
Asset Management · Financial Services
Price
$43.63
-0.67 (-1.51%)
Market Cap
$97.45B
Exchange
New York Stock Exchange
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Brookfield Corporation is a large investment and asset management company based in Canada. It owns and manages real assets like office buildings, shopping malls, renewable energy plants, infrastructure (such as toll roads and pipelines), and private equity businesses. Its customers are mostly large institutional investors — like pension funds and sovereign wealth funds — that pay Brookfield to invest their money.

Brookfield makes money in two main ways: it earns management fees from running investment funds on behalf of clients, and it also invests its own money directly into assets, collecting profits when those assets grow in value or generate income. The company operates globally, with major investments across North America, Europe, Asia, and South America, managing over $900 billion in assets. Its main competitive advantage is its long track record and scale in hard-to-access real asset markets. The key risk is that rising interest rates can reduce the value of its real estate and infrastructure holdings and make fundraising harder.

Winston Score History

Share count broadly stable

0.6% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.38B (2021) → 2.37B (2025)

Score breakdown

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Quality

Gross Margin
24.1%
Thin — 24.1% gross margin
Operating Margin
23.9%
Excellent — 23.9% operating margin
ROCE
1.4%
Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-5.5%
Shrinking sales (-5.5% YoY)
EPS YoY
+167.7%
Earnings growing fast (167.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
394%
Turns 394% of profit into real cash
FCF Margin
-9.5%
Burning cash (-9.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
5.72
Heavy debt load (5.72)
Interest Cover
1.26x
Dangerous — barely covers interest (1.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
82.5x
Expensive — P/E 82.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+66.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (82.5 → 15.8)

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Dividends

Dividend Yield
0.61%
Small dividend — 0.61% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-14.7%
Dividend cut (-14.7% YoY) — warning sign

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