Brookfield Finance Inc. 4.625% (BNH)
Valuation Overview•Is Brookfield Finance Inc. 4.625% Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 39/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
BNH struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 28.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $18.4B | -11.5% | — | — | +14.4% | |
| EBITDA | $7.0B | — | +13.8% | — | — | |
| Net Income | $100.6M | +103.9% | -14.0% | — | -5.7% | |
| EPS (Diluted) | $0.04 | +141.9% | -14.3% | — | -6.8% | |
| Free Cash Flow | -$5.6B | +100.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.3% | 25.0% | 21.2% | 22.0% |
| Operating Margin | 28.3% | 21.5% | 19.0% | 17.3% |
| Net Margin | 1.7% | 1.2% | 2.2% | 3.2% |
| FCF Margin | -9.5% | -2.8% | -0.7% | 3.0% |
Total return is +4.0% (1Y), lagging the benchmark by -16.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -2.5% | -9.8% | — |
| 1Y | +4.0% | -16.9% | +7.3% |
| 3YCAGR | +5.3% | -13.2% | +21.7% |
| 5YCAGR | -4.0% | -15.4% | +22.4% |
| 10YCAGR | -1.5% | -15.1% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Brookfield Finance Inc. 4.625% (BNH) valuation, health, and returns.
Brookfield Finance Inc. 4.625% is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +45.7% upside to DCF intrinsic value of $22.61)
Brookfield Finance Inc. 4.625% has multiple valuation anchors: DCF Intrinsic Value: $22.61 | Peer Relative Fair Value: $21.30. A convergence of these signals offers higher conviction.
Brookfield Finance Inc. 4.625% displays weak financial health with a composite quality score of 39/100, supported by a Altman Z-Score of -0.1 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 3.7%.
Brookfield Finance Inc. 4.625% does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Brookfield Finance Inc. 4.625%'s current growth trajectory is Accelerating. The company achieved -11.5% 1Y revenue growth and +141.9% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Brookfield Finance Inc. 4.625% include: -57.5% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.57x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.