Brookfield Corporation (BN.TO) stock analysis

In our weekly check, Brookfield Corporation is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 2, red flags: 13.

About Brookfield Corporation

Brookfield Corporation is a Financial Services company (Asset Management) based in Canada, listed on TSX as BN.TO.

What our checks show for BN.TO

Red flags

• Net debt is 7.5x a year of EBITDA (debt/equity 5.69). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.1 times: a weak year could make the payments hard.
• The net margin fell by 3.4 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• Analysts expect revenue to shrink about 57% a year.
• Revenue fell 5.1% a year over the last 3 years.
• The net margin is only 1.8%: little room if costs rise.
• Free cash flow is negative (-11.7% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 69% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.1 years.
• Beta 1.84: the stock usually moves more than the market, both up and down.
• The share count grew by 44.2% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 4.8%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 23.1% a year over the last 3 years.
• Net profit fell 11.4% a year over the last 3 years.

Strengths

• The gross margin is 22.8% and has risen by 7.3 points: pricing power is holding.
• Operating cash flow is 6.53x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 109% a year over the next years.
• Analysts expect the net margin to improve by 84.5 points from today's 1.8%.
• A large company: market value $84.77 billion.
• Actively traded: about 3.2 million shares a day.

Next earnings report: 2026-11-10

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Questions

What grade does Brookfield Corporation (BN.TO) have?

In our weekly check, Brookfield Corporation is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 2, red flags: 13. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BN.TO stock?

This week's biggest flags for Brookfield Corporation: High debt, Weak interest cover, Margins falling. In total 15 of 25 checks show a warning or a red flag.

What does Brookfield Corporation do?

Brookfield Corporation is a Financial Services company (Asset Management) based in Canada, listed on TSX as BN.TO.

When does Brookfield Corporation report earnings next?

The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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