Core Viewpoint - Grupo Financiero Banorte SAB de CV (GBOOY) is currently viewed as a better value opportunity compared to Brookfield Asset Management (BAM) based on various valuation metrics and earnings outlook [1]. Valuation Metrics - GBOOY has a forward P/E ratio of 8.12, significantly lower than BAM's forward P/E of 35.75, indicating that GBOOY is undervalued relative to BAM [5]. - The PEG ratio for GBOOY is 0.95, while BAM's PEG ratio stands at 2.19, suggesting that GBOOY offers better value when considering expected earnings growth [5]. - GBOOY's P/B ratio is 1.82, compared to BAM's P/B of 10.76, further highlighting GBOOY's relative undervaluation [6]. Earnings Outlook - GBOOY is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7].

Summary of Key Points from the Conference Call Industry Overview - **Healthcare Sector**: Anticipation of an Executive Order on drug pricing expected next week, with a probability of over 70% for the implementation of Most Favored Nation (MFN) pricing to reduce the disparity between US and international drug prices [3][9] - **Transportation and Logistics**: Expected reduction in shipments due to tariffs, but supply chain disruptions may provide some offset. Favorable outlook for specific companies like XPO, NSC, and CP, while UPS and SAIA appear oversold [4] Company-Specific Insights - **Alphabet Inc. (GOOGL)**: Notable shift in search dynamics with the first-ever decline in Safari searches, raising concerns about AI search potentially replacing traditional search methods. However, long-term monetization of AI is expected to ramp up [2][27] - **Microsoft Corporation (MSFT)**: Azure reported a 35% year-over-year revenue growth, with a 34% increase in backlog, outperforming Amazon's AWS and Google's GCP. Combined cloud backlog growth of 33% indicates strong core demand despite AI capacity constraints [5][27] - **Tesla, Inc. (TSLA)**: Focus on Robotaxi and affordable model launches, but concerns over tariffs and execution risks contribute to share price volatility [6][27] - **Walmart Inc. (WMT)**: Anticipated Q1 sales are expected to be in line or slightly better, but caution is advised due to product mix and potential impacts on EBIT growth [5][27] - **Capital One Financial Corporation (COF)**: Continued performance exceeding expectations, with FY27 EPS estimates raised to approximately $25. Merger synergies of $2.7 billion expected to phase in from Q2 [7][27] - **MP Materials**: Potential factory closures in the US due to the absence of rare earth magnet flows from China, impacting industries such as aerospace and electric vehicles [7][27] - **GeneDx**: Management confidence in over 30% volume growth for NICU genetic diagnostics this year, with a compelling valuation at 4x projected 2026 revenues [8][27] Market Dynamics - **Quant Strategy**: Increasing EPS risk indicated by Q1 earnings beats and misses, with the Mag 7 model yielding a cumulative long-short return of 10.5% since its launch [2] - **Russell Rebalance**: Notable buy/sell pressure on specific stocks leading into the June 27 rebalance, with BAM, FLUT, and HWM among the top gainers, while SSB and HQY are under pressure [4] Additional Considerations - **Tariffs and Supply Chain**: The impact of tariffs on shipments and the potential for redirected flows to mitigate some negative effects [4] - **AI and Search Trends**: The evolving landscape of search engines and the implications of AI on traditional search methods [2] This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state of the healthcare and technology sectors, along with specific company performances and market dynamics.

Financial Performance - Total revenues for Q1 2025 reached $1,081 million, a 22% increase from $884 million in Q1 2024[23] - Net income attributable to common stockholders was $581 million in Q1 2025, up 32% from $441 million in Q1 2024[23] - Comprehensive income attributable to common stockholders was $595 million in Q1 2025, compared to $439 million in Q1 2024, indicating a 35.6% increase[26] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024[30] - The net income for the three months ended March 31, 2025, was $580 million, compared to $440 million for the same period in 2024, resulting in basic and diluted earnings per share of $0.36[142] - Total Segment Revenues for Q1 2025 reached $1,154 million, compared to $999 million in Q1 2024, indicating a year-over-year increase of 15.5%[193] - Segment Earnings for Q1 2025 amounted to $576 million, compared to $474 million in Q1 2024, showing an increase of 21.5%[200] Assets and Liabilities - Total assets as of March 31, 2025, were $14,966 million, up from $14,157 million at the end of 2024, representing a 5.7% increase[22] - Total liabilities increased to $4,073 million as of March 31, 2025, compared to $2,966 million at the end of 2024, marking a 37.4% rise[22] - Cash and cash equivalents decreased to $332 million as of March 31, 2025, down from $404 million at the end of 2024, a decline of 17.8%[22] - The company’s retained deficit increased to $617 million as of March 31, 2025, compared to $488 million at the end of 2024[22] - Non-controlling interest in consolidated entities rose to $467 million as of March 31, 2025, up from $336 million at the end of 2024[22] Revenue Streams - Base management and advisory fees increased to $837 million, compared to $680 million in the same period last year, reflecting a 23% growth[23] - The company reported a carried interest allocation compensation of $146 million in Q1 2025, up from $84 million in Q1 2024[23] - Distributions to common stockholders increased to $707 million in Q1 2025 from $620 million in Q1 2024[30] - Total cash flow from operating activities was $265 million in Q1 2025, compared to $516 million in Q1 2024[30] - Other revenues include performance fees and are recognized on a gross basis as the instruments vest[66] Investments and Acquisitions - The company completed a corporate arrangement with Brookfield Corporation, acquiring a 73% interest in Brookfield Asset Management ULC[35] - The total purchase consideration for the 2025 Arrangement was $33 million, with BAM issuing approximately 1,194 million Class A Shares valued at $57.13 each[106] - BAM recognized a gain of $15 million from the disposal of its interest in Redwood Evergreen Fund LP during Q1 2025[116] - The fair value of intangible assets identified in the 2025 Arrangement was assessed at $215 million, including $57 million of deferred tax amounts[111] - The Company agreed to acquire a 50.1% stake in Angel Oak Companies for $145 million[205] Debt and Financing - The Company established a $750 million five-year revolving credit facility on August 29, 2024, to enhance liquidity[135] - As of March 31, 2025, BAM's total corporate borrowings amounted to $235 million, with revolving credit facilities having a capacity of $750 million and an average interest rate of 5.4%[137] - The Company completed its inaugural debt offering, raising approximately $750 million of 10-year bonds at a fixed rate of 5.795%[206] Market Conditions - U.S. GDP contracted by 0.3% for Q1 2025, down from a 2.4% expansion in Q4 2024, with an estimated slowdown to 1.8% growth for 2025[217] - U.S. inflation rate decreased to 2.4% as of March 31, 2025, compared to 2.9% at the end of 2024[217] - The U.S. unemployment rate remained stable between 4.0% and 4.2% during the first three months of 2025[217] - The U.S. Federal Reserve maintained a benchmark interest rate target range of 4.25% to 4.50% as of Q1 2025[218] - The S&P 500 index decreased by 4.6% during Q1 2025, while the MSCI Europe Index increased by 5.2%[220]

分组1 - Brookfield Asset Management reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.41 per share, but showing an increase from $0.34 per share a year ago, resulting in an earnings surprise of -2.44% [1] - The company posted revenues of $1.3 billion for the quarter ended March 2025, which was 0.40% below the Zacks Consensus Estimate, compared to $1.11 billion in revenues a year ago [2] - Over the last four quarters, Brookfield has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Brookfield shares have declined approximately 0.5% since the beginning of the year, outperforming the S&P 500's decline of -3.9% [3] - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $1.29 billion, and for the current fiscal year, it is $1.67 on revenues of $5.25 billion [7] 分组3 - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Brookfield is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Performance - Fee-related earnings increased by 26% year-over-year to $698 million, or $0.43 per share, driven by over $140 billion of capital raised in the past twelve months [3][8] - Distributable earnings rose by 20% to $654 million, or $0.40 per share, compared to the prior year period, primarily due to growth in fee-related earnings [4][8] - Total revenues for the quarter reached $1.081 billion, up from $884 million in the prior year, with management and incentive fee revenues increasing to $954 million [18] - Net income attributable to BAM for the quarter was $581 million, a 32% increase from the prior year period, primarily due to growth in fee-related earnings [4][21] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024 [22] - Fee-Related Earnings (FRE) reached $698 million, up 26% from $552 million in the same quarter last year [22] - Distributable Earnings (DE) amounted to $654 million, compared to $547 million in Q1 2024, reflecting a 19% growth [22] Capital and Fund Management - Fee-bearing capital grew to $549 billion, reflecting a $90 billion increase or 20% over the last twelve months [6][7] - The company raised $25 billion in the first quarter of 2025 across various strategies, including $7.1 billion in real estate and $14 billion in credit [9] - The flagship real estate strategy reached $16 billion, making it the largest real estate strategy ever raised by the company [2][9] - The company has $119 billion of uncalled fund commitments, which will generate approximately $520 million in fees annually once deployed [12] - A majority stake acquisition in Angel Oak, a mortgage and consumer products platform with over $18 billion in assets, is expected to enhance the company's credit capabilities [13] Liquidity and Financial Position - The company completed a bond offering of $750 million, improving its liquidity position and receiving an "A" credit rating from Fitch [12] - Interest expense paid to related parties rose to $13 million, up from $4 million in the previous year [22] Tax and Allocations - The provision for taxes increased to $75 million from $71 million year-over-year [22] - Carried interest allocations decreased significantly from $123 million in Q1 2024 to a negative $2 million in Q1 2025 [22] Investment Management - The company manages over $1 trillion in assets across various sectors, including renewable power and infrastructure [28] - Share of income from equity method investments improved to a loss of $58 million from a loss of $80 million year-over-year [22] Strategic Focus - The company emphasizes the importance of Fee-Related Earnings and Distributable Earnings as key performance measures [32][33] - Future outlook includes a focus on maintaining strong returns and managing risks associated with economic conditions and investment strategies [37][39]

Core Insights - Brookfield Asset Management reported a 26% year-over-year increase in fee-related earnings, reaching nearly $700 million for the quarter ended March 31, 2025, driven by significant capital inflows [1][3][8] - The company raised $25 billion in capital during the first quarter and over $140 billion in the past year, highlighting strong fundraising efforts across various strategies [1][9] - The flagship real estate strategy saw inflows of $6 billion, bringing its total size to approximately $16 billion, making it the largest real estate strategy ever raised by the company [1][2][9] Financial Performance - Fee-related earnings (FRE) for the quarter were $698 million, or $0.43 per share, compared to $552 million, or $0.34 per share, in the prior year [3][8] - Distributable earnings (DE) increased by 20% to $654 million, or $0.40 per share, from $547 million, or $0.34 per share, year-over-year [3][8] - Net income attributable to Brookfield Asset Management was $581 million for the quarter, up 32% from the previous year [3][8] Fundraising and Capital Deployment - The company raised $25 billion in the first quarter of 2025, with notable contributions from various sectors including real estate, private equity, and credit [9] - Significant capital deployments included $16 billion in the first quarter, with $3.5 billion in renewable power and transition, and $1.1 billion in private equity [9][10] - The company has nearly $120 billion of capital available for deployment, positioning it well for future investments [2][9] Strategic Initiatives - Brookfield Asset Management is expanding its partnerships and enhancing its credit capabilities to better serve clients [12] - The company announced an agreement to acquire a majority stake in Angel Oak, enhancing its capabilities in the U.S. mortgage credit market [13] - The firm increased its ownership interest in Oaktree by 1.5%, bringing its total stake to 74% [13]

Group 1 - Brookfield Asset Management Ltd. announced the election of all 12 nominees to the board of directors at the annual meeting held on May 5, 2025 [1] - The voting results showed high approval rates for the nominees, with Angela F. Braly receiving 99.98% of votes in favor [2] - The company manages over $1 trillion in assets across various sectors including renewable power, infrastructure, private equity, real estate, and credit [4] Group 2 - The detailed voting results indicate that Barry Blattman received 98.06% approval, while other nominees also received similarly high percentages, reflecting strong shareholder support [2][5] - The meeting allowed for virtual attendance, indicating a modern approach to shareholder engagement [1] - Brookfield's investment strategy focuses on long-term value generation through real assets and essential service businesses [4]

Core Insights - Brookfield Asset Management is positioned to double its assets under management (AUM) to $2 trillion over the next five years, driven by the growth in alternative investments [3][10] - The global alternative investment market has expanded significantly, from approximately $2 trillion in 2002 to an estimated $25 trillion today, with projections of reaching $60 trillion by 2032 [2] Group 1: Growth Projections - Brookfield expects its fee-bearing capital to increase from $539 billion to over $1.1 trillion by 2029, enhancing its fee-related earnings [3] - The company anticipates a 17% compound annual growth rate in fee-related earnings per share during the same period [4] Group 2: Capital Sources and Partnerships - Brookfield has established new strategic partnerships, including a majority stake in Angel Oak and a 51% interest in Castlelake, to enhance its capital sources [5][7] - The company is increasingly managing capital for insurance companies, which allows them to earn excess returns on unpaid premiums [7] Group 3: Market Trends and Investor Behavior - Investors are shifting towards alternative investments for their potential for excess returns, diversification, and less volatility compared to public markets [6] - High-net-worth individuals are seeking greater access to alternative investments to improve returns and reduce volatility [7] Group 4: New Initiatives - Brookfield has launched investment products targeting the private wealth market, raising nearly $700 million for its private wealth infrastructure fund and deploying over $900 million from its credit private wealth fund [8][9] - These initiatives are expected to drive additional AUM and earnings growth, further diversifying Brookfield's business [9]

Core Viewpoint - Brookfield Asset Management's recent stock dip presents a potential buying opportunity, with a higher dividend yield and lower valuation, while the company is on track for significant earnings and dividend growth in the coming years [1][9]. Financial Performance - Brookfield generated nearly $2.5 billion in fee-related earnings last year, marking a more than 10% increase from 2023 [2]. - The company raised $135 billion from investors last year, including a record $29 billion in Q4, leading to an 18% increase in fee-bearing capital in Q4 and a 17% rise in fee-related earnings during that period [2]. Growth Prospects - The company ended last year with $539 billion of fee-bearing capital and aims to increase its fee-bearing assets under management (AUM) to around $1.1 trillion by 2029 [5]. - Brookfield expects its fee-related earnings to rise at a 17% compound annual rate through the end of the decade, potentially doubling to $5 billion [6]. - Distributable earnings (DE) are projected to grow at an 18% compound annual rate, increasing from almost $2.4 billion last year to $5.1 billion in 2029 [6]. Dividend Policy - Brookfield has increased its dividend by 15%, resulting in a dividend yield of nearly 3.5% at the current share price, which is more than double the S&P 500's yield [4]. - The company plans to pay 95% of its distributable earnings to investors in dividends, positioning it for a 15% annual dividend growth rate over the next several years [6][7]. Valuation and Investment Opportunity - The stock trades at about 35 times its 2024 DE but is expected to grow into its valuation, trading at about 18 times its 2029 DE [8]. - The recent stock price dip below $55 enhances the investment appeal, offering a strong total return potential as the company grows its earnings and dividends at an expected annual rate of 15%+ [9].

Core Viewpoint - Brookfield Asset Management is positioned as a promising dividend growth stock with significant potential for long-term returns, having generated total returns of 64% since its inception in late 2022 as a spin-off from Brookfield Corporation [1][2]. Company Overview - Brookfield Asset Management operates within the Brookfield empire, akin to Canada's version of Berkshire Hathaway, but it manages subsidiaries as public companies rather than owning them outright [3]. - The company manages over $1 trillion in alternative assets globally, focusing on physical assets such as renewable energy projects, real estate, and infrastructure [3][9]. Business Model - Brookfield Asset Management creates and sells private investment funds to raise capital, which it then invests in alternative assets, functioning similarly to a hedge fund but with a focus on non-traditional assets [4]. - The business model is asset-light and highly profitable, with the company generating $4 billion in revenue and $2.36 billion in distributable earnings, translating to a 59% conversion rate of revenue into cash [6]. Dividend Strategy - The company aims to distribute 95% of its distributable earnings to shareholders, a high payout ratio made feasible by its minimal investment requirements [7]. - Brookfield Asset Management plans to grow its distributable earnings at an annualized rate of 18% and its dividend by 15% through 2029, potentially doubling the dividend by that time [12]. Market Potential - The alternative assets market is currently valued at $25 trillion and is projected to grow to $60 trillion by 2032, indicating substantial growth opportunities for Brookfield Asset Management as it continues to attract new capital [11]. - The stock has an $80 billion market cap, suggesting that while it may not yield massive returns from small investments, it still holds significant long-term upside potential [10].