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Brookfield Oaktree Holdings, LLC holds Credit, Real Estate and Equity investments managed by leading alternative asset management firms Oaktree Capital Management, L.P. and Brookfield Asset Management Ltd. The Company both directly invests in funds and other managed investment vehicles and has indirect exposure through its approximately 74% economic interest in Oaktree Capital I, L.P. ( Oaktree…
Margins and capital returns are both well above average: 73.93% operating margin, ROIC at 17.08%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 12.6% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 19.41% to 17.08%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$648M
▼ -12.6% YoY
Net Income (TTM)
$293M
▼ -19.0% YoY
Op. Margin
75.75%
▲ +0.6pp YoY
ROIC
17.36%
▼ -2.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$20M
▲ +187.4% YoY
Op. Cash Flow (TTM)
-$20M
▲ +187.4% YoY
Net Debt
-$308M
Net Cash Position
Cash & Equiv.
$308M
5Y CAGR: +9.6%
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