Value
8.4/10data confidence 83%| Component | Sub-score |
|---|---|
| P/S | 10.0 |
| EV/EBITDA | 6.6 |
| Fwd P/E | 9.2 |
| PEG | 10.0 |
| Analyst target | 6.0 |
- ▸Forward P/E: 10.6x
- ▸PEG: 0.01
- ▸Attractively valued
BBUC · Why this verdict
Why Brookfield Business (BBUC) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictSELL
Overall score5.3/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
Brookfield Business Corporation is a cheaply valued conglomerate with a strong earnings beat record, but weak business quality, declining revenue and a confirmed downtrend limit conviction ahead of earnings in 4 days.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The stock trades at a forward P/E of 10.1x with a PEG of 0.01, an attractive valuation relative to peers. Valuation breakdown | Forward P/E stays near or below 12x as earnings are delivered over 12 months. | ↓Deteriorating |
| CounterConglomerate discounts are often permanent, and earnings are volatile enough that low multiples may not close. | ||
EPS beat estimates in 3 of the last 4 quarters with an average surprise of about 90%, including $1.00 against a $0.46 estimate in July 2026. Earnings | EPS meets or beats consensus in at least 3 of the next 4 quarters. | ↑Improving |
| CounterSurprise percentages are inflated by tiny or negative estimates, and the May 2026 quarter missed by 47%. | ||
Business quality is weak at 2.7, with no competitive moat and quality ranking near the bottom of peers. Bear case | Quality score improves above 4.0 as operating margins strengthen over 12 months. | ↓Deteriorating |
| CounterHolding-company structure and asset sales can make reported profitability look weak, hiding value in underlying businesses. | ||
Revenue is declining about 3% and the stock is below its 200-day moving average with a slope of -4.2% over 30 days, a confirmed downtrend. Growth breakdown | Revenue growth turns positive and the price recovers above its 200-day average within 12 months. | →Stable |
| CounterVolume accumulation with rising on-balance volume and an improving MACD suggest a recovery may already be starting. | ||
Analyst target upside is 13.7% against 12.0% downside, a reward-to-risk of only 1.14 at the current price, with earnings due in 4 days. Upside pct | Price moves toward the $32.52 analyst target after the November 5 earnings report. | ↓Deteriorating |
| CounterWith near-even upside and downside and an earnings event imminent, the position offers little margin for error. | ||
The stock trades at a forward P/E of 10.1x with a PEG of 0.01, an attractive valuation relative to peers.
↓DeterioratingValuation breakdown
- Expectation
- Forward P/E stays near or below 12x as earnings are delivered over 12 months.
CounterConglomerate discounts are often permanent, and earnings are volatile enough that low multiples may not close.
EPS beat estimates in 3 of the last 4 quarters with an average surprise of about 90%, including $1.00 against a $0.46 estimate in July 2026.
↑ImprovingEarnings
- Expectation
- EPS meets or beats consensus in at least 3 of the next 4 quarters.
CounterSurprise percentages are inflated by tiny or negative estimates, and the May 2026 quarter missed by 47%.
Business quality is weak at 2.7, with no competitive moat and quality ranking near the bottom of peers.
↓DeterioratingBear case
- Expectation
- Quality score improves above 4.0 as operating margins strengthen over 12 months.
CounterHolding-company structure and asset sales can make reported profitability look weak, hiding value in underlying businesses.
Revenue is declining about 3% and the stock is below its 200-day moving average with a slope of -4.2% over 30 days, a confirmed downtrend.
→StableGrowth breakdown
- Expectation
- Revenue growth turns positive and the price recovers above its 200-day average within 12 months.
CounterVolume accumulation with rising on-balance volume and an improving MACD suggest a recovery may already be starting.
Analyst target upside is 13.7% against 12.0% downside, a reward-to-risk of only 1.14 at the current price, with earnings due in 4 days.
↓DeterioratingUpside pct
- Expectation
- Price moves toward the $32.52 analyst target after the November 5 earnings report.
CounterWith near-even upside and downside and an earnings event imminent, the position offers little margin for error.
Per-dimension breakdown
Quality
2.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 0.7 |
| ROA | 2.2 |
| Gross margin | 0.0 |
| Op margin | 6.1 |
| Net margin | 0.0 |
| Current ratio | 5.3 |
| Moat | 3.1 |
| Piotroski F | 4.4 |
- ▸No competitive moat
- ▸Quality concerns
Growth
5.9/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 1.8 |
| EPS growth | 10.0 |
- ▸Declining revenue: -3%
Momentum
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 2.4 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 0.0 |
- ▸Overbought bear rally (RSI 79)
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope -4.2%/30d — confirmed downtrend
Sentiment
6.7/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.3 |
| Analyst rating | 6.8 |
| Price target | 8.2 |
- ▸Light analyst coverage (8.0) — signal dampened
- ▸Analyst upside: 25%
Insider
5.0/10data confidence 50%Peer rank
3.6/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 8.6 |
| quality rank | 2.3 |
| growth rank | 2.0 |
Technical
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.0 |
| support resistance | 1.1 |
| 52w position | 5.7 |
| gap | 5.0 |
Risk (lower is worse)
3.7/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.7 |
| days to cover | 1.4 |
| volatility | 4.9 |
| implied vol | 0.9 |
| beta | 5.4 |
| debt equity | 2.0 |
- ▸High IV: 74%
Catalyst
6.8/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| dividend safety | 6.8 |
| news activity | 7.0 |
- ▸Strong earnings: 3B/1M
- ▸Earnings in 1 day
How the verdict was assembled
Engine trigger
Quality below minimum threshold.
Engine technical detail
verdict_path:
L1:HARD_BLOCK:QUALITY_FLOORPassed (5)
- MOMENTUM:5.7>=5.5
- INSIDER:OK
- 8K:CLEAN
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- ASYMMETRY:0.6<1.5@spot
- EARNINGS_PROXIMITY:1d<=7d
Warning (1)
- DEATH_CROSS:momentum=5.7>=5.0 recovering
Reward-to-Risk
0.59
Upside
+8.8%
Downside
15.0%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 79
EdgeNo clear edge — No clear edge identified
SuitabilityAggressive — Beta 1.40>1.3
Investment implication
The SELL_IF_HOLDING verdict reflects the ASYMMETRY gate's 0.6<1.5@spot outcome against Value at 8.4 and asymmetric R:R of 0.59.
The strongest dimensions are Value at 8.4, Catalyst at 6.8, and Sentiment at 6.7; the weakest are Quality at 2.7, Technical at 3.0, and Peer rank at 3.6. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 0.59 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Low Valuation Multiples
Trip ifForward P/E rises above 14x from the current 10.1x.
- P2Earnings Beat Record
Trip ifEPS surprise stays below 0% for 2 consecutive quarters.
- P3Weak Business Quality
Trip ifOverall quality score stays below 2.5 from the current 2.7.
- P4Revenue Decline Downtrend
Trip ifRevenue decline exceeds 8% YoY from the current -3%.
- P5Limited Near Term Upside
Trip ifPrice falls below the $26.98 stop level, a drop of more than 5.7% from $28.60.