Value
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 1.4 |
| P/S | 9.6 |
| EV/EBITDA | 3.3 |
| Fwd P/E | 9.7 |
| PEG | 10.0 |
| Analyst target | 7.5 |
- ▸Forward P/E: 7.1x
- ▸PEG: 0.05
- ▸Attractively valued
BN · Why this verdict
Why Brookfield (BN) 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 score5.5/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
Brookfield Corporation is cheaply valued at a 6.7x forward P/E with 19.0% upside to the $46.76 analyst target, but weak earnings quality (negative free cash flow versus net income) and a confirmed downtrend keep conviction low.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
There is no identified competitive moat and the dividend is flagged as a yield trap with dividend safety of 3.7/10. Catalyst breakdown | Dividend safety improves above 5.0 as cash flow covers the payout. | →Stable |
| CounterA weakly covered dividend could be cut, removing support for the share price. | ||
The stock trades at a 6.7x forward P/E and a PEG of 0.05, which is attractively valued versus earnings growth. Valuation breakdown | Earnings growth continues so the forward P/E stays below 10x as price moves toward the analyst target. | →Stable |
| CounterAsset managers with complex consolidated earnings can look cheap on forward estimates that never convert to cash. | ||
Earnings quality is a red flag, with free cash flow at -139% of net income and an overall quality score of 3.6, below the 4.0 floor. Quality breakdown | Free cash flow turns positive relative to net income and the quality score recovers above 4.0 over ~12 months. | →Stable |
| CounterAsset managers consolidate operating businesses where cash flow is lumpy, but persistent negative cash conversion undermines reported earnings. | ||
The $39.28 price sits 19.0% below the $46.76 analyst target, with 37% analyst upside and a reward-to-risk of 2.04. Upside pct | Price closes toward the $46.76 target as earnings are delivered. | →Stable |
| CounterAnalyst coverage is light, which dampens the signal, and the target may be cut if quality does not improve. | ||
The price is below its 200-day average with a 30-day slope of -3.1% (a confirmed downtrend), yet momentum scores 7.0 on rising volume and an improving MACD. Momentum breakdown | Price reclaims the 200-day average and momentum stays above 5.5. | ↑Improving |
| CounterDeath cross patterns often fail; momentum could roll over again as the 200-day slope is still negative. | ||
There is no identified competitive moat and the dividend is flagged as a yield trap with dividend safety of 3.7/10.
→StableCatalyst breakdown
- Expectation
- Dividend safety improves above 5.0 as cash flow covers the payout.
CounterA weakly covered dividend could be cut, removing support for the share price.
The stock trades at a 6.7x forward P/E and a PEG of 0.05, which is attractively valued versus earnings growth.
→StableValuation breakdown
- Expectation
- Earnings growth continues so the forward P/E stays below 10x as price moves toward the analyst target.
CounterAsset managers with complex consolidated earnings can look cheap on forward estimates that never convert to cash.
Earnings quality is a red flag, with free cash flow at -139% of net income and an overall quality score of 3.6, below the 4.0 floor.
→StableQuality breakdown
- Expectation
- Free cash flow turns positive relative to net income and the quality score recovers above 4.0 over ~12 months.
CounterAsset managers consolidate operating businesses where cash flow is lumpy, but persistent negative cash conversion undermines reported earnings.
The $39.28 price sits 19.0% below the $46.76 analyst target, with 37% analyst upside and a reward-to-risk of 2.04.
→StableUpside pct
- Expectation
- Price closes toward the $46.76 target as earnings are delivered.
CounterAnalyst coverage is light, which dampens the signal, and the target may be cut if quality does not improve.
The price is below its 200-day average with a 30-day slope of -3.1% (a confirmed downtrend), yet momentum scores 7.0 on rising volume and an improving MACD.
↑ImprovingMomentum breakdown
- Expectation
- Price reclaims the 200-day average and momentum stays above 5.5.
CounterDeath cross patterns often fail; momentum could roll over again as the 200-day slope is still negative.
Per-dimension breakdown
Quality
3.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 0.8 |
| ROA | 1.8 |
| Gross margin | 2.5 |
| Op margin | 10.0 |
| Net margin | 0.9 |
| Current ratio | 4.0 |
| FCF quality | 0.0 |
| Moat | 4.2 |
| Piotroski F | 7.8 |
- ▸Earnings quality RED FLAG: -139% FCF/NI
- ▸No competitive moat
- ▸Strong Piotroski F-Score: 7/9
Growth
7.3/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 4.6 |
| EPS growth | 10.0 |
Momentum
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 2.4 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 3.6 |
- ▸Overbought bear rally (RSI 79)
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope -3.1%/30d — confirmed downtrend
Sentiment
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 6.5 |
| Analyst rating | 7.0 |
| Price target | 8.7 |
- ▸Light analyst coverage (10.0) — signal dampened
- ▸Analyst upside: 32%
Insider
5.0/10data confidence 50%Peer rank
3.2/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.9 |
| quality rank | 0.8 |
| growth rank | 6.5 |
Technical
2.9/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.1 |
| support resistance | 2.0 |
| 52w position | 6.5 |
Risk (lower is worse)
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| days to cover | 6.6 |
| volatility | 6.3 |
| put call | 7.4 |
| implied vol | 4.4 |
| max pain risk | 3.0 |
| beta | 3.9 |
| debt equity | 3.8 |
- ▸Above max pain $34
Catalyst
3.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 0.0 |
| earnings timing | 5.0 |
| surprise avg | 0.0 |
| dividend safety | 3.7 |
| news activity | 6.0 |
- ▸Earnings concerns: 0B/3M
- ▸Earnings in 9 days
- ▸Yield trap warning: high yield but unsafe
How the verdict was assembled
Engine trigger
Quality below minimum threshold.
Engine technical detail
verdict_path:
L1:HARD_BLOCK:QUALITY_FLOORPassed (5)
- MOMENTUM:6.4>=5.5
- INSIDER:OK
- 8K:CLEAN
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:1.2<1.5@spot
Warning (2)
- DEATH_CROSS:momentum=6.4>=5.0 recovering
- EARNINGS_PROXIMITY:9d<=14d (soft)
Reward-to-Risk
1.22
Upside
+15.1%
Downside
12.4%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 79
EdgeNo clear edge — No clear edge identified
SuitabilityAggressive — Beta 1.83>1.3
Investment implication
The SELL_IF_HOLDING verdict reflects the ASYMMETRY gate's 1.2<1.5@spot outcome against Value at 7.3 and asymmetric R:R of 1.22.
The strongest dimensions are Value at 7.3, Growth at 7.3, and Sentiment at 7.3; the weakest are Technical at 2.9, Peer rank at 3.2, and Catalyst at 3.3. The V9 engine flagged 1 failed gate with 2 warnings, producing an asymmetric reward-to-risk of 1.22 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Cheap Forward Valuation
Trip ifForward P/E exceeds 12x from current 6.7x.
- P2Earnings Quality Red Flag
Trip ifQuality score falls below 3.0 from current 3.6.
- P3Analyst Target Upside
Trip ifAnalyst target falls below $42, less than 7% above the current $39.28 price.
- P4Downtrend With Recovery Signs
Trip ifMomentum score falls below 5.0 from current 7.0.
- P5No Moat Unsafe Dividend
Trip ifDividend safety score stays below 3.0 from current 3.7.