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BAM

NEUTRAL
$51.26 Live
Brookfield Asset Management Ltd. · NYSE
Target $61.98 (+20.9%)
$41.78 52W Range $64.1

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AI Analysis

AI-powered fundamental assessment

Confidence
65%
The Advanced Deterministic Scorecard reveals a weak Piotroski F-Score of 3/9, indicating poor financial health, which raises concerns despite strong profitability and growth metrics. The absence of an Altman Z-Score prevents a full distress risk assessment, but the low Piotroski score suggests operational or balance sheet weaknesses. While the company exhibits robust ROE (22.57%), high margins, and strong earnings growth (34.3% YoY), these are offset by an elevated valuation (P/E 33.29, P/B 9.77) and a concerning 109.19% payout ratio that threatens dividend sustainability. Price performance has weakened recently, with a 1Y return of -9.3%, and insider sentiment is neutral, offering no catalysts.

Key Strengths

Exceptional profitability with ROE of 22.57% and operating margin of 60.94%
Strong year-over-year earnings growth of 34.30% and revenue growth of 12.10%
Low debt/equity ratio of 0.18, indicating conservative capital structure
High dividend yield of 3.39%, above market average
Analyst consensus supports a 'buy' recommendation with a target price of $61.98

Key Risks

Weak Piotroski F-Score of 3/9 signals deteriorating financial health
Dividend payout ratio of 109.19% exceeds earnings, raising sustainability concerns
Elevated valuation metrics: P/E of 33.29 and P/S of 18.44 vs sector averages
Recent price underperformance: -9.3% over 1 year and -17.4% over 6 months
Limited transparency due to missing key data (Altman Z-Score, cash/debt figures, EV/EBITDA)
AI Fair Value Estimate
Based on comprehensive analysis
$45.43
-11.4% below current price

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