BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - Toronto Stock Exchange - BMG162341090 - Currency: CAD
Overall BBU-UN gets a fundamental rating of 4 out of 10. We evaluated BBU-UN against 4 industry peers in the Industrial Conglomerates industry. While BBU-UN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BBU-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BBU-UN was profitable.
In the past year BBU-UN had a positive cash flow from operations.
In multiple years BBU-UN reported negative net income over the last 5 years.
In the past 5 years BBU-UN always reported a positive cash flow from operatings.
1.2 Ratios
BBU-UN has a Return On Assets of -0.03%. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
BBU-UN has a Return On Equity of -1.11%. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
BBU-UN has a better Return On Invested Capital (5.13%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBU-UN is in line with the industry average of 3.74%.
The 3 year average ROIC (3.88%) for BBU-UN is below the current ROIC(5.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -1.11% | ||
| ROIC | 5.13% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)3.88%
ROIC(5y)3.69%
1.3 Margins
BBU-UN's Operating Margin of 13.25% is amongst the best of the industry. BBU-UN outperforms 100.00% of its industry peers.
BBU-UN's Operating Margin has improved in the last couple of years.
BBU-UN has a better Gross Margin (16.82%) than 75.00% of its industry peers.
BBU-UN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | N/A | ||
| GM | 16.82% |
OM growth 3Y28.36%
OM growth 5Y18.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BBU-UN is destroying value.
The number of shares outstanding for BBU-UN remains at a similar level compared to 1 year ago.
BBU-UN has less shares outstanding than it did 5 years ago.
BBU-UN has a better debt/assets ratio than last year.
2.2 Solvency
BBU-UN has a debt to FCF ratio of 36.75. This is a negative value and a sign of low solvency as BBU-UN would need 36.75 years to pay back of all of its debts.
The Debt to FCF ratio of BBU-UN (36.75) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 19.81 is on the high side and indicates that BBU-UN has dependencies on debt financing.
BBU-UN has a Debt to Equity ratio of 19.81. This is comparable to the rest of the industry: BBU-UN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC6.11%
2.3 Liquidity
BBU-UN has a Current Ratio of 1.48. This is a normal value and indicates that BBU-UN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.48, BBU-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that BBU-UN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.21, BBU-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
BBU-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -105.50%.
Looking at the last year, BBU-UN shows a very negative growth in Revenue. The Revenue has decreased by -33.70% in the last year.
BBU-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.15% yearly.
EPS 1Y (TTM)-105.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%365.22%
Revenue 1Y (TTM)-33.7%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-43.83%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-81.22%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 75.00 indicates a quite expensive valuation of BBU-UN.
BBU-UN's Price/Earnings ratio is a bit cheaper when compared to the industry. BBU-UN is cheaper than 75.00% of the companies in the same industry.
BBU-UN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 63.62 indicates a quite expensive valuation of BBU-UN.
75.00% of the companies in the same industry are more expensive than BBU-UN, based on the Price/Forward Earnings ratio.
BBU-UN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75 | ||
| Fwd PE | 63.62 |
4.2 Price Multiples
BBU-UN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBU-UN is cheaper than 100.00% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than BBU-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
BBU-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BBU-UN may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, BBU-UN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, BBU-UN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.41, BBU-UN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of BBU-UN has a limited annual growth rate of 0.87%.
BBU-UN has paid a dividend for at least 10 years, which is a reliable track record.
As BBU-UN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
BBU-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BBU-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-79.17%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:BBU-UN (6/20/2025, 7:00:00 PM)
35.25
+1.16 (+3.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners35.44%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.97B
Analysts48.57
Price Target31.02 (-12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.35
Dividend Growth(5Y)0.87%
DP-79.17%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.37%
PT rev (3m)1.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-73.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75 | ||
| Fwd PE | 63.62 | ||
| P/S | 0.1 | ||
| P/FCF | 3 | ||
| P/OCF | 1 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.47
EY1.33%
EPS(NY)0.55
Fwd EY1.57%
FCF(TTM)11.74
FCFY33.31%
OCF(TTM)35.12
OCFY99.63%
SpS343.94
BVpS20.99
TBVpS-292.15
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -1.11% | ||
| ROCE | 7.13% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 11.5% | ||
| OM | 13.25% | ||
| PM (TTM) | N/A | ||
| GM | 16.82% | ||
| FCFM | 3.41% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)3.88%
ROIC(5y)3.69%
ROICexc(3y)4.12%
ROICexc(5y)3.97%
ROICexgc(3y)8.93%
ROICexgc(5y)8.13%
ROCE(3y)5.41%
ROCE(5y)5.17%
ROICexcg growth 3Y14.92%
ROICexcg growth 5Y9.8%
ROICexc growth 3Y13.52%
ROICexc growth 5Y6.73%
OM growth 3Y28.36%
OM growth 5Y18.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
F-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Debt/EBITDA | 5.47 | ||
| Cap/Depr | 76.87% | ||
| Cap/Sales | 6.8% | ||
| Interest Coverage | 1.67 | ||
| Cash Conversion | 46.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | N/A |
F-Score4
WACC6.11%
ROIC/WACC0.84
Cap/Depr(3y)65.53%
Cap/Depr(5y)65%
Cap/Sales(3y)4.47%
Cap/Sales(5y)4.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-105.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%365.22%
EPS Next Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-33.7%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-43.83%
Revenue Next Year-81.22%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.3%
EBIT growth 3Y22.63%
EBIT growth 5Y16.66%
EBIT Next Year-60.46%
EBIT Next 3Y-23.38%
EBIT Next 5YN/A
FCF growth 1Y431.59%
FCF growth 3Y36.79%
FCF growth 5Y-6.19%
OCF growth 1Y152.27%
OCF growth 3Y22.89%
OCF growth 5Y8.8%