BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - Toronto Stock Exchange - BMG162341090 - Currency: CAD
BBU-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 4 industry peers in the Industrial Conglomerates industry. BBU-UN has an excellent profitability rating, but there are concerns on its financial health. BBU-UN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BBU-UN had negative earnings in the past year.
BBU-UN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BBU-UN reported negative net income in multiple years.
Of the past 5 years BBU-UN 4 years had a positive operating cash flow.
1.2 Ratios
BBU-UN has a Return On Assets of 0.75%. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
The Return On Equity of BBU-UN (30.35%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.48%, BBU-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
BBU-UN had an Average Return On Invested Capital over the past 3 years of 4.08%. This is in line with the industry average of 3.28%.
The 3 year average ROIC (4.08%) for BBU-UN is below the current ROIC(4.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROIC | 4.48% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.08%
ROIC(5y)3.81%
1.3 Margins
BBU-UN's Profit Margin of 1.29% is fine compared to the rest of the industry. BBU-UN outperforms 75.00% of its industry peers.
BBU-UN has a better Operating Margin (9.09%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of BBU-UN has grown nicely.
BBU-UN has a Gross Margin of 11.83%. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of BBU-UN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 1.29% | ||
| GM | 11.83% |
OM growth 3Y29.95%
OM growth 5Y18.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BBU-UN is destroying value.
The number of shares outstanding for BBU-UN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BBU-UN has less shares outstanding
The debt/assets ratio for BBU-UN has been reduced compared to a year ago.
2.2 Solvency
BBU-UN has a debt to FCF ratio of 205.54. This is a negative value and a sign of low solvency as BBU-UN would need 205.54 years to pay back of all of its debts.
BBU-UN has a better Debt to FCF ratio (205.54) than 75.00% of its industry peers.
BBU-UN has a Debt/Equity ratio of 20.33. This is a high value indicating a heavy dependency on external financing.
BBU-UN has a Debt to Equity ratio of 20.33. This is comparable to the rest of the industry: BBU-UN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC5.57%
2.3 Liquidity
A Current Ratio of 1.17 indicates that BBU-UN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.17, BBU-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that BBU-UN may have some problems paying its short term obligations.
BBU-UN has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for BBU-UN have decreased strongly by -107.66% in the last year.
BBU-UN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.24%.
Measured over the past years, BBU-UN shows a decrease in Revenue. The Revenue has been decreasing by -1.15% on average per year.
EPS 1Y (TTM)-107.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-130.75%
Revenue 1Y (TTM)-26.24%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.6%
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
BBU-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 53.45 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 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBU-UN indicates a rather cheap valuation: BBU-UN is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBU-UN indicates a rather cheap valuation: BBU-UN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
The 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)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBU-UN has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.69, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of BBU-UN decreases each year by -45.77%.
BBU-UN has paid a dividend for at least 10 years, which is a reliable track record.
BBU-UN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-45.77%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
BBU-UN pays out 3.16% of its income as dividend. This is a sustainable payout ratio.
DP3.16%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:BBU-UN (5/1/2025, 7:00:00 PM)
29.86
-0.55 (-1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners44.81%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.21B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.35
Dividend Growth(5Y)-45.77%
DP3.16%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)440.59%
Min EPS beat(2)-395.05%
Max EPS beat(2)1276.24%
EPS beat(4)3
Avg EPS beat(4)249.23%
Min EPS beat(4)-395.05%
Max EPS beat(4)1276.24%
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)0
Avg Revenue beat(2)-36.92%
Min Revenue beat(2)-47.12%
Max Revenue beat(2)-26.72%
Revenue beat(4)0
Avg Revenue beat(4)-29.8%
Min Revenue beat(4)-47.12%
Max Revenue beat(4)-19.79%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-73.55%
Revenue NY rev (3m)-84.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.45 | ||
| P/S | 0.07 | ||
| P/FCF | 14.71 | ||
| P/OCF | 1.11 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.45 |
EPS(TTM)-0.69
EYN/A
EPS(NY)0.56
Fwd EY1.87%
FCF(TTM)2.03
FCFY6.8%
OCF(TTM)26.96
OCFY90.27%
SpS457.1
BVpS19.42
TBVpS-303.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROCE | 6.22% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 9.67% | ||
| OM | 9.09% | ||
| PM (TTM) | 1.29% | ||
| GM | 11.83% | ||
| FCFM | 0.44% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.08%
ROIC(5y)3.81%
ROICexc(3y)4.89%
ROICexc(5y)4.43%
ROICexgc(3y)14.02%
ROICexgc(5y)11.18%
ROCE(3y)5.79%
ROCE(5y)5.39%
ROICexcg growth 3Y53.08%
ROICexcg growth 5Y30.41%
ROICexc growth 3Y27.75%
ROICexc growth 5Y14.56%
OM growth 3Y29.95%
OM growth 5Y18.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 76.63% | ||
| Cap/Sales | 5.45% | ||
| Interest Coverage | 1.24 | ||
| Cash Conversion | 36.39% | ||
| Profit Quality | 34.44% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | N/A |
F-Score6
WACC5.57%
ROIC/WACC0.8
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-130.75%
EPS Next Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-26.24%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.6%
Revenue Next Year-81.22%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.48%
EBIT growth 3Y24.15%
EBIT growth 5Y17.52%
EBIT Next Year-61.05%
EBIT Next 3Y-24.52%
EBIT Next 5YN/A
FCF growth 1Y144.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.3%
OCF growth 3YN/A
OCF growth 5YN/A