BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
Canada - TSX:BBU-UN - BMG162341090
37.4 CAD
-0.87 (-2.27%)
Taking everything into account, BBU-UN scores 5 out of 10 in our fundamental rating. BBU-UN was compared to 3 industry peers in the Industrial Conglomerates industry. BBU-UN has an average financial health and profitability rating. BBU-UN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
BBU-UN had positive earnings in the past year.
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.
Each year in the past 5 years BBU-UN had a positive operating cash flow.
1.2 Ratios
BBU-UN has a better Return On Assets (-0.01%) than 75.00% of its industry peers.
The Return On Equity of BBU-UN (-0.26%) is better than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.40%, BBU-UN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBU-UN is in line with the industry average of 4.39%.
The 3 year average ROIC (3.88%) for BBU-UN is below the current ROIC(5.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.26% | ||
| ROIC | 5.4% |
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 has a better Operating Margin (16.39%) than 100.00% of its industry peers.
BBU-UN's Operating Margin has improved in the last couple of years.
BBU-UN's Gross Margin of 20.46% is fine compared to the rest 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 | 16.39% | ||
| PM (TTM) | N/A | ||
| GM | 20.46% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BBU-UN is destroying value.
Compared to 1 year ago, BBU-UN has about the same amount of shares outstanding.
The number of shares outstanding for BBU-UN has been reduced compared to 5 years ago.
BBU-UN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BBU-UN is 25.10, which is on the high side as it means it would take BBU-UN, 25.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BBU-UN (25.10) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 18.71 is on the high side and indicates that BBU-UN has dependencies on debt financing.
BBU-UN has a Debt to Equity ratio (18.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.71 | ||
| Debt/FCF | 25.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC6.14%
2.3 Liquidity
BBU-UN has a Current Ratio of 1.67. This is a normal value and indicates that BBU-UN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BBU-UN (1.67) is better than 75.00% of its industry peers.
A Quick Ratio of 1.36 indicates that BBU-UN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, BBU-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
BBU-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -91.38%.
Looking at the last year, BBU-UN shows a very negative growth in Revenue. The Revenue has decreased by -41.85% 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)-91.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%220%
Revenue 1Y (TTM)-41.85%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-78.13%
3.2 Future
Based on estimates for the next years, BBU-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 187.09% on average per year.
The Revenue is expected to decrease by -53.53% on average over the next years. This is quite bad
EPS Next Y415.12%
EPS Next 2Y187.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-79.6%
Revenue Next 2Y-53.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 47.95 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.
The average S&P500 Price/Earnings ratio is at 27.30. BBU-UN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 8.65 indicates a reasonable valuation of BBU-UN.
Based on the Price/Forward Earnings ratio, BBU-UN is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, BBU-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.95 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBU-UN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
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 | 2.14 | ||
| EV/EBITDA | 5.39 |
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.
BBU-UN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BBU-UN's earnings are expected to grow with 187.09% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y187.09%
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.
BBU-UN's Dividend Yield is a higher than the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.41, BBU-UN's dividend is way lower than the S&P500 average.
| 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.
The dividend of BBU-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-383.33%
EPS Next 2Y187.09%
EPS Next 3YN/A
TSX:BBU-UN (9/12/2025, 7:00:00 PM)
37.4
-0.87 (-2.27%)
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 Cap5.25B
Analysts48.57
Price Target31.02 (-17.06%)
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-383.33%
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)0%
PT rev (3m)38.19%
EPS NQ rev (1m)53.33%
EPS NQ rev (3m)N/A
EPS NY rev (1m)290%
EPS NY rev (3m)290%
Revenue NQ rev (1m)-1.56%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.13%
Revenue NY rev (3m)8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.95 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.13 | ||
| P/FCF | 2.14 | ||
| P/OCF | 0.95 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.39 |
EPS(TTM)0.78
EY2.09%
EPS(NY)4.32
Fwd EY11.56%
FCF(TTM)17.47
FCFY46.7%
OCF(TTM)39.49
OCFY105.59%
SpS297.04
BVpS22.61
TBVpS-297.54
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.26% | ||
| ROCE | 7.5% | ||
| ROIC | 5.4% | ||
| ROICexc | 5.76% | ||
| ROICexgc | 12.17% | ||
| OM | 16.39% | ||
| PM (TTM) | N/A | ||
| GM | 20.46% | ||
| FCFM | 5.88% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.71 | ||
| Debt/FCF | 25.1 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 72.37% | ||
| Cap/Sales | 7.41% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 49.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | N/A |
F-Score4
WACC6.14%
ROIC/WACC0.88
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)-91.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%220%
EPS Next Y415.12%
EPS Next 2Y187.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-41.85%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-78.13%
Revenue Next Year-79.6%
Revenue Next 2Y-53.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y46.37%
EBIT growth 3Y22.63%
EBIT growth 5Y16.66%
EBIT Next Year-60.84%
EBIT Next 3Y-23.62%
EBIT Next 5YN/A
FCF growth 1Y376.56%
FCF growth 3Y36.79%
FCF growth 5Y-6.19%
OCF growth 1Y205.96%
OCF growth 3Y22.89%
OCF growth 5Y8.8%