BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - BMG162341090
38.44 CAD
+1.29 (+3.47%)
BBU-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 3 industry peers in the Industrial Conglomerates industry. BBU-UN has an average financial health and profitability rating. BBU-UN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BBU-UN had positive 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.
Each year in the past 5 years BBU-UN had a positive operating cash flow.
1.2 Ratios
BBU-UN has a Return On Assets of -0.01%. This is in the better half of the industry: BBU-UN outperforms 66.67% of its industry peers.
BBU-UN has a Return On Equity of -0.26%. This is in the better half of the industry: BBU-UN outperforms 66.67% of its industry peers.
BBU-UN's Return On Invested Capital of 5.40% is fine compared to the rest of the industry. BBU-UN outperforms 66.67% 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 4.11%.
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 Operating Margin of 16.39%. This is amongst the best in the industry. BBU-UN outperforms 100.00% of its industry peers.
BBU-UN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 20.46%, BBU-UN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
BBU-UN's Gross Margin has improved in the last couple of years.
| 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.
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 25.10. This is a negative value and a sign of low solvency as BBU-UN would need 25.10 years to pay back of all of its debts.
BBU-UN has a Debt to FCF ratio of 25.10. This is in the better half of the industry: BBU-UN outperforms 66.67% 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.
Looking at the Debt to Equity ratio, with a value of 18.71, BBU-UN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.71 | ||
| Debt/FCF | 25.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC6.19%
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.
BBU-UN has a Current ratio of 1.67. This is in the better half of the industry: BBU-UN outperforms 66.67% of its industry peers.
BBU-UN has a Quick Ratio of 1.36. This is a normal value and indicates that BBU-UN is financially healthy and should not expect problems in meeting its short term obligations.
BBU-UN has a better Quick ratio (1.36) than 100.00% of its industry peers.
| 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%.
The Revenue for BBU-UN has decreased by -41.85% in the past year. This is quite bad
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%-43.96%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
The Revenue is expected to decrease by -54.66% on average over the next years. This is quite bad
EPS Next Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-80.41%
Revenue Next 2Y-54.66%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 49.28 indicates a quite expensive valuation of BBU-UN.
Based on the Price/Earnings ratio, BBU-UN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.24. BBU-UN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 68.51, the valuation of BBU-UN can be described as expensive.
Based on the Price/Forward Earnings ratio, BBU-UN is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, BBU-UN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.28 | ||
| Fwd PE | 68.51 |
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.
Based on the Price/Free Cash Flow ratio, BBU-UN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.2 | ||
| EV/EBITDA | 5.39 |
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.
BBU-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.27
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 2.99, BBU-UN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, BBU-UN is paying slightly less dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
The earnings of BBU-UN are negative and hence is the payout ratio. BBU-UN will probably not be able to sustain this dividend level.
The dividend of BBU-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-383.33%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:BBU-UN (8/22/2025, 7:00:00 PM)
38.44
+1.29 (+3.47%)
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 Cap5.40B
Analysts48.57
Price Target31.02 (-19.3%)
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)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)4.31%
Revenue NY rev (3m)4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.28 | ||
| Fwd PE | 68.51 | ||
| P/S | 0.13 | ||
| P/FCF | 2.2 | ||
| P/OCF | 0.97 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.39 |
EPS(TTM)0.78
EY2.03%
EPS(NY)0.56
Fwd EY1.46%
FCF(TTM)17.5
FCFY45.54%
OCF(TTM)39.58
OCFY102.96%
SpS297.7
BVpS22.66
TBVpS-298.21
PEG (NY)0.27
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
WACC6.19%
ROIC/WACC0.87
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 Y180.8%
EPS Next 2YN/A
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%-43.96%
Revenue Next Year-80.41%
Revenue Next 2Y-54.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y46.37%
EBIT growth 3Y22.63%
EBIT growth 5Y16.66%
EBIT Next Year-60.95%
EBIT Next 3Y-23.7%
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%