BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - Toronto Stock Exchange - BMG162341090 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BBU-UN. BBU-UN was compared to 4 industry peers in the Industrial Conglomerates industry. BBU-UN scores excellent on profitability, but 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
BBU-UN had positive earnings in the past year.
In the past year BBU-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BBU-UN reported negative net income in multiple years.
BBU-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BBU-UN (-0.03%) is better than 75.00% of its industry peers.
With a decent Return On Equity value of -1.11%, BBU-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
BBU-UN's Return On Invested Capital of 5.13% is amongst the best of the industry. BBU-UN outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBU-UN is in line with the industry average of 3.74%.
The last Return On Invested Capital (5.13%) for BBU-UN is above the 3 year average (3.88%), which is a sign of increasing profitability.
| 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
The Operating Margin of BBU-UN (13.25%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of BBU-UN has grown nicely.
Looking at the Gross Margin, with a value of 16.82%, BBU-UN is in the better half of the industry, outperforming 75.00% 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 | 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.
Compared to 1 year ago, BBU-UN has about the same amount of shares outstanding.
BBU-UN has less shares outstanding than it did 5 years ago.
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 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.
BBU-UN has a Debt/Equity ratio of 19.81. This is a high value indicating a heavy dependency on external financing.
BBU-UN has a Debt to Equity ratio (19.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC6.03%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BBU-UN should not have too much problems paying its short term obligations.
BBU-UN's Current ratio of 1.48 is fine compared to the rest of the industry. BBU-UN outperforms 75.00% of its industry peers.
BBU-UN has a Quick Ratio of 1.21. This is a normal value and indicates that BBU-UN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.21, 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 | 1.48 | ||
| 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%.
The Revenue for BBU-UN has decreased by -33.70% in the past year. This is quite bad
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)-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
BBU-UN is valuated quite expensively with a Price/Earnings ratio of 70.51.
Based on the Price/Earnings ratio, BBU-UN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. BBU-UN is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 59.28, which means the current valuation is very expensive for BBU-UN.
BBU-UN's Price/Forward 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/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.51 | ||
| Fwd PE | 59.28 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than BBU-UN, based on the Enterprise Value to EBITDA ratio.
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 | 2.79 | ||
| EV/EBITDA | 5.46 |
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.
PEG (NY)0.39
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.
BBU-UN's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.39, 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.
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 (8/1/2025, 7:00:00 PM)
33.14
-0.19 (-0.57%)
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 Cap4.65B
Analysts48.57
Price Target31.02 (-6.4%)
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)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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.51 | ||
| Fwd PE | 59.28 | ||
| P/S | 0.1 | ||
| P/FCF | 2.79 | ||
| P/OCF | 0.93 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)0.47
EY1.42%
EPS(NY)0.56
Fwd EY1.69%
FCF(TTM)11.89
FCFY35.89%
OCF(TTM)35.57
OCFY107.33%
SpS348.36
BVpS21.26
TBVpS-295.91
PEG (NY)0.39
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
WACC6.03%
ROIC/WACC0.85
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-60.81%
EBIT Next 3Y-23.6%
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%