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 5 out of 10. We evaluated BBU-UN against 3 industry peers in the Industrial Conglomerates industry. While BBU-UN has a great profitability rating, there are some minor concerns on its financial health. 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.
In multiple years BBU-UN reported negative net income over the last 5 years.
BBU-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -0.03%, BBU-UN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
BBU-UN's Return On Equity of -1.11% is fine compared to the rest of the industry. BBU-UN outperforms 66.67% of its industry peers.
With an excellent Return On Invested Capital value of 5.13%, BBU-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBU-UN is in line with the industry average of 3.82%.
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
BBU-UN's Operating Margin of 13.25% is amongst the best of the industry. BBU-UN outperforms 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 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of BBU-UN has grown nicely.
| 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.
The number of shares outstanding for BBU-UN has been reduced compared to 5 years ago.
The debt/assets ratio for BBU-UN has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BBU-UN is 36.75, which is on the high side as it means it would take BBU-UN, 36.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 36.75, BBU-UN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 in the better half of the industry: BBU-UN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC5.8%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BBU-UN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, BBU-UN is in the better half of the industry, outperforming 66.67% 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.
BBU-UN's Quick ratio of 1.21 is amongst the best of the industry. BBU-UN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for BBU-UN have decreased strongly by -105.50% in the last year.
The Revenue for BBU-UN has decreased by -33.70% 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)-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 72.91.
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.
BBU-UN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.25.
BBU-UN is valuated quite expensively with a Price/Forward Earnings ratio of 61.37.
BBU-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBU-UN is cheaper than 66.67% of the companies in the same industry.
BBU-UN is valuated expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.91 | ||
| Fwd PE | 61.37 |
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 | 2.9 | ||
| EV/EBITDA | 5.48 |
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)0.4
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%.
Compared to an average industry Dividend Yield of 3.19, BBU-UN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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
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.
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 (5/30/2025, 7:00:00 PM)
34.27
+0.3 (+0.88%)
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 Cap4.83B
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)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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-73.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.91 | ||
| Fwd PE | 61.37 | ||
| P/S | 0.1 | ||
| P/FCF | 2.9 | ||
| P/OCF | 0.97 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.48 |
EPS(TTM)0.47
EY1.37%
EPS(NY)0.56
Fwd EY1.63%
FCF(TTM)11.83
FCFY34.53%
OCF(TTM)35.4
OCFY103.29%
SpS346.65
BVpS21.16
TBVpS-294.46
PEG (NY)0.4
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
WACC5.8%
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)-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-60.77%
EBIT Next 3Y-23.58%
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%