BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
NYSE:BBU - New York Stock Exchange, Inc. - BMG162341090 - Currency: USD
Overall BBU gets a fundamental rating of 4 out of 10. We evaluated BBU against 6 industry peers in the Industrial Conglomerates industry. Both the profitability and the financial health of BBU get a neutral evaluation. Nothing too spectacular is happening here. BBU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BBU was profitable.
In the past year BBU had a positive cash flow from operations.
In multiple years BBU reported negative net income over the last 5 years.
Each year in the past 5 years BBU had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of -0.03%, BBU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of BBU (-1.11%) is better than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 5.63%, BBU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBU is below the industry average of 8.04%.
The 3 year average ROIC (4.25%) for BBU is below the current ROIC(5.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -1.11% | ||
| ROIC | 5.63% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.25%
ROIC(5y)4.05%
1.3 Margins
Looking at the Operating Margin, with a value of 13.25%, BBU is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BBU's Operating Margin has improved in the last couple of years.
The Gross Margin of BBU (16.82%) is comparable to the rest of the industry.
BBU'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
BBU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BBU has about the same amount of shares outstanding.
Compared to 5 years ago, BBU has less shares outstanding
Compared to 1 year ago, BBU has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BBU is 36.75, which is on the high side as it means it would take BBU, 36.75 years of fcf income to pay off all of its debts.
BBU's Debt to FCF ratio of 36.75 is fine compared to the rest of the industry. BBU outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 19.81 is on the high side and indicates that BBU has dependencies on debt financing.
BBU has a worse Debt to Equity ratio (19.81) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.9
WACC6.25%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BBU should not have too much problems paying its short term obligations.
BBU has a Current ratio of 1.48. This is in the better half of the industry: BBU outperforms 66.67% of its industry peers.
BBU has a Quick Ratio of 1.21. This is a normal value and indicates that BBU 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 is in the better half of the industry, outperforming 66.67% 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 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -105.50%.
The Revenue for BBU has decreased by -33.70% in the past year. This is quite bad
Measured over the past years, BBU 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
With a Price/Earnings ratio of 73.82, BBU can be considered very expensive at the moment.
66.67% of the companies in the same industry are more expensive than BBU, based on the Price/Earnings ratio.
BBU's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 62.13 indicates a quite expensive valuation of BBU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBU is on the same level as its industry peers.
BBU is valuated expensively when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.82 | ||
| Fwd PE | 62.13 |
4.2 Price Multiples
BBU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BBU is cheaper than 100.00% of the companies in the same industry.
BBU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BBU is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
BBU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BBU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBU has a Yearly Dividend Yield of 1.41%.
BBU's Dividend Yield is comparable with the industry average which is at 5.39.
With a Dividend Yield of 1.41, BBU pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of BBU has a limited annual growth rate of 0.87%.
BBU has been paying a dividend for at least 10 years, so it has a reliable track record.
BBU has decreased its dividend recently.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of BBU are negative and hence is the payout ratio. BBU will probably not be able to sustain this dividend level.
BBU'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
NYSE:BBU (5/22/2025, 2:13:53 PM)
25.1
+0.33 (+1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners44.81%
Inst Owner Change25.91%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.54B
Analysts80
Price TargetN/A
Short Float %0.02%
Short Ratio0.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.26
Dividend Growth(5Y)0.87%
DP-79.17%
Div Incr Years0
Div Non Decr Years1
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)-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 | 73.82 | ||
| Fwd PE | 62.13 | ||
| P/S | 0.1 | ||
| P/FCF | 2.93 | ||
| P/OCF | 0.98 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.48 |
EPS(TTM)0.34
EY1.35%
EPS(NY)0.4
Fwd EY1.61%
FCF(TTM)8.56
FCFY34.11%
OCF(TTM)25.61
OCFY102.02%
SpS250.77
BVpS15.31
TBVpS-213.02
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -1.11% | ||
| ROCE | 7.13% | ||
| ROIC | 5.63% | ||
| ROICexc | 6.02% | ||
| ROICexgc | 12.62% | ||
| 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)4.25%
ROIC(5y)4.05%
ROICexc(3y)4.53%
ROICexc(5y)4.35%
ROICexgc(3y)9.8%
ROICexgc(5y)8.92%
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
WACC6.25%
ROIC/WACC0.9
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-44.12%
EBIT Next 3Y-14.87%
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%