BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
USA - NYSE:BBU - BMG162341090
35.29 USD
+0.69 (+1.99%)
Taking everything into account, BBU scores 4 out of 10 in our fundamental rating. BBU was compared to 7 industry peers in the Industrial Conglomerates industry. BBU has only an average score on both its financial health and profitability. 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.
The reported net income has been mixed in the past 5 years: BBU reported negative net income in multiple years.
In the past 5 years BBU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BBU (-0.01%) is comparable to the rest of the industry.
BBU has a Return On Equity (-0.26%) which is comparable to the rest of the industry.
BBU has a better Return On Invested Capital (5.92%) than 71.43% of its industry peers.
BBU had an Average Return On Invested Capital over the past 3 years of 4.25%. This is below the industry average of 8.23%.
The last Return On Invested Capital (5.92%) for BBU is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.26% | ||
| ROIC | 5.92% |
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 16.39%, BBU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
BBU's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.46%, BBU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
BBU'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
BBU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BBU has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BBU has less shares outstanding
BBU has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BBU is 25.10, which is on the high side as it means it would take BBU, 25.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.10, BBU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 18.71 is on the high side and indicates that BBU has dependencies on debt financing.
With a Debt to Equity ratio value of 18.71, BBU is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.71 | ||
| Debt/FCF | 25.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC6.51%
2.3 Liquidity
BBU has a Current Ratio of 1.67. 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 Current ratio, with a value of 1.67, BBU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that BBU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, BBU is in the better half of the industry, outperforming 71.43% 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 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 shows a very negative growth in Revenue. The Revenue has decreased by -41.85% in the last year.
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)-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 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
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 63.02 indicates a quite expensive valuation of BBU.
Compared to the rest of the industry, the Price/Earnings ratio of BBU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.11, BBU is valued quite expensively.
Based on the Price/Forward Earnings ratio of 11.31, the valuation of BBU can be described as reasonable.
Based on the Price/Forward Earnings ratio, BBU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BBU to the average of the S&P500 Index (22.55), we can say BBU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.02 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than BBU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BBU is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.8 | ||
| EV/EBITDA | 5.53 |
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's earnings are expected to grow with 187.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
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 has a reasonable but not impressive dividend return.
BBU's Dividend Yield is comparable with the industry average which is at 6.21.
With a Dividend Yield of 1.41, BBU pays less dividend than the S&P500 average, which is at 2.37.
| 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.
The dividend of BBU decreased recently.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
BBU has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of BBU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-383.33%
EPS Next 2Y187.09%
EPS Next 3YN/A
NYSE:BBU (10/31/2025, 8:27:53 PM)
35.29
+0.69 (+1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners32.8%
Inst Owner Change-0.18%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap4.95B
Revenue(TTM)30.10B
Net Income(TTM)-6000000
Analysts48.57
Price Target22.36 (-36.64%)
Short Float %0.14%
Short Ratio0.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.26
Dividend Growth(5Y)0.87%
DP-383.33%
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)-0.82%
PT rev (3m)0.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.33%
EPS NY rev (1m)0%
EPS NY rev (3m)290%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.02 | ||
| Fwd PE | 11.31 | ||
| P/S | 0.16 | ||
| P/FCF | 2.8 | ||
| P/OCF | 1.24 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)0.56
EY1.59%
EPS(NY)3.12
Fwd EY8.84%
FCF(TTM)12.61
FCFY35.74%
OCF(TTM)28.52
OCFY80.81%
SpS214.5
BVpS16.32
TBVpS-214.86
PEG (NY)0.15
PEG (5Y)N/A
Graham Number14.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.01% | ||
| ROE | -0.26% | ||
| ROCE | 7.5% | ||
| ROIC | 5.92% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 13.36% | ||
| 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)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%
ROICexgc growth 3Y14.92%
ROICexgc 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
WACC6.51%
ROIC/WACC0.91
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-46.2%
EBIT Next 3Y-14.87%
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%
BROOKFIELD BUSINESS PT-UNIT / BBU FAQ
What is the ChartMill fundamental rating of BROOKFIELD BUSINESS PT-UNIT (BBU) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BBU.
What is the valuation status for BBU stock?
ChartMill assigns a valuation rating of 6 / 10 to BROOKFIELD BUSINESS PT-UNIT (BBU). This can be considered as Fairly Valued.
Can you provide the profitability details for BROOKFIELD BUSINESS PT-UNIT?
BROOKFIELD BUSINESS PT-UNIT (BBU) has a profitability rating of 5 / 10.
Can you provide the financial health for BBU stock?
The financial health rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 4 / 10.
Is the dividend of BROOKFIELD BUSINESS PT-UNIT sustainable?
The dividend rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 3 / 10 and the dividend payout ratio is -383.33%.