BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
NYSE:BBU - New York Stock Exchange, Inc. - BMG162341090 - Currency: USD
We assign a fundamental rating of 4 out of 10 to BBU. BBU was compared to 6 industry peers in the Industrial Conglomerates industry. BBU has only an average score on both its financial health and profitability. BBU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BBU was profitable.
BBU had a positive operating cash flow in the past year.
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
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.
BBU has a Return On Invested Capital of 5.63%. This is in the better half of the industry: BBU outperforms 66.67% 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 7.97%.
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
BBU's Operating Margin of 13.25% is fine compared to the rest of the industry. BBU outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of BBU has grown nicely.
The Gross Margin of BBU (16.82%) is better than 66.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BBU is destroying value.
The number of shares outstanding for BBU remains at a similar level compared to 1 year ago.
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
BBU has a debt to FCF ratio of 36.75. This is a negative value and a sign of low solvency as BBU would need 36.75 years to pay back of all of its debts.
BBU has a Debt to FCF ratio of 36.75. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 19.81, BBU is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.81 | ||
| Debt/FCF | 36.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.9
WACC6.26%
2.3 Liquidity
BBU has a Current Ratio of 1.48. This is a normal value and indicates that BBU is financially healthy and should not expect problems in meeting 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.
A Quick Ratio of 1.21 indicates that BBU should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.21, BBU is doing good in 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
The earnings per share for BBU have decreased strongly by -105.50% in the last year.
BBU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.70%.
The Revenue has been decreasing by -1.15% on average over the past years.
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
Based on the Price/Earnings ratio of 74.18, the valuation of BBU can be described as expensive.
Based on the Price/Earnings ratio, BBU is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.55. BBU is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 62.43, which means the current valuation is very expensive for BBU.
BBU's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BBU to the average of the S&P500 Index (22.40), we can say BBU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.18 | ||
| Fwd PE | 62.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBU indicates a rather cheap valuation: BBU is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| 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.
The decent profitability rating of BBU 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
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 5.99.
With a Dividend Yield of 1.41, BBU pays less dividend than the S&P500 average, which is at 2.39.
| 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-79.17%
EPS Next 2YN/A
EPS Next 3YN/A
NYSE:BBU (6/11/2025, 8:04:00 PM)
25.22
+0.18 (+0.72%)
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 Cap3.56B
Analysts48.57
Price Target16.45 (-34.77%)
Short Float %0.02%
Short Ratio0.48
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)-26.64%
PT rev (3m)-26.64%
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 | 74.18 | ||
| Fwd PE | 62.43 | ||
| P/S | 0.1 | ||
| P/FCF | 2.95 | ||
| P/OCF | 0.98 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.48 |
EPS(TTM)0.34
EY1.35%
EPS(NY)0.4
Fwd EY1.6%
FCF(TTM)8.56
FCFY33.95%
OCF(TTM)25.61
OCFY101.53%
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
WACC6.26%
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-45.77%
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%