BROOKFIELD BUSINESS PT-UNIT (BBU) Fundamental Analysis & Valuation

NYSE:BBU • BMG162341090

Current stock price

31.46 USD
-0.67 (-2.09%)
Last:

This BBU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. BBU Profitability Analysis

1.1 Basic Checks

  • BBU had positive earnings in the past year.
  • 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.
  • Of the past 5 years BBU 4 years had a positive operating cash flow.
BBU Yearly Net Income VS EBIT VS OCF VS FCFBBU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.18%, BBU is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • BBU has a Return On Equity (-5.69%) which is comparable to the rest of the industry.
  • BBU has a better Return On Invested Capital (4.95%) than 71.43% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BBU is below the industry average of 9.54%.
Industry RankSector Rank
ROA -0.18%
ROE -5.69%
ROIC 4.95%
ROA(3y)0.17%
ROA(5y)0.19%
ROE(3y)7.33%
ROE(5y)7.2%
ROIC(3y)5.01%
ROIC(5y)4.42%
BBU Yearly ROA, ROE, ROICBBU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

1.3 Margins

  • Looking at the Operating Margin, with a value of 14.64%, 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.
  • BBU's Gross Margin of 18.90% is in line compared to the rest of the industry. BBU outperforms 57.14% of its industry peers.
  • In the last couple of years the Gross Margin of BBU has grown nicely.
Industry RankSector Rank
OM 14.64%
PM (TTM) N/A
GM 18.9%
OM growth 3Y41.95%
OM growth 5Y21.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.93%
GM growth 5Y6.91%
BBU Yearly Profit, Operating, Gross MarginsBBU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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3

2. BBU Health Analysis

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.
  • The number of shares outstanding for BBU has been increased compared to 1 year ago.
  • BBU has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for BBU is higher compared to a year ago.
BBU Yearly Shares OutstandingBBU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
BBU Yearly Total Debt VS Total AssetsBBU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • The Debt to FCF ratio of BBU is 32.93, which is on the high side as it means it would take BBU, 32.93 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 32.93, BBU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
  • A Debt/Equity ratio of 18.12 is on the high side and indicates that BBU has dependencies on debt financing.
  • The Debt to Equity ratio of BBU (18.12) is worse than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 18.12
Debt/FCF 32.93
Altman-Z N/A
ROIC/WACC0.76
WACC6.52%
BBU Yearly LT Debt VS Equity VS FCFBBU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

2.3 Liquidity

  • BBU has a Current Ratio of 1.71. This is a normal value and indicates that BBU is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of BBU (1.71) is better than 71.43% of its industry peers.
  • A Quick Ratio of 1.41 indicates that BBU should not have too much problems paying its short term obligations.
  • BBU has a better Quick ratio (1.41) than 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.41
BBU Yearly Current Assets VS Current LiabilitesBBU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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2

3. BBU Growth Analysis

3.1 Past

  • BBU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 186.00%, which is quite impressive.
  • Looking at the last year, BBU shows a very negative growth in Revenue. The Revenue has decreased by -32.41% in the last year.
  • The Revenue has been decreasing by -6.11% on average over the past years.
EPS 1Y (TTM)186%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.24%
Revenue 1Y (TTM)-32.41%
Revenue growth 3Y-21.79%
Revenue growth 5Y-6.11%
Sales Q2Q%-4.48%

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 138.42% on average per year.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y308.7%
EPS Next 2Y138.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.85%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
BBU Yearly Revenue VS EstimatesBBU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B 50B
BBU Yearly EPS VS EstimatesBBU Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

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5

4. BBU Valuation Analysis

4.1 Price/Earnings Ratio

  • BBU is valuated quite expensively with a Price/Earnings ratio of 73.16.
  • Compared to the rest of the industry, the Price/Earnings ratio of BBU is on the same level as its industry peers.
  • BBU's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.42.
  • With a Price/Forward Earnings ratio of 17.90, BBU is valued on the expensive side.
  • BBU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBU is cheaper than 71.43% of the companies in the same industry.
  • BBU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 73.16
Fwd PE 17.9
BBU Price Earnings VS Forward Price EarningsBBU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBU indicates a rather cheap valuation: BBU is cheaper than 100.00% of the companies listed in the same industry.
  • 100.00% of the companies in the same industry are more expensive than BBU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.27
EV/EBITDA 6.07
BBU Per share dataBBU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200

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.
  • A more expensive valuation may be justified as BBU's earnings are expected to grow with 138.42% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y138.42%
EPS Next 3YN/A

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3

5. BBU Dividend Analysis

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 5.13.
  • BBU's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector 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 in the last 3 years.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years2
BBU Yearly Dividends per shareBBU Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.05 0.1 0.15 0.2 0.25

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-15.67%
EPS Next 2Y138.42%
EPS Next 3YN/A
BBU Yearly Income VS Free CF VS DividendBBU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

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BBU Fundamentals: All Metrics, Ratios and Statistics

BROOKFIELD BUSINESS PT-UNIT

NYSE:BBU (3/30/2026, 8:04:00 PM)

31.46

-0.67 (-2.09%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)01-30
Earnings (Next)04-30
Inst Owners33.51%
Inst Owner Change-0.04%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap4.38B
Revenue(TTM)27.46B
Net Income(TTM)-134.00M
Analysts80
Price Target22.75 (-27.69%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.41%
Yearly Dividend0.26
Dividend Growth(5Y)0.87%
DP-15.67%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-23
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-105.38%
Min EPS beat(2)-160.27%
Max EPS beat(2)-50.49%
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)1
Avg Revenue beat(2)73.28%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)148.89%
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)1.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 73.16
Fwd PE 17.9
P/S 0.16
P/FCF 3.27
P/OCF 1.27
P/B 1.86
P/tB N/A
EV/EBITDA 6.07
EPS(TTM)0.43
EY1.37%
EPS(NY)1.76
Fwd EY5.59%
FCF(TTM)9.63
FCFY30.6%
OCF(TTM)24.73
OCFY78.6%
SpS199.66
BVpS16.91
TBVpS-214.19
PEG (NY)0.24
PEG (5Y)N/A
Graham Number12.7916 (-59.34%)
Profitability
Industry RankSector Rank
ROA -0.18%
ROE -5.69%
ROCE 6.14%
ROIC 4.95%
ROICexc 5.3%
ROICexgc 11.03%
OM 14.64%
PM (TTM) N/A
GM 18.9%
FCFM 4.82%
ROA(3y)0.17%
ROA(5y)0.19%
ROE(3y)7.33%
ROE(5y)7.2%
ROIC(3y)5.01%
ROIC(5y)4.42%
ROICexc(3y)5.84%
ROICexc(5y)5.01%
ROICexgc(3y)15.16%
ROICexgc(5y)12.34%
ROCE(3y)6.28%
ROCE(5y)5.53%
ROICexgc growth 3Y43.34%
ROICexgc growth 5Y26.49%
ROICexc growth 3Y27.49%
ROICexc growth 5Y11%
OM growth 3Y41.95%
OM growth 5Y21.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.93%
GM growth 5Y6.91%
F-Score4
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 18.12
Debt/FCF 32.93
Debt/EBITDA 5.99
Cap/Depr 68.96%
Cap/Sales 7.56%
Interest Coverage 1.48
Cash Conversion 48.37%
Profit Quality N/A
Current Ratio 1.71
Quick Ratio 1.41
Altman-Z N/A
F-Score4
WACC6.52%
ROIC/WACC0.76
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)186%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.24%
EPS Next Y308.7%
EPS Next 2Y138.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-32.41%
Revenue growth 3Y-21.79%
Revenue growth 5Y-6.11%
Sales Q2Q%-4.48%
Revenue Next Year5.85%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.94%
EBIT growth 3Y11.02%
EBIT growth 5Y14.39%
EBIT Next Year1235.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y547.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.25%
OCF growth 3YN/A
OCF growth 5YN/A

BROOKFIELD BUSINESS PT-UNIT / BBU Fundamental Analysis 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 of BROOKFIELD BUSINESS PT-UNIT (BBU) stock?

ChartMill assigns a valuation rating of 6 / 10 to BROOKFIELD BUSINESS PT-UNIT (BBU). This can be considered as Fairly Valued.


What is the profitability of BBU stock?

BROOKFIELD BUSINESS PT-UNIT (BBU) has a profitability rating of 4 / 10.


Can you provide the financial health for BBU stock?

The financial health rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 3 / 10.


What is the expected EPS growth for BROOKFIELD BUSINESS PT-UNIT (BBU) stock?

The Earnings per Share (EPS) of BROOKFIELD BUSINESS PT-UNIT (BBU) is expected to grow by 308.7% in the next year.