BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BBU • BMG162341090
34.99 USD
+0.15 (+0.43%)
Last: Jan 30, 2026, 01:56 PM
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 an average financial health and profitability rating. 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
- BBU had negative 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.
- Each year in the past 5 years BBU had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -0.18%, BBU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -5.69%, BBU is in line with its industry, outperforming 57.14% of the companies in the same industry.
- With a decent Return On Invested Capital value of 4.85%, BBU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BBU is below the industry average of 7.65%.
- The last Return On Invested Capital (4.85%) for BBU is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -5.69% | ||
| ROIC | 4.85% |
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
- With a decent Operating Margin value of 14.64%, BBU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- In the last couple of years the Operating Margin of BBU has grown nicely.
- With a Gross Margin value of 18.90%, BBU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Gross Margin of BBU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | N/A | ||
| GM | 18.9% |
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.
- 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
- Compared to 1 year ago, BBU has an improved debt to assets ratio.
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.
- The Debt to FCF ratio of BBU (32.93) is better than 71.43% of its industry peers.
- A Debt/Equity ratio of 18.12 is on the high side and indicates that BBU has dependencies on debt financing.
- With a Debt to Equity ratio value of 18.12, 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 | 18.12 | ||
| Debt/FCF | 32.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC6.51%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that BBU should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The earnings per share for BBU have decreased strongly by -113.72% in the last year.
- The Revenue for BBU has decreased by -40.36% 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)-113.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-120.14%
Revenue 1Y (TTM)-40.36%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-25.05%
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 187.44% on average per year.
- Based on estimates for the next years, BBU will show a very negative growth in Revenue. The Revenue will decrease by -53.53% on average per year.
EPS Next Y411.08%
EPS Next 2Y187.44%
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
- The Price/Earnings Ratio is negative for BBU. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 11.18 indicates a reasonable valuation of BBU.
- Based on the Price/Forward Earnings ratio, BBU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, BBU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.18 |
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.
- Based on the Price/Free Cash Flow ratio, BBU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.66 | ||
| EV/EBITDA | 6.14 |
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's earnings are expected to grow with 187.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y187.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- BBU has a Yearly Dividend Yield of 1.41%.
- Compared to an average industry Dividend Yield of 4.46, BBU has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, BBU is paying slightly less dividend.
| 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
- The earnings of BBU are negative and hence is the payout ratio. BBU will probably not be able to sustain this dividend level.
- The dividend of BBU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-15.67%
EPS Next 2Y187.44%
EPS Next 3YN/A
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 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.
Can you provide the profitability details for BROOKFIELD BUSINESS PT-UNIT?
BROOKFIELD BUSINESS PT-UNIT (BBU) has a profitability rating of 5 / 10.
What is the financial health of BROOKFIELD BUSINESS PT-UNIT (BBU) stock?
The financial health rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 4 / 10.
Can you provide the dividend sustainability for BBU stock?
The dividend rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 3 / 10 and the dividend payout ratio is -15.67%.