BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
USA - NYSE:BBU - BMG162341090
34.06 USD
-0.52 (-1.5%)
Overall BBU gets a fundamental rating of 4 out of 10. We evaluated BBU against 7 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 has a bad growth rate and is valued cheaply. These ratings could make BBU a good candidate for value investing.
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.
In the past 5 years BBU always reported a positive cash flow from operatings.
1.2 Ratios
BBU has a Return On Assets of -0.01%. This is comparable to the rest of the industry: BBU outperforms 57.14% of its industry peers.
With a Return On Equity value of -0.26%, BBU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
BBU has a Return On Invested Capital of 5.92%. This is in the better half of the industry: BBU outperforms 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 8.05%.
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
BBU has a better Operating Margin (16.39%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of BBU has grown nicely.
BBU's Gross Margin of 20.46% is fine compared to the rest of the industry. BBU outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of BBU has grown nicely.
| 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.
BBU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BBU has an improved debt to assets ratio.
2.2 Solvency
BBU has a debt to FCF ratio of 25.10. This is a negative value and a sign of low solvency as BBU would need 25.10 years to pay back of all of its debts.
BBU has a better Debt to FCF ratio (25.10) than 85.71% of its industry peers.
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
WACC6.48%
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.
BBU's Current ratio of 1.67 is fine compared to the rest of the industry. BBU outperforms 71.43% of its industry peers.
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 belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for BBU have decreased strongly by -91.38% in the last year.
Looking at the last year, BBU shows a very negative growth in Revenue. The Revenue has decreased by -41.85% in the last year.
BBU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.15% yearly.
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
BBU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 187.09% yearly.
BBU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -53.53% yearly.
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
With a Price/Earnings ratio of 60.82, BBU can be considered very expensive at the moment.
BBU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BBU to the average of the S&P500 Index (27.70), we can say BBU is valued expensively.
A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of BBU.
Based on the Price/Forward Earnings ratio, BBU is valued cheaper than 100.00% of the companies in the same industry.
BBU is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.82 | ||
| Fwd PE | 10.91 |
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.
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 | 2.7 | ||
| EV/EBITDA | 5.51 |
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 187.09% 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
BBU has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
BBU's Dividend Yield is comparable with the industry average which is at 6.03.
Compared to an average S&P500 Dividend Yield of 2.44, BBU's dividend is way lower than the S&P500 average.
| 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.
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 (10/9/2025, 8:56:21 PM)
34.06
-0.52 (-1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners32.8%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap4.78B
Analysts48.57
Price Target22.28 (-34.59%)
Short Float %0.05%
Short Ratio0.45
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)-0.71%
PT rev (3m)-2.29%
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)8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.82 | ||
| Fwd PE | 10.91 | ||
| P/S | 0.16 | ||
| P/FCF | 2.7 | ||
| P/OCF | 1.19 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.51 |
EPS(TTM)0.56
EY1.64%
EPS(NY)3.12
Fwd EY9.16%
FCF(TTM)12.61
FCFY37.03%
OCF(TTM)28.52
OCFY83.72%
SpS214.5
BVpS16.32
TBVpS-214.86
PEG (NY)0.15
PEG (5Y)N/A
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%
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 Turnover0.4
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
WACC6.48%
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%