BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
NYSE:BBU - BMG162341090
28.09 USD
+0.18 (+0.64%)
Taking everything into account, BBU scores 5 out of 10 in our fundamental rating. BBU was compared to 6 industry peers in the Industrial Conglomerates industry. BBU has an average financial health and profitability rating. BBU is cheap, but on the other hand it scores bad on growth. These ratings would make BBU suitable for value investing!
1. Profitability
1.1 Basic Checks
BBU had positive earnings in the past year.
BBU had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of -0.01%, BBU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of -0.26%, BBU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of BBU (5.92%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBU 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's Operating Margin of 16.39% is fine compared to the rest of the industry. BBU outperforms 66.67% of its industry peers.
BBU's Operating Margin has improved in the last couple of years.
BBU has a Gross Margin of 20.46%. This is in the better half of the industry: BBU outperforms 66.67% of its industry peers.
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
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.
The number of shares outstanding for BBU has been reduced compared to 5 years ago.
The debt/assets ratio for BBU has been reduced compared to a year ago.
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.
The Debt to FCF ratio of BBU (25.10) is better than 83.33% of its industry peers.
BBU has a Debt/Equity ratio of 18.71. This is a high value indicating a heavy dependency on external financing.
BBU's Debt to Equity ratio of 18.71 is on the low side compared to the rest of the industry. BBU is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.71 | ||
| Debt/FCF | 25.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC6.32%
2.3 Liquidity
A Current Ratio of 1.67 indicates that BBU should not have too much problems paying its short term obligations.
BBU has a Current ratio of 1.67. This is in the better half of the industry: BBU outperforms 66.67% of its industry peers.
BBU has a Quick Ratio of 1.36. 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 Quick ratio of 1.36. This is amongst the best in the industry. BBU outperforms 83.33% of its industry peers.
| 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%-43.96%
3.2 Future
The Earnings Per Share is expected to grow by 187.09% on average over the next years. This is a very strong growth
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.16, BBU can be considered very expensive at the moment.
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 27.08. BBU is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 9.00, the valuation of BBU can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBU indicates a rather cheap valuation: BBU is cheaper than 100.00% of the companies listed in the same industry.
BBU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.16 | ||
| Fwd PE | 9 |
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.
100.00% of the companies in the same industry are more expensive than BBU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 5.41 |
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.
BBU's earnings are expected to grow with 187.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
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.
Compared to an average industry Dividend Yield of 6.05, BBU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, 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.
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 (8/27/2025, 1:16:46 PM)
28.09
+0.18 (+0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners35.44%
Inst Owner Change-0.65%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.94B
Analysts48.57
Price Target22.44 (-20.11%)
Short Float %0.03%
Short Ratio0.56
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)0.5%
PT rev (3m)0.07%
EPS NQ rev (1m)53.33%
EPS NQ rev (3m)N/A
EPS NY rev (1m)290%
EPS NY rev (3m)290%
Revenue NQ rev (1m)11.15%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)8.61%
Revenue NY rev (3m)8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.16 | ||
| Fwd PE | 9 | ||
| P/S | 0.13 | ||
| P/FCF | 2.23 | ||
| P/OCF | 0.99 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)0.56
EY1.99%
EPS(NY)3.12
Fwd EY11.11%
FCF(TTM)12.6
FCFY44.87%
OCF(TTM)28.5
OCFY101.45%
SpS214.36
BVpS16.31
TBVpS-214.73
PEG (NY)0.12
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
WACC6.32%
ROIC/WACC0.94
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%-43.96%
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-45.77%
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%