BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBU - BMG162341090
34.96 USD
+1.44 (+4.3%)
BBU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 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.
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 (-0.18%) which is comparable to the rest of the industry.
BBU has a Return On Equity (-5.69%) which is in line with its industry peers.
BBU's Return On Invested Capital of 4.85% is fine compared to the rest 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 7.93%.
The 3 year average ROIC (4.25%) for BBU is below the current ROIC(4.85%), indicating increased profibility in the last year.
| 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
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.
The Gross Margin of BBU (18.90%) is comparable to the rest of the 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
BBU has a better debt/assets ratio than last year.
2.2 Solvency
BBU has a debt to FCF ratio of 32.93. This is a negative value and a sign of low solvency as BBU would need 32.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 32.93, BBU is in the better half of 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.
BBU has a worse Debt to Equity ratio (18.12) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.12 | ||
| Debt/FCF | 32.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC6.45%
2.3 Liquidity
A Current Ratio of 1.71 indicates that BBU should not have too much problems paying its short term obligations.
BBU's Current ratio of 1.71 is fine compared to the rest of the industry. BBU outperforms 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 Quick ratio of 1.41. This is amongst the best in the industry. BBU outperforms 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.
BBU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -40.36%.
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
BBU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 187.44% 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 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
BBU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 11.17 indicates a reasonable valuation of BBU.
BBU's Price/Forward Earnings ratio is rather cheap when compared to the industry. BBU is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, BBU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBU is valued 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 | 6.12 |
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
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 6.52, BBU has a dividend in line with its industry peers.
With a Dividend Yield of 1.41, BBU pays less dividend than the S&P500 average, which is at 2.41.
| 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 paid a dividend for at least 10 years, which is 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.
BBU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-15.67%
EPS Next 2Y187.44%
EPS Next 3YN/A
NYSE:BBU (11/28/2025, 12:38:16 PM)
34.96
+1.44 (+4.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners32.8%
Inst Owner Change0.57%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap4.91B
Revenue(TTM)27.79B
Net Income(TTM)-134.00M
Analysts48.57
Price Target22.23 (-36.41%)
Short Float %0.16%
Short Ratio0.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.26
Dividend Growth(5Y)0.87%
DP-15.67%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)-0.22%
PT rev (3m)-0.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.17 | ||
| P/S | 0.18 | ||
| P/FCF | 3.66 | ||
| P/OCF | 1.43 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)-1.11
EYN/A
EPS(NY)3.13
Fwd EY8.96%
FCF(TTM)9.55
FCFY27.31%
OCF(TTM)24.53
OCFY70.16%
SpS198.02
BVpS16.77
TBVpS-212.43
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -5.69% | ||
| ROCE | 6.14% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 10.81% | ||
| OM | 14.64% | ||
| PM (TTM) | N/A | ||
| GM | 18.9% | ||
| FCFM | 4.82% |
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%
ROICexgc growth 3Y14.92%
ROICexgc 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 Turnover0.37
Health
| Industry Rank | Sector 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
WACC6.45%
ROIC/WACC0.75
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)-113.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-120.14%
EPS Next Y411.08%
EPS Next 2Y187.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-40.36%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-25.05%
Revenue Next Year-79.6%
Revenue Next 2Y-53.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.94%
EBIT growth 3Y22.63%
EBIT growth 5Y16.66%
EBIT Next Year-46.2%
EBIT Next 3Y-14.87%
EBIT Next 5YN/A
FCF growth 1Y385.71%
FCF growth 3Y36.79%
FCF growth 5Y-6.19%
OCF growth 1Y99.54%
OCF growth 3Y22.89%
OCF growth 5Y8.8%
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 for 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.
Can you provide the financial health for BBU stock?
The financial health rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 4 / 10.
Is the dividend of BROOKFIELD BUSINESS PT-UNIT sustainable?
The dividend rating of BROOKFIELD BUSINESS PT-UNIT (BBU) is 3 / 10 and the dividend payout ratio is -15.67%.