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BROOKFIELD BUSINESS-CL A (BBUC.CA) Stock Fundamental Analysis

TSX:BBUC - Toronto Stock Exchange - CA11259V1067 - Common Stock - Currency: CAD

35.6  -0.56 (-1.55%)

Fundamental Rating

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BBUC gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 4 industry peers in the Industrial Conglomerates industry. Both the profitability and financial health of BBUC have multiple concerns. BBUC has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year BBUC has reported negative net income.
BBUC had a negative operating cash flow in the past year.
In multiple years BBUC reported negative net income over the last 5 years.
BBUC had a positive operating cash flow in 4 of the past 5 years.
BBUC.CA Yearly Net Income VS EBIT VS OCF VS FCFBBUC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

1.2 Ratios

BBUC's Return On Assets of -4.65% is in line compared to the rest of the industry. BBUC outperforms 50.00% of its industry peers.
BBUC has a Return On Invested Capital of 1.58%. This is comparable to the rest of the industry: BBUC outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBUC is in line with the industry average of 3.28%.
Industry RankSector Rank
ROA -4.65%
ROE N/A
ROIC 1.58%
ROA(3y)0.38%
ROA(5y)0.07%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.28%
ROIC(5y)2.55%
BBUC.CA Yearly ROA, ROE, ROICBBUC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

BBUC's Operating Margin of 3.83% is in line compared to the rest of the industry. BBUC outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of BBUC has declined.
The Gross Margin of BBUC (7.80%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BBUC has declined.
Industry RankSector Rank
OM 3.83%
PM (TTM) N/A
GM 7.8%
OM growth 3Y-13.28%
OM growth 5Y-5.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.15%
GM growth 5Y-7.17%
BBUC.CA Yearly Profit, Operating, Gross MarginsBBUC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BBUC is destroying value.
The number of shares outstanding for BBUC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BBUC has about the same amount of shares outstanding.
The debt/assets ratio for BBUC is higher compared to a year ago.
BBUC.CA Yearly Shares OutstandingBBUC.CA Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M
BBUC.CA Yearly Total Debt VS Total AssetsBBUC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.22
WACC7.3%
BBUC.CA Yearly LT Debt VS Equity VS FCFBBUC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.61 indicates that BBUC may have some problems paying its short term obligations.
With a Current ratio value of 0.61, BBUC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
BBUC has a Quick Ratio of 0.61. This is a bad value and indicates that BBUC is not financially healthy enough and could expect problems in meeting its short term obligations.
BBUC has a worse Quick ratio (0.60) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.6
BBUC.CA Yearly Current Assets VS Current LiabilitesBBUC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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3. Growth

3.1 Past

BBUC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -252.15%.
Looking at the last year, BBUC shows a very negative growth in Revenue. The Revenue has decreased by -50.17% in the last year.
The Revenue has been decreasing by -3.68% on average over the past years.
EPS 1Y (TTM)-252.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.34%
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y-5.25%
Revenue growth 5Y-3.68%
Sales Q2Q%-71.25%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
BBUC.CA Yearly Revenue VS EstimatesBBUC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for BBUC. In the last year negative earnings were reported.
Industry RankSector Rank
PE N/A
Fwd PE N/A
BBUC.CA Price Earnings VS Forward Price EarningsBBUC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BBUC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.78
BBUC.CA Per share dataBBUC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100 -200

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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5. Dividend

5.1 Amount

BBUC has a Yearly Dividend Yield of 1.04%.
BBUC's Dividend Yield is comparable with the industry average which is at 3.69.
With a Dividend Yield of 1.04, BBUC pays less dividend than the S&P500 average, which is at 2.44.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

BBUC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
BBUC.CA Yearly Dividends per shareBBUC.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

BBUC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.03%
EPS Next 2YN/A
EPS Next 3YN/A
BBUC.CA Yearly Income VS Free CF VS DividendBBUC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

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BROOKFIELD BUSINESS-CL A

TSX:BBUC (5/1/2025, 7:00:00 PM)

35.6

-0.56 (-1.55%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners27.23%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap2.55B
AnalystsN/A
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-2.03%
Div Incr Years0
Div Non Decr Years2
Ex-Date02-28 2025-02-28 (0.0625)
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.22
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 8.78
EPS(TTM)-16.83
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-7.87
FCFYN/A
OCF(TTM)-2.14
OCFYN/A
SpS158.34
BVpS-1.14
TBVpS-212.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.65%
ROE N/A
ROCE 2.2%
ROIC 1.58%
ROICexc 1.7%
ROICexgc 9.72%
OM 3.83%
PM (TTM) N/A
GM 7.8%
FCFM N/A
ROA(3y)0.38%
ROA(5y)0.07%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.28%
ROIC(5y)2.55%
ROICexc(3y)2.4%
ROICexc(5y)2.71%
ROICexgc(3y)12.22%
ROICexgc(5y)10.31%
ROCE(3y)3.18%
ROCE(5y)3.72%
ROICexcg growth 3Y4.72%
ROICexcg growth 5Y5.53%
ROICexc growth 3Y-22.24%
ROICexc growth 5Y-11.34%
OM growth 3Y-13.28%
OM growth 5Y-5.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.15%
GM growth 5Y-7.17%
F-Score2
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 7.87
Cap/Depr 38.08%
Cap/Sales 3.62%
Interest Coverage 0.46
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.6
Altman-Z N/A
F-Score2
WACC7.3%
ROIC/WACC0.22
Cap/Depr(3y)57.81%
Cap/Depr(5y)75.14%
Cap/Sales(3y)6.02%
Cap/Sales(5y)6.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-252.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176.34%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y-5.25%
Revenue growth 5Y-3.68%
Sales Q2Q%-71.25%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-76.6%
EBIT growth 3Y-17.83%
EBIT growth 5Y-9.21%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-180.43%
OCF growth 3YN/A
OCF growth 5YN/A