BROOKFIELD BUSINESS-CL A (BBUC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BBUC - CA11259V1067 - Common Stock
35.42 USD
-0.89 (-2.45%)
35.42 USD
0 (0%)
Overall BBUC gets a fundamental rating of 1 out of 10. We evaluated BBUC against 7 industry peers in the Industrial Conglomerates industry. BBUC has a bad profitability rating. Also its financial health evaluation is rather negative. BBUC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- BBUC had negative earnings in the past year.
- In the past year BBUC has reported a negative cash flow from operations.
- The reported net income has been mixed in the past 5 years: BBUC reported negative net income in multiple years.
- BBUC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -6.42%, BBUC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 2.26%, BBUC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- BBUC had an Average Return On Invested Capital over the past 3 years of 2.50%. This is significantly below the industry average of 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.42% | ||
| ROE | N/A | ||
| ROIC | 2.26% |
ROA(3y)0.38%
ROA(5y)0.07%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.5%
ROIC(5y)2.8%
1.3 Margins
- BBUC's Operating Margin of 4.45% is in line compared to the rest of the industry. BBUC outperforms 57.14% of its industry peers.
- BBUC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 8.47%, BBUC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- BBUC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.45% | ||
| PM (TTM) | N/A | ||
| GM | 8.47% |
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%
2. Health
2.1 Basic Checks
- BBUC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for BBUC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BBUC remains at a similar level compared to 5 years ago.
- BBUC has a worse debt/assets ratio than last year.
2.2 Solvency
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC8.2%
2.3 Liquidity
- BBUC has a Current Ratio of 0.50. 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 Current ratio of 0.50. This is in the lower half of the industry: BBUC underperforms 71.43% of its industry peers.
- BBUC has a Quick Ratio of 0.50. This is a bad value and indicates that BBUC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BBUC (0.50) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- The earnings per share for BBUC have decreased strongly by -4224.23% in the last year.
- Looking at the last year, BBUC shows a very negative growth in Revenue. The Revenue has decreased by -43.63% in the last year.
- BBUC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.68% yearly.
EPS 1Y (TTM)-4224.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-11.83%
Revenue 1Y (TTM)-43.63%
Revenue growth 3Y-5.25%
Revenue growth 5Y-3.68%
Sales Q2Q%-23.9%
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.
4. Valuation
4.1 Price/Earnings Ratio
- BBUC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BBUC is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.70%, BBUC is not a good candidate for dividend investing.
- BBUC's Dividend Yield is comparable with the industry average which is at 4.52.
- With a Dividend Yield of 0.70, BBUC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
5.3 Sustainability
- The earnings of BBUC are negative and hence is the payout ratio. BBUC will probably not be able to sustain this dividend level.
DP-1.49%
EPS Next 2YN/A
EPS Next 3YN/A
BROOKFIELD BUSINESS-CL A / BBUC FAQ
What is the ChartMill fundamental rating of BROOKFIELD BUSINESS-CL A (BBUC) stock?
ChartMill assigns a fundamental rating of 1 / 10 to BBUC.
What is the valuation status for BBUC stock?
ChartMill assigns a valuation rating of 1 / 10 to BROOKFIELD BUSINESS-CL A (BBUC). This can be considered as Overvalued.
How profitable is BROOKFIELD BUSINESS-CL A (BBUC) stock?
BROOKFIELD BUSINESS-CL A (BBUC) has a profitability rating of 1 / 10.
What is the financial health of BROOKFIELD BUSINESS-CL A (BBUC) stock?
The financial health rating of BROOKFIELD BUSINESS-CL A (BBUC) is 0 / 10.
Can you provide the dividend sustainability for BBUC stock?
The dividend rating of BROOKFIELD BUSINESS-CL A (BBUC) is 1 / 10 and the dividend payout ratio is -1.49%.