BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - Toronto Stock Exchange - BMG162341090 - Currency: CAD
BBU-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 4 industry peers in the Industrial Conglomerates industry. BBU-UN has an excellent profitability rating, but there are concerns on its financial health. BBU-UN 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-UN had negative earnings in the past year.
In the past year BBU-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BBU-UN reported negative net income in multiple years.
BBU-UN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.75%, BBU-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
BBU-UN's Return On Equity of 30.35% is amongst the best of the industry. BBU-UN outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.48%, BBU-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBU-UN is in line with the industry average of 3.28%.
The 3 year average ROIC (4.08%) for BBU-UN is below the current ROIC(4.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROIC | 4.48% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.08%
ROIC(5y)3.81%
1.3 Margins
BBU-UN has a better Profit Margin (1.29%) than 75.00% of its industry peers.
BBU-UN's Operating Margin of 9.09% is amongst the best of the industry. BBU-UN outperforms 100.00% of its industry peers.
BBU-UN's Operating Margin has improved in the last couple of years.
BBU-UN has a Gross Margin of 11.83%. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
BBU-UN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 1.29% | ||
| GM | 11.83% |
OM growth 3Y29.95%
OM growth 5Y18.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
2. Health
2.1 Basic Checks
BBU-UN 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 BBU-UN remains at a similar level compared to 1 year ago.
The number of shares outstanding for BBU-UN has been reduced compared to 5 years ago.
BBU-UN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BBU-UN is 205.54, which is on the high side as it means it would take BBU-UN, 205.54 years of fcf income to pay off all of its debts.
BBU-UN's Debt to FCF ratio of 205.54 is fine compared to the rest of the industry. BBU-UN outperforms 75.00% of its industry peers.
BBU-UN has a Debt/Equity ratio of 20.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 20.33, BBU-UN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC5.58%
2.3 Liquidity
BBU-UN has a Current Ratio of 1.17. This is a normal value and indicates that BBU-UN is financially healthy and should not expect problems in meeting its short term obligations.
BBU-UN's Current ratio of 1.17 is fine compared to the rest of the industry. BBU-UN outperforms 75.00% of its industry peers.
A Quick Ratio of 0.95 indicates that BBU-UN may have some problems paying its short term obligations.
BBU-UN's Quick ratio of 0.95 is in line compared to the rest of the industry. BBU-UN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for BBU-UN have decreased strongly by -107.66% in the last year.
Looking at the last year, BBU-UN shows a very negative growth in Revenue. The Revenue has decreased by -26.24% in the last year.
Measured over the past years, BBU-UN shows a decrease in Revenue. The Revenue has been decreasing by -1.15% on average per year.
EPS 1Y (TTM)-107.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-130.75%
Revenue 1Y (TTM)-26.24%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.6%
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 Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-81.22%
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
The Price/Earnings Ratio is negative for BBU-UN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 54.43 indicates a quite expensive valuation of BBU-UN.
75.00% of the companies in the same industry are more expensive than BBU-UN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, BBU-UN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 54.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBU-UN indicates a rather cheap valuation: BBU-UN is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BBU-UN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
The 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-UN may justify a higher PE ratio.
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 Yield of 1.41%, BBU-UN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, BBU-UN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.41, BBU-UN pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of BBU-UN decreases each year by -45.77%.
BBU-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
As BBU-UN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-45.77%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
BBU-UN pays out 3.16% of its income as dividend. This is a sustainable payout ratio.
DP3.16%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:BBU-UN (4/30/2025, 7:00:00 PM)
30.41
-0.23 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners44.81%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.29B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.35
Dividend Growth(5Y)-45.77%
DP3.16%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)440.59%
Min EPS beat(2)-395.05%
Max EPS beat(2)1276.24%
EPS beat(4)3
Avg EPS beat(4)249.23%
Min EPS beat(4)-395.05%
Max EPS beat(4)1276.24%
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)0
Avg Revenue beat(2)-36.92%
Min Revenue beat(2)-47.12%
Max Revenue beat(2)-26.72%
Revenue beat(4)0
Avg Revenue beat(4)-29.8%
Min Revenue beat(4)-47.12%
Max Revenue beat(4)-19.79%
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%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-73.55%
Revenue NY rev (3m)-84.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 54.43 | ||
| P/S | 0.07 | ||
| P/FCF | 14.98 | ||
| P/OCF | 1.13 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)-0.69
EYN/A
EPS(NY)0.56
Fwd EY1.84%
FCF(TTM)2.03
FCFY6.68%
OCF(TTM)26.96
OCFY88.64%
SpS457.1
BVpS19.42
TBVpS-303.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROCE | 6.22% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 9.67% | ||
| OM | 9.09% | ||
| PM (TTM) | 1.29% | ||
| GM | 11.83% | ||
| FCFM | 0.44% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.08%
ROIC(5y)3.81%
ROICexc(3y)4.89%
ROICexc(5y)4.43%
ROICexgc(3y)14.02%
ROICexgc(5y)11.18%
ROCE(3y)5.79%
ROCE(5y)5.39%
ROICexcg growth 3Y53.08%
ROICexcg growth 5Y30.41%
ROICexc growth 3Y27.75%
ROICexc growth 5Y14.56%
OM growth 3Y29.95%
OM growth 5Y18.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.78%
GM growth 5Y4.96%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 76.63% | ||
| Cap/Sales | 5.45% | ||
| Interest Coverage | 1.24 | ||
| Cash Conversion | 36.39% | ||
| Profit Quality | 34.44% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | N/A |
F-Score6
WACC5.58%
ROIC/WACC0.8
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-130.75%
EPS Next Y180.8%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-26.24%
Revenue growth 3Y-4.47%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.6%
Revenue Next Year-81.22%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.48%
EBIT growth 3Y24.15%
EBIT growth 5Y17.52%
EBIT Next Year-61.05%
EBIT Next 3Y-24.52%
EBIT Next 5YN/A
FCF growth 1Y144.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.3%
OCF growth 3YN/A
OCF growth 5YN/A