BROOKFIELD BUSINESS PT-UNIT (BBU-UN.CA) Stock Fundamental Analysis
TSX:BBU-UN - Toronto Stock Exchange - BMG162341090 - Currency: CAD
Overall BBU-UN gets a fundamental rating of 4 out of 10. We evaluated BBU-UN against 4 industry peers in the Industrial Conglomerates industry. There are concerns on the financial health of BBU-UN while its profitability can be described as average. 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.
BBU-UN had a positive operating cash flow in the past year.
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
BBU-UN's Return On Assets of 0.75% is in line compared to the rest of the industry. BBU-UN outperforms 50.00% of its industry peers.
With an excellent Return On Equity value of 30.35%, BBU-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of BBU-UN (4.48%) is better than 75.00% of its industry peers.
BBU-UN had an Average Return On Invested Capital over the past 3 years of 4.08%. This is in line with the industry average of 4.33%.
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
With a decent Profit Margin value of 1.29%, BBU-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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.
BBU-UN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BBU-UN has an improved debt to assets ratio.
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 has a Debt to FCF ratio of 205.54. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 20.33 is on the high side and indicates that BBU-UN has dependencies on debt financing.
BBU-UN has a Debt to Equity ratio (20.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC5.68%
2.3 Liquidity
A Current Ratio of 1.17 indicates that BBU-UN should not have too much problems paying its short term obligations.
BBU-UN has a Current ratio (1.17) which is in line with its industry peers.
A Quick Ratio of 0.95 indicates that BBU-UN may have some problems paying its short term obligations.
BBU-UN has a Quick ratio of 0.95. This is in the better half of the industry: BBU-UN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
BBU-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.67%.
The Revenue for BBU-UN has decreased by -26.24% in the past year. This is quite bad
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)-107.67%
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 Y243.42%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year23.21%
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 34.36 indicates a quite expensive valuation of BBU-UN.
Based on the Price/Forward Earnings ratio, BBU-UN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BBU-UN to the average of the S&P500 Index (22.68), we can say BBU-UN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.36 |
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 a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 5.53 |
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.
BBU-UN has a very decent profitability rating, which 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
BBU-UN has a Yearly Dividend Yield of 1.41%.
BBU-UN's Dividend Yield is a higher than the industry average which is at 3.68.
BBU-UN's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| 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
3.16% of the earnings are spent on dividend by BBU-UN. This is a low number and sustainable payout ratio.
DP3.16%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:BBU-UN (2/21/2025, 7:00:00 PM)
35.02
-0.97 (-2.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners78.17%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.04B
Analysts80
Price Target30.6 (-12.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.26
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)109.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-44.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.36 | ||
| P/S | 0.08 | ||
| P/FCF | 17.14 | ||
| P/OCF | 1.29 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)-0.71
EYN/A
EPS(NY)1.02
Fwd EY2.91%
FCF(TTM)2.04
FCFY5.83%
OCF(TTM)27.12
OCFY77.45%
SpS459.91
BVpS19.54
TBVpS-304.92
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
WACC5.68%
ROIC/WACC0.79
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)-107.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-130.75%
EPS Next Y243.42%
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 Year23.21%
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-64.32%
EBIT Next 3YN/A
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