BROOKFIELD BUSINESS PT-UNIT (BBU) Stock Fundamental Analysis
NYSE:BBU - New York Stock Exchange, Inc. - BMG162341090 - Currency: USD
BBU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 8 industry peers in the Industrial Conglomerates industry. There are concerns on the financial health of BBU while its profitability can be described as average. BBU has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BBU had negative earnings in the past year.
BBU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BBU reported negative net income in multiple years.
Of the past 5 years BBU 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.75%, BBU is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Return On Equity of BBU (30.35%) is better than 87.50% of its industry peers.
With a decent Return On Invested Capital value of 4.91%, BBU is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBU is below the industry average of 9.46%.
The last Return On Invested Capital (4.91%) for BBU is above the 3 year average (4.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROIC | 4.91% |
ROA(3y)0.19%
ROA(5y)0.16%
ROE(3y)8.56%
ROE(5y)6.49%
ROIC(3y)4.47%
ROIC(5y)4.18%
1.3 Margins
Looking at the Profit Margin, with a value of 1.29%, BBU is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
BBU has a better Operating Margin (9.09%) than 62.50% of its industry peers.
BBU's Operating Margin has improved in the last couple of years.
BBU has a Gross Margin of 11.83%. This is in the lower half of the industry: BBU underperforms 62.50% of its industry peers.
BBU'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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BBU has about the same amout of shares outstanding than it did 1 year ago.
BBU has less shares outstanding than it did 5 years ago.
BBU has a better debt/assets ratio than last year.
2.2 Solvency
BBU has a debt to FCF ratio of 205.54. This is a negative value and a sign of low solvency as BBU would need 205.54 years to pay back of all of its debts.
BBU has a Debt to FCF ratio of 205.54. This is comparable to the rest of the industry: BBU outperforms 50.00% of its industry peers.
BBU has a Debt/Equity ratio of 20.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 20.33, BBU is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 20.33 | ||
| Debt/FCF | 205.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC6.15%
2.3 Liquidity
BBU has a Current Ratio of 1.17. This is a normal value and indicates that BBU is financially healthy and should not expect problems in meeting its short term obligations.
BBU has a Current ratio of 1.17. This is comparable to the rest of the industry: BBU outperforms 50.00% of its industry peers.
A Quick Ratio of 0.95 indicates that BBU may have some problems paying its short term obligations.
BBU has a Quick ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for BBU have decreased strongly by -107.67% in the last year.
The Revenue for BBU has decreased by -26.24% in the past year. This is quite bad
The Revenue has been decreasing by -1.15% on average over the past years.
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. In the last year negative earnings were reported.
BBU is valuated quite expensively with a Price/Forward Earnings ratio of 34.78.
Based on the Price/Forward Earnings ratio, BBU is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.06. BBU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.78 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than BBU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBU indicates a somewhat cheap valuation: BBU is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.35 | ||
| 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.
The decent profitability rating of BBU 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 has a reasonable but not impressive dividend return.
BBU's Dividend Yield is a higher than the industry average which is at 5.34.
BBU'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 decreases each year by -45.77%.
BBU has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BBU decreased recently.
Dividend Growth(5Y)-45.77%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
3.16% of the earnings are spent on dividend by BBU. This is a low number and sustainable payout ratio.
DP3.16%
EPS Next 2YN/A
EPS Next 3YN/A
NYSE:BBU (2/21/2025, 12:57:16 PM)
24.94
-0.43 (-1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryIndustrial Conglomerates
Earnings (Last)
Earnings (Next)
Inst Owners78.17%
Inst Owner Change0.36%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.59B
Analysts80
Price Target22.42 (-10.1%)
Short Float %0.07%
Short Ratio1.74
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 Years1
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 | 34.78 | ||
| P/S | 0.08 | ||
| P/FCF | 17.35 | ||
| P/OCF | 1.31 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)-0.5
EYN/A
EPS(NY)0.72
Fwd EY2.88%
FCF(TTM)1.44
FCFY5.76%
OCF(TTM)19.08
OCFY76.52%
SpS323.62
BVpS13.75
TBVpS-214.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 30.35% | ||
| ROCE | 6.22% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 10.61% | ||
| 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)4.47%
ROIC(5y)4.18%
ROICexc(3y)5.37%
ROICexc(5y)4.86%
ROICexgc(3y)15.38%
ROICexgc(5y)12.27%
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
WACC6.15%
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)-107.67%
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-49.29%
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