BROOKFIELD BUSINESS-CL A(TSX:BBUC) stock Fundamental Analysis

Fundamental Rating

Overall BBUC gets a fundamental rating of 2 out of 10. We evaluated BBUC against 4 industry peers in the Industrial Conglomerates industry. There are concerns on the financial health of BBUC while its profitability can be described as average. BBUC has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

In the past year BBUC was profitable.

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.

Each year in the past 5 years BBUC had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 0.13%, BBUC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.

The Return On Equity of BBUC (7.14%) is comparable to the rest of the industry.

BBUC has a Return On Invested Capital (3.96%) which is in line with its industry peers.

BBUC had an Average Return On Invested Capital over the past 3 years of 2.87%. This is in line with the industry average of 4.33%.

The 3 year average ROIC (2.87%) for BBUC is below the current ROIC(3.96%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	0.13%
ROE	7.14%
ROIC	3.96%

ROA(3y)2%

ROA(5y)0.85%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)2.87%

ROIC(5y)2.82%

1.3 Margins

With a Profit Margin value of 0.20%, BBUC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.

The Operating Margin of BBUC (6.39%) is comparable to the rest of the industry.

In the last couple of years the Operating Margin of BBUC has grown nicely.

BBUC has a Gross Margin (9.95%) which is in line with its industry peers.

In the last couple of years the Gross Margin of BBUC has grown nicely.

		Industry Rank	Sector Rank
OM	6.39%
PM (TTM)	0.2%
GM	9.95%

OM growth 3Y20.84%

OM growth 5Y19.47%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.68%

GM growth 5Y12.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

BBUC has about the same amout of shares outstanding than it did 1 year ago.

The debt/assets ratio for BBUC has been reduced compared to a year ago.

2.2 Solvency

BBUC has a Debt/Equity ratio of 22.23. This is a high value indicating a heavy dependency on external financing.

BBUC has a worse Debt to Equity ratio (22.23) than 75.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	22.23
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.5

WACC7.86%

2.3 Liquidity

BBUC has a Current Ratio of 0.60. 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 Current ratio (0.60) than 75.00% of its industry peers.

BBUC has a Quick Ratio of 0.60. This is a bad value and indicates that BBUC is not financially healthy enough and could expect problems in meeting its short term obligations.

Looking at the Quick ratio, with a value of 0.58, BBUC is doing worse than 75.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.6
Quick Ratio	0.58

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for BBUC have decreased strongly by -89.69% in the last year.

The Revenue has grown by 14.85% in the past year. This is quite good.

BBUC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.01% yearly.

EPS 1Y (TTM)-89.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-580.27%

Revenue 1Y (TTM)14.85%

Revenue growth 3Y-7.18%

Revenue growth 5Y2.01%

Sales Q2Q%-25.36%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 72.73, the valuation of BBUC can be described as expensive.

BBUC's Price/Earnings is on the same level as the industry average.

When comparing the Price/Earnings ratio of BBUC to the average of the S&P500 Index (29.63), we can say BBUC is valued expensively.

		Industry Rank	Sector Rank
PE	72.73
Fwd PE	N/A

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 Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	5.89

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 return of 0.98%, which is pretty low.

BBUC's Dividend Yield is comparable with the industry average which is at 3.68.

Compared to an average S&P500 Dividend Yield of 2.29, BBUC's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.98%

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

66.67% of the earnings are spent on dividend by BBUC. This is not a sustainable payout ratio.

DP66.67%

EPS Next 2YN/A

EPS Next 3YN/A

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BROOKFIELD BUSINESS-CL A

TSX:BBUC (2/21/2025, 7:00:00 PM)

37.82

-0.27 (-0.71%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryIndustrial Conglomerates

Earnings (Last)N/A N/A

Earnings (Next)N/A N/A

Inst Owners91.73%

Inst Owner ChangeN/A

Ins Owners0.15%

Ins Owner ChangeN/A

Market Cap2.76B

AnalystsN/A

Price TargetN/A

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.98%

Yearly Dividend0.25

Dividend Growth(5Y)N/A

DP66.67%

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 Rank	Sector Rank
PE	72.73
Fwd PE	N/A
P/S	0.14
P/FCF	N/A
P/OCF	N/A
P/B	5.14
P/tB	N/A
EV/EBITDA	5.89

EPS(TTM)0.52

EY1.37%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-7.66

FCFYN/A

OCF(TTM)-0.68

OCFYN/A

SpS266.54

BVpS7.36

TBVpS-228.53

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.13%
ROE	7.14%
ROCE	5.5%
ROIC	3.96%
ROICexc	4.14%
ROICexgc	20.24%
OM	6.39%
PM (TTM)	0.2%
GM	9.95%
FCFM	N/A

ROA(3y)2%

ROA(5y)0.85%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)2.87%

ROIC(5y)2.82%

ROICexc(3y)3.04%

ROICexc(5y)2.99%

ROICexgc(3y)11.8%

ROICexgc(5y)9.86%

ROCE(3y)4.28%

ROCE(5y)4.09%

ROICexcg growth 3Y33.25%

ROICexcg growth 5YN/A

ROICexc growth 3Y1.74%

ROICexc growth 5YN/A

OM growth 3Y20.84%

OM growth 5Y19.47%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.68%

GM growth 5Y12.68%

F-Score3

Asset Turnover0.66

Health

		Industry Rank	Sector Rank
Debt/Equity	22.23
Debt/FCF	N/A
Debt/EBITDA	5
Cap/Depr	44.47%
Cap/Sales	2.62%
Interest Coverage	1.05
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.6
Quick Ratio	0.58
Altman-Z	N/A

F-Score3

WACC7.86%

ROIC/WACC0.5

Cap/Depr(3y)85.36%

Cap/Depr(5y)83.18%

Cap/Sales(3y)7.33%

Cap/Sales(5y)6.21%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-89.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-580.27%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)14.85%

Revenue growth 3Y-7.18%

Revenue growth 5Y2.01%

Sales Q2Q%-25.36%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-13.89%

EBIT growth 3Y12.17%

EBIT growth 5Y21.87%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-15.25%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-114.46%

OCF growth 3Y-35.49%

OCF growth 5YN/A

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

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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