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BROOKFIELD BUSINESS-CL A (BBUC) Stock Fundamental Analysis

NYSE:BBUC - New York Stock Exchange, Inc. - CA11259V1067 - Common Stock

23.33  -0.25 (-1.06%)

After market: 23.33 0 (0%)

Fundamental Rating

2

BBUC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 8 industry peers in the Industrial Conglomerates industry. BBUC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BBUC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

BBUC had positive 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.
In the past 5 years BBUC always reported a positive cash flow from operatings.
BBUC Yearly Net Income VS EBIT VS OCF VS FCFBBUC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 500M

1.2 Ratios

With a Return On Assets value of 0.13%, BBUC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BBUC has a Return On Equity of 7.14%. This is comparable to the rest of the industry: BBUC outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.34%, BBUC is in line with its industry, outperforming 50.00% of the companies in the same industry.
BBUC had an Average Return On Invested Capital over the past 3 years of 3.15%. This is significantly below the industry average of 9.51%.
The last Return On Invested Capital (4.34%) for BBUC is above the 3 year average (3.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.13%
ROE 7.14%
ROIC 4.34%
ROA(3y)2%
ROA(5y)0.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.15%
ROIC(5y)3.09%
BBUC Yearly ROA, ROE, ROICBBUC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 50 100 150 200 250

1.3 Margins

Looking at the Profit Margin, with a value of 0.20%, BBUC is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 6.39%, BBUC is in line with its industry, outperforming 50.00% of the companies in the same industry.
BBUC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 9.95%, BBUC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BBUC has grown nicely.
Industry RankSector 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%
BBUC Yearly Profit, Operating, Gross MarginsBBUC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 5 10

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BBUC is destroying value.
Compared to 1 year ago, BBUC has about the same amount of shares outstanding.
BBUC has a better debt/assets ratio than last year.
BBUC Yearly Shares OutstandingBBUC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M
BBUC Yearly Total Debt VS Total AssetsBBUC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

A Debt/Equity ratio of 22.23 is on the high side and indicates that BBUC has dependencies on debt financing.
With a Debt to Equity ratio value of 22.23, BBUC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 22.23
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.53
WACC8.2%
BBUC Yearly LT Debt VS Equity VS FCFBBUC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

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's Current ratio of 0.60 is on the low side compared to the rest of the industry. BBUC is outperformed by 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.
The Quick ratio of BBUC (0.58) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.58
BBUC Yearly Current Assets VS Current LiabilitesBBUC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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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.
BBUC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.85%.
Measured over the past years, BBUC shows a small growth in Revenue. The Revenue has been growing by 2.01% on average per year.
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.
BBUC Yearly Revenue VS EstimatesBBUC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B
BBUC Yearly EPS VS EstimatesBBUC Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 63.05 indicates a quite expensive valuation of BBUC.
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 (27.96), we can say BBUC is valued expensively.
Industry RankSector Rank
PE 63.05
Fwd PE N/A
BBUC Price Earnings VS Forward Price EarningsBBUC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBUC indicates a somewhat cheap valuation: BBUC is cheaper than 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.74
BBUC Per share dataBBUC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 -100

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

With a yearly dividend of 1.00%, BBUC is not a good candidate for dividend investing.
BBUC's Dividend Yield is comparable with the industry average which is at 5.52.
With a Dividend Yield of 1.00, BBUC pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 1%

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
BBUC Yearly Dividends per shareBBUC Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.05 0.1 0.15 0.2

5.3 Sustainability

BBUC pays out 66.67% of its income as dividend. This is not a sustainable payout ratio.
DP66.67%
EPS Next 2YN/A
EPS Next 3YN/A
BBUC Yearly Income VS Free CF VS DividendBBUC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 0 500M
BBUC Dividend Payout.BBUC Dividend Payout, showing the Payout Ratio.BBUC Dividend Payout.PayoutRetained Earnings

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BROOKFIELD BUSINESS-CL A

NYSE:BBUC (1/17/2025, 8:04:01 PM)

After market: 23.33 0 (0%)

23.33

-0.25 (-1.06%)

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 Cap1.70B
AnalystsN/A
Price TargetN/A
Short Float %0.38%
Short Ratio5.42
Dividend
Industry RankSector Rank
Dividend Yield 1%
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP66.67%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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 RankSector Rank
PE 63.05
Fwd PE N/A
P/S 0.12
P/FCF N/A
P/OCF N/A
P/B 4.5
P/tB N/A
EV/EBITDA 5.74
EPS(TTM)0.37
EY1.59%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-5.39
FCFYN/A
OCF(TTM)-0.48
OCFYN/A
SpS187.55
BVpS5.18
TBVpS-160.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.13%
ROE 7.14%
ROCE 5.5%
ROIC 4.34%
ROICexc 4.54%
ROICexgc 22.21%
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)3.15%
ROIC(5y)3.09%
ROICexc(3y)3.33%
ROICexc(5y)3.28%
ROICexgc(3y)12.95%
ROICexgc(5y)10.81%
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 RankSector 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
WACC8.2%
ROIC/WACC0.53
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