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BBU

Brookfield Business PartnersNYSE:BBU Stock Report

Last Price

US$44.41

Market Cap

US$6.6b

7D

-5.2%

1Y

17.7%

Updated

21 Jan, 2022

Data

Company Financials +
BBU fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health1/6
Dividends0/6

BBU Stock Overview

Brookfield Business Partners L.P. is a private equity firm specializes in acquisition.

Price History & Performance

Summary of all time highs, changes and price drops for Brookfield Business Partners
Historical stock prices
Current Share PriceUS$44.41
52 Week HighUS$51.98
52 Week LowUS$35.39
Beta1.49
1 Month Change-1.64%
3 Month Change-8.60%
1 Year Change17.71%
3 Year Change35.48%
5 Year Change78.07%
Change since IPO106.85%

Recent News & Updates

Sep 23

Brookfield Business Partners Stock Is The Strongest Buy In Brookfield

BAM and its BIP and BEP partnerships have impressive track records. BBU's unit price has lagged the others but its underlying value creation has been strong. BBU is deeply undervalued and has several catalysts to propel investor returns moving forward.

Shareholder Returns

BBUUS IndustrialsUS Market
7D-5.2%-2.3%-4.6%
1Y17.7%5.1%7.7%

Return vs Industry: BBU exceeded the US Industrials industry which returned 5.1% over the past year.

Return vs Market: BBU exceeded the US Market which returned 7.7% over the past year.

Price Volatility

Is BBU's price volatile compared to industry and market?
BBU volatility
BBU Average Weekly Movement3.9%
Industrials Industry Average Movement3.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: BBU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BBU's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a67,315Cyrus Madonhttps://bbu.brookfield.com

Brookfield Business Partners L.P. is a private equity firm specializes in acquisition. The firm typically invests in business services, construction, energy, and industrials sector. It prefers to take majority stake in companies.

Brookfield Business Partners Fundamentals Summary

How do Brookfield Business Partners's earnings and revenue compare to its market cap?
BBU fundamental statistics
Market CapUS$6.55b
Earnings (TTM)US$322.00m
Revenue (TTM)US$43.16b

20.4x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBU income statement (TTM)
RevenueUS$43.16b
Cost of RevenueUS$37.55b
Gross ProfitUS$5.61b
ExpensesUS$5.29b
EarningsUS$322.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 04, 2022

Earnings per share (EPS)2.18
Gross Margin12.99%
Net Profit Margin0.75%
Debt/Equity Ratio205.4%

How did BBU perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Brookfield Business Partners undervalued compared to its fair value and its price relative to the market?

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBU ($44.41) is trading below our estimate of fair value ($57.61)

Significantly Below Fair Value: BBU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BBU is good value based on its PE Ratio (20.4x) compared to the US Industrials industry average (33.9x).

PE vs Market: BBU is poor value based on its PE Ratio (20.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: BBU is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: BBU is good value based on its PB Ratio (3x) compared to the US Industrials industry average (3.1x).


Future Growth

How is Brookfield Business Partners forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBU's forecast earnings growth (61.8% per year) is above the savings rate (2%).

Earnings vs Market: BBU's earnings (61.8% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BBU's revenue (11.6% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: BBU's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BBU's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Brookfield Business Partners performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBU has a large one-off gain of $1.8B impacting its September 30 2021 financial results.

Growing Profit Margin: BBU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BBU's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: BBU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BBU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (10.1%).


Return on Equity

High ROE: Whilst BBU's Return on Equity (21.79%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Brookfield Business Partners's financial position?


Financial Position Analysis

Short Term Liabilities: BBU's short term assets ($14.2B) exceed its short term liabilities ($13.3B).

Long Term Liabilities: BBU's short term assets ($14.2B) do not cover its long term liabilities ($29.3B).


Debt to Equity History and Analysis

Debt Level: BBU's net debt to equity ratio (170.9%) is considered high.

Reducing Debt: BBU's debt to equity ratio has increased from 49.7% to 205.4% over the past 5 years.

Debt Coverage: BBU's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: BBU's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Brookfield Business Partners's current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBU's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: BBU's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: BBU is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BBU is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BBU is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BBU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Cyrus Madon (55 yo)

no data

Tenure

Mr. Cyrus Madon serves as Managing Partner of Brookfield Asset Management Inc. since 2005. He serves as a Managing Partner, CEO of Private Equity Group at the firm since April 2019. He serves as Managing P...


Leadership Team

Experienced Management: BBU's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: BBU's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brookfield Business Partners L.P.'s employee growth, exchange listings and data sources


Key Information

  • Name: Brookfield Business Partners L.P.
  • Ticker: BBU
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: US$6.553b
  • Shares outstanding: 147.55m
  • Website: https://bbu.brookfield.com

Number of Employees


Location

  • Brookfield Business Partners L.P.
  • 73 Front Street
  • Hamilton
  • HM 12
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 00:13
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.