NYSE:BBU

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Brookfield Business Partners

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Brookfield Business Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

1.4%

BBU

4.9%

US Construction

-1.4%

US Market


1 Year Return

3.2%

BBU

52.0%

US Construction

37.1%

US Market

Return vs Industry: BBU underperformed the US Construction industry which returned 44.3% over the past year.

Return vs Market: BBU underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

BBUIndustryMarket
7 Day1.4%4.9%-1.4%
30 Day18.6%7.8%1.6%
90 Day24.9%25.0%7.3%
1 Year4.1%3.2%52.9%52.0%40.2%37.1%
3 Year29.8%27.2%50.8%47.8%62.5%52.1%
5 Yearn/a114.8%107.0%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Brookfield Business Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBU ($43.68) is trading below our estimate of fair value ($133.37)

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


Price To Earnings Ratio

PE vs Industry: BBU is unprofitable, so we can't compare its PE Ratio to the US Construction industry average.

PE vs Market: BBU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BBU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BBU is overvalued based on its PB Ratio (3.4x) compared to the US Construction industry average (2.5x).


Next Steps

Future Growth

How is Brookfield Business Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: BBU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BBU's is expected to become profitable in the next 3 years.

Revenue vs Market: BBU's revenue (13.6% per year) is forecast to grow faster than the US market (10.5% per year).

High Growth Revenue: BBU's revenue (13.6% 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


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

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

-40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBU is currently unprofitable.

Growing Profit Margin: BBU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BBU is unprofitable, and losses have increased over the past 5 years at a rate of 40.6% per year.

Accelerating Growth: Unable to compare BBU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BBU is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (13.2%).


Return on Equity

High ROE: BBU has a negative Return on Equity (5.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is Brookfield Business Partners's financial position?


Financial Position Analysis

Short Term Liabilities: BBU's short term assets ($13.0B) do not cover its short term liabilities ($17.9B).

Long Term Liabilities: BBU's short term assets ($13.0B) do not cover its long term liabilities ($25.5B).


Debt to Equity History and Analysis

Debt Level: BBU's debt to equity ratio (197.5%) is considered high.

Reducing Debt: BBU's debt to equity ratio has increased from 67.3% to 197.5% over the past 5 years.

Debt Coverage: BBU's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: BBU is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBU's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: BBU's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.75%).


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?

3.1yrs

Average management tenure


CEO

Cyrus Madon (54 yo)

no data

Tenure

Mr. Cyrus Madon served as Managing Partner and Head of Brookfield’s Private Equity Group at Brookfield Asset Management Inc. and served as its Senior Managing Partner since 2005 until April 2019. He serves...


Leadership Team

NamePositionTenureCompensationOwnership
Cyrus Madon
Chief Executive Officer of Brookfield Business Partners Limitedno datano datano data
Jaspreet Dehl
Managing Partner & CFO of Brookfield Business Partners Limited1.42yrsno datano data
J. Gordon
Managing Partner & COOno datano datano data
David Aiken
Managing Partner of Private Equity & Chief Investment Officer3.08yrsno datano data
Alan Fleming
Vice President of Investor Relationsno datano datano data
Justin Beber
Managing Partnerno datano datano data
Claire Holland
Vice President of Communicationsno datano datano data
Craig Laurie
Managing Partner of Private Equity2.42yrsno datano data
Denis Turcotte
Managing Partner of Private Equity3.08yrsno datano data
Ron Bloom
Managing Partner & Vice Chairman of Private Equity3.83yrsno datano data
Len Chersky
Managing Partner of Private Equityno datano datano data
David Levenson
Managing Partner of Private Equity3.83yrsno datano data

3.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: BBU's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Lacey
Lead Independent Director of Brookfield Business Partners Limitedno datano data0.013%
$ 816.5k
Jeffrey Blidner
Non Independent Board Chair of Brookfield Business Partners Limitedno datano datano data
Stephen Girsky
Non Independent Director of Brookfield Business Partners Limited4.67yrsno data0.0090%
$ 585.6k
David Hamill
Independent Director of Brookfield Business Partners Limited4.67yrsno data0.0060%
$ 391.7k
Patricia Zuccotti
Independent Director of Brookfield Business Partners Limited4.67yrsno datano data
Anne Herkes
Independent Director0.17yrno datano data
Donald MacKenzie
Independent Director of Brookfield Business Partners Limited4.67yrsno datano data
David Court
Independent Director of Brookfield Business Partners Limited3.08yrsno datano data

4.7yrs

Average Tenure

63yo

Average Age

Experienced Board: BBU's board of directors are considered experienced (4.7 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.


Recent Insider Transactions

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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brookfield Business Partners L.P.
  • Ticker: BBU
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$6.485b
  • Shares outstanding: 148.47m
  • Website: https://bbu.brookfield.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBU.UNTSX (The Toronto Stock Exchange)YesLP UnitsCACADJun 2016
BBUNYSE (New York Stock Exchange)YesLP UnitsUSUSDJun 2016

Biography

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 majo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 01:22
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.