| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
BBU Stock Overview
Brookfield Business Partners L.P. is a private equity firm specializes in acquisition.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$44.41 |
| 52 Week High | US$51.98 |
| 52 Week Low | US$35.39 |
| Beta | 1.49 |
| 1 Month Change | -1.64% |
| 3 Month Change | -8.60% |
| 1 Year Change | 17.71% |
| 3 Year Change | 35.48% |
| 5 Year Change | 78.07% |
| Change since IPO | 106.85% |
Recent News & Updates
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
| BBU | US Industrials | US Market | |
|---|---|---|---|
| 7D | -5.2% | -2.3% | -4.6% |
| 1Y | 17.7% | 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
| BBU volatility | |
|---|---|
| BBU Average Weekly Movement | 3.9% |
| Industrials Industry Average Movement | 3.9% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 67,315 | Cyrus Madon | https://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
| BBU fundamental statistics | |
|---|---|
| Market Cap | US$6.55b |
| Earnings (TTM) | US$322.00m |
| Revenue (TTM) | US$43.16b |
20.4x
P/E Ratio0.2x
P/S RatioIs BBU overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BBU income statement (TTM) | |
|---|---|
| Revenue | US$43.16b |
| Cost of Revenue | US$37.55b |
| Gross Profit | US$5.61b |
| Expenses | US$5.29b |
| Earnings | US$322.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 04, 2022
| Earnings per share (EPS) | 2.18 |
| Gross Margin | 12.99% |
| Net Profit Margin | 0.75% |
| Debt/Equity Ratio | 205.4% |
How did BBU perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield11%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 00:13 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.