Brookfield Business Partners
Market Cap
US$6.5b
Last Updated
2021/02/25 01:22 UTC
Data Sources
Company Financials +
Executive Summary
Brookfield Business Partners L.P. is a private equity firm specializes in acquisition. More Details
Rewards
Risk Analysis
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
| BBU | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 4.9% | -1.4% |
| 30 Day | 18.6% | 7.8% | 1.6% |
| 90 Day | 24.9% | 25.0% | 7.3% |
| 1 Year | 4.1%3.2% | 52.9%52.0% | 40.2%37.1% |
| 3 Year | 29.8%27.2% | 50.8%47.8% | 62.5%52.1% |
| 5 Year | n/a | 114.8%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
2 years ago | Simply Wall St
Is Brookfield Business Partners LP (NYSE:BBU) A Financially Sound Company?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer of Brookfield Business Partners Limited | no data | no data | no data | |
| Managing Partner & CFO of Brookfield Business Partners Limited | 1.42yrs | no data | no data | |
| Managing Partner & COO | no data | no data | no data | |
| Managing Partner of Private Equity & Chief Investment Officer | 3.08yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Managing Partner | no data | no data | no data | |
| Vice President of Communications | no data | no data | no data | |
| Managing Partner of Private Equity | 2.42yrs | no data | no data | |
| Managing Partner of Private Equity | 3.08yrs | no data | no data | |
| Managing Partner & Vice Chairman of Private Equity | 3.83yrs | no data | no data | |
| Managing Partner of Private Equity | no data | no data | no data | |
| Managing Partner of Private Equity | 3.83yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Lead Independent Director of Brookfield Business Partners Limited | no data | no data | 0.013% $ 816.5k | |
| Non Independent Board Chair of Brookfield Business Partners Limited | no data | no data | no data | |
| Non Independent Director of Brookfield Business Partners Limited | 4.67yrs | no data | 0.0090% $ 585.6k | |
| Independent Director of Brookfield Business Partners Limited | 4.67yrs | no data | 0.0060% $ 391.7k | |
| Independent Director of Brookfield Business Partners Limited | 4.67yrs | no data | no data | |
| Independent Director | 0.17yr | no data | no data | |
| Independent Director of Brookfield Business Partners Limited | 4.67yrs | no data | no data | |
| Independent Director of Brookfield Business Partners Limited | 3.08yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BBU.UN | TSX (The Toronto Stock Exchange) | Yes | LP Units | CA | CAD | Jun 2016 |
| BBU | NYSE (New York Stock Exchange) | Yes | LP Units | US | USD | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 01:22 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| 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.