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BBUC

Brookfield Business NYSE:BBUC Stock Report

Last Price

US$22.33

Market Cap

US$1.6b

7D

-7.9%

1Y

n/a

Updated

27 Sep, 2022

Data

Company Financials
BBUC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health0/6
Dividends1/6

BBUC Stock Overview

Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil.

Brookfield Business Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brookfield Business
Historical stock prices
Current Share PriceUS$22.33
52 Week HighUS$34.92
52 Week LowUS$21.00
Beta0
1 Month Change-10.82%
3 Month Change-4.49%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-20.25%

Recent News & Updates

Aug 13
Brookfield Business' (NYSE:BBUC) Profits Appear To Have Quality Issues

Brookfield Business' (NYSE:BBUC) Profits Appear To Have Quality Issues

The stock price didn't jump after Brookfield Business Corporation ( NYSE:BBUC ) posted decent earnings last week. We...

Shareholder Returns

BBUCUS IndustrialsUS Market
7D-7.9%-3.7%-5.8%
1Yn/a-30.1%-22.1%

Return vs Industry: Insufficient data to determine how BBUC performed against the US Industrials industry.

Return vs Market: Insufficient data to determine how BBUC performed against the US Market.

Price Volatility

Is BBUC's price volatile compared to industry and market?
BBUC volatility
BBUC Average Weekly Movement6.4%
Industrials Industry Average Movement4.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: BBUC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BBUC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
202135,400Cyrus Madonhttps://www.brookfield.com

Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil. It operates through three segments: Business Services, Infrastructure Services, and Industrials. The company operates 42 hospitals; offers construction services for office, residential, hospitality and leisure, social infrastructure, retail, and mixed-use properties; and provides nuclear technology services, such as fuel, maintenance services, engineering solutions, instrumentation and control systems, and manufactured components for nuclear power plants.

Brookfield Business Fundamentals Summary

How do Brookfield Business's earnings and revenue compare to its market cap?
BBUC fundamental statistics
Market CapUS$1.63b
Earnings (TTM)US$662.00m
Revenue (TTM)US$9.40b

2.5x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBUC income statement (TTM)
RevenueUS$9.40b
Cost of RevenueUS$8.47b
Gross ProfitUS$923.00m
Other ExpensesUS$261.00m
EarningsUS$662.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.07
Gross Margin9.82%
Net Profit Margin7.04%
Debt/Equity Ratio592.6%

How did BBUC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

0.688%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BBUC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBUC?

Other financial metrics that can be useful for relative valuation.

BBUC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA11.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does BBUC's PE Ratio compare to its peers?

BBUC PE Ratio vs Peers
The above table shows the PE ratio for BBUC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.4x
SPLP Steel Partners Holdings
6.2xn/aUS$914.7m
BBU Brookfield Business Partners
45.9x124.9%US$4.1b
15x13.9%US$62.3b
HON Honeywell International
22.6x12.4%US$114.6b
BBUC Brookfield Business
2.5xn/aUS$1.6b

Price-To-Earnings vs Peers: BBUC is good value based on its Price-To-Earnings Ratio (2.5x) compared to the peer average (22.4x).


Price to Earnings Ratio vs Industry

How does BBUC's PE Ratio compare vs other companies in the Global Industrials Industry?

Price-To-Earnings vs Industry: BBUC is good value based on its Price-To-Earnings Ratio (2.5x) compared to the Global Industrials industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is BBUC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBUC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BBUC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of BBUC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBUC ($22.33) is trading below our estimate of fair value ($35.95)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Brookfield Business forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.5%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Brookfield Business has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Brookfield Business is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Brookfield Business competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Brookfield Business performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


71.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BBUC has high quality earnings.

Growing Profit Margin: BBUC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BBUC's earnings have grown significantly by 71.1% per year over the past 5 years.

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

Earnings vs Industry: BBUC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (-26%).


Return on Equity

High ROE: Whilst BBUC's Return on Equity (74.1%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Brookfield Business's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BBUC's short term assets ($5.3B) do not cover its short term liabilities ($5.7B).

Long Term Liabilities: BBUC's short term assets ($5.3B) do not cover its long term liabilities ($11.1B).


Debt to Equity History and Analysis

Debt Level: BBUC's net debt to equity ratio (530.4%) is considered high.

Reducing Debt: Insufficient data to determine if BBUC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BBUC's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: BBUC's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.12%

Current Dividend Yield

Dividend Yield vs Market

Brookfield Business Dividend Yield vs Market
How does Brookfield Business dividend yield compare to the market?
SegmentDividend Yield
Company (Brookfield Business)1.1%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Industrials)3.3%
Analyst forecast in 3 Years (Brookfield Business)n/a

Notable Dividend: BBUC's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: BBUC's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BBUC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BBUC's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (0.7%), BBUC's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: BBUC is paying a dividend but the company has no free cash flows.


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Management

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


CEO

Cyrus Madon (56 yo)

no data

Tenure

Mr. Cyrus Madon serves as Chief Executive Officer of Brookfield Business Partners Limited, General Partner of Brookfield Business Partners L.P. He serves as Senior Managing Partner of Brookfield Asset Mana...


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

What is the ownership structure of BBUC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders375,3710.5%
Institutions18,366,28325.2%
General Public54,215,16374.3%

Dilution of Shares: BBUC only recently listed within the past 12 months.


Top Shareholders

Top 25 shareholders own 23.68% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.25%
OMERS Administration Corp.
6,019,681$134.4m0%1.71%
3.84%
RBC Global Asset Management Inc.
2,798,142$62.5m-1.3%0.05%
1.55%
BlackRock, Inc.
1,130,464$25.2m0%no data
1.42%
CI Global Asset Management
1,038,626$23.2m-4%0.06%
1.31%
CIBC Asset Management Inc.
956,970$21.4m-13.9%0.06%
0.89%
1832 Asset Management L.P.
652,321$14.6m0%0.02%
0.83%
Partners Group Holding AG
602,885$13.5m1182.11%0.65%
0.72%
Beutel Goodman & Company Ltd.
528,645$11.8m-1.1%0.07%
0.67%
BMO Asset Management Corp.
485,789$10.8m21.43%0.01%
0.5%
Private Management Group, Inc.
367,470$8.2m0%0.4%
0.47%
RBC Dominion Securities Inc., Asset Management Arm
340,050$7.6m3.76%0.01%
0.42%
MultiConcept Fund Management S.A.
308,812$6.9m3.46%0.21%
0.36%
State Street Global Advisors, Inc.
263,660$5.9m0%no data
0.33%
Canadian Imperial Bank of Commerce, Asset Management Arm
244,197$5.5m-2.29%0.02%
0.32%
Millennium Management LLC
236,138$5.3m-27.59%0.01%
0.28%
Geode Capital Management, LLC
203,821$4.6m0%no data
0.26%
Tetrem Capital Management Ltd.
190,310$4.2m0%0.21%
0.21%
Manulife Asset Management
154,755$3.5m-53.76%no data
0.18%
NewGen Asset Management Limited
128,100$2.9m28.1%1.56%
0.16%
The Vanguard Group, Inc.
119,959$2.7m0%no data
0.16%
RBC Private Counsel (USA) Inc.
119,603$2.7m0.09%0.05%
0.15%
Jack Cockwell
112,902$2.5m0%no data
0.15%
James Flatt
112,201$2.5m0%no data
0.12%
QV Investors Inc.
83,925$1.9m0%0.08%
0.11%
Barrantagh Investment Management, Inc.
78,595$1.8m0%3.13%

Company Information

Brookfield Business Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Brookfield Business Corporation
  • Ticker: BBUC
  • Exchange: NYSE
  • Founded: 2021
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: US$1.629b
  • Shares outstanding: 72.96m
  • Website: https://www.brookfield.com

Number of Employees


Location

  • Brookfield Business Corporation
  • 250 Vesey Street
  • 15th Floor
  • New York
  • New York
  • 10281-1065
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBUCNYSE (New York Stock Exchange)YesClass A Subordinate Voting SharesUSUSDMar 2022
BBUCTSX (The Toronto Stock Exchange)YesClass A Subordinate Voting SharesCACADMar 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.