Brookfield Business Corporation Fundamental Analysis (NYSE: BBUC)
Brookfield Business Corporation (NYSE: BBUC) shows weak financial fundamentals with a PE ratio of -4.16, profit margin of -2.03%, and ROE of -18.05%. The company generates $21.4B in annual revenue with weak year-over-year growth of 2.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BBUC's fundamental strength across five key dimensions:
Efficiency Score
WeakBBUC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBUC trades at attractive valuation levels.
Growth Score
ModerateBBUC shows steady but slowing expansion.
Financial Health Score
ModerateBBUC shows balanced financial health with some risks.
Profitability Score
WeakBBUC struggles to sustain strong margins.
Key Financial Metrics
Is BBUC Expensive or Cheap?
P/E Ratio
BBUC trades at -4.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BBUC's PEG of -0.10 indicates potential undervaluation.
Price to Book
The market values Brookfield Business Corporation at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.36 times EBITDA. This is generally considered low.
How Well Does BBUC Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Business Corporation keeps $-2.03 as profit after all expenses.
Operating Margin
Core operations generate 15.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-18.05 in profit for every $100 of shareholder equity.
ROA
Brookfield Business Corporation generates $-0.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Business Corporation produces operating cash flow of $2.68B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield Business Corporation generates weak or negative free cash flow of $398.88M, restricting financial flexibility.
FCF Per Share
Each share generates $1.94 in free cash annually.
FCF Yield
BBUC converts 6.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.18
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How BBUC Stacks Against Its Sector Peers
| Metric | BBUC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.16 | 29.88 | Better (Cheaper) |
| ROE | -18.05% | 1106.00% | Weak |
| Net Margin | -2.03% | -23408.00% (disorted) | Weak |
| Debt/Equity | 8.41 | 0.94 | Weak (High Leverage) |
| Current Ratio | 2.55 | 21.64 | Strong Liquidity |
| ROA | -0.56% | -1320888.00% (disorted) | Weak |
BBUC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Business Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
304.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
122.41%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-115.95%
Industry Style: Cyclical, Value, Infrastructure
Declining