Brookfield Business Partners L.P.
Brookfield Business Partners L.P. Fundamental Analysis
Brookfield Business Partners L.P. (BBU-UN.TO) shows weak financial fundamentals with a PE ratio of -203.58, profit margin of -0.05%, and ROE of -0.60%. The company generates $20.2B in annual revenue with weak year-over-year growth of -23.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 0.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BBU-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakBBU-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBU-UN.TO trades at attractive valuation levels.
Growth Score
WeakBBU-UN.TO faces weak or negative growth trends.
Financial Health Score
ModerateBBU-UN.TO shows balanced financial health with some risks.
Profitability Score
WeakBBU-UN.TO struggles to sustain strong margins.
Key Financial Metrics
Is BBU-UN.TO Expensive or Cheap?
P/E Ratio
BBU-UN.TO trades at -203.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BBU-UN.TO's PEG of -2.39 indicates potential undervaluation.
Price to Book
The market values Brookfield Business Partners L.P. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.28 times EBITDA. This is generally considered low.
How Well Does BBU-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Business Partners L.P. keeps $-0.05 as profit after all expenses.
Operating Margin
Core operations generate 15.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.60 in profit for every $100 of shareholder equity.
ROA
Brookfield Business Partners L.P. generates $-0.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Business Partners L.P. produces operating cash flow of $2.35B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield Business Partners L.P. produces free cash flow of $848.71M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.14 in free cash annually.
FCF Yield
BBU-UN.TO converts 41.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-203.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
19.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BBU-UN.TO Stacks Against Its Sector Peers
| Metric | BBU-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -203.58 | 25.96 | Better (Cheaper) |
| ROE | -0.60% | 1263.00% | Weak |
| Net Margin | -0.05% | -41827.00% (disorted) | Weak |
| Debt/Equity | 19.07 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.83 | 10.05 | Neutral |
| ROA | -0.02% | -1497918.00% (disorted) | Weak |
BBU-UN.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Business Partners L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.49%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-96.58%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
50.26%
Industry Style: Cyclical, Value, Infrastructure
High Growth