Brookfield Business Corp (NYSE: BBUC)

Sector: Financial Services Industry: Asset Management CIK: 0001871130
Market Cap 0.00
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) -4.44
Div Yield % 0.70
Rev 1y % (Qtr) -23.90
Total Debt (Qtr) 8.00 Bn
Debt/Equity (Qtr) -16.30
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About

Brookfield Business Corporation (BBUC) operates in the investment industry, specializing in providing end-to-end solutions to customers in the public and private sectors. The company's main business activities are spread across the United States, the United Kingdom, Australia, and Brazil. Brookfield Business Corporation generates revenue from various services, including cloud-based software as a service (SaaS) solutions, operation of private hospitals, private sanitation providers, and global construction services. The company's operations are...

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Investment thesis

Bull case

  • Healthy cash reserves of 629M provide 5.77x coverage of short-term debt 109M, demonstrating strong liquidity position and minimal refinancing risk.
  • Cash reserves of 629M exceed inventory value of 26M by 24.19x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (109M) barely covers its investment activities of (345M), with a coverage ratio of 0.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High receivables of 3.36B relative to inventory of 26M (129.15 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (355M) provides weak coverage of capital expenditures of 246M, with a -1.44 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (109M) provides minimal 1.16x coverage of tax expenses of (94M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (328M) show weak coverage of depreciation charges of 745M, with a -0.44 ratio indicating high capital intensity and potential reinvestment needs.

Geographical areas [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.94
EV to Cash from Ops. EV to Cash from Ops. 0.00 41.10
EV to Debt EV to Debt 0.00 15.28
EV to EBIT EV to EBIT 0.00 23.47
EV to EBITDA EV to EBITDA 0.00 47.80
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 38.62
EV to Market Cap EV to Market Cap 0.00 7.81
EV to Revenue EV to Revenue 0.00 27.38
Price to Book Value [P/B] Price to Book Value [P/B] 0.00 2.34
Price to Earnings [P/E] Price to Earnings [P/E] 0.00 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 4.66
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.25 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -5.16 49.83
Interest Coverage Int. cover (Qtr) -0.39 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.90 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.54 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 4.58 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -273.25 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.73 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -148.38 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -689.19 -163.05
EPS Growth (1y) % EPS Growth (1y) % 0.00 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 9.21 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.39 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.22
Cash Payout Ratio Cash Payout Ratio 0.00 0.36
Cash Ratio Cash Ratio (Qtr) 0.13 0.38
Current Ratio Curr Ratio (Qtr) 0.50 0.86
Debt to Equity Ratio Debt/Equity (Qtr) -16.30 0.70
Interest Cover Ratio Int Coverage (Qtr) -0.39 25.16
Times Interest Earned Times Interest Earned (Qtr) -0.39 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.40 -114.76
EBIT Margin % EBIT Margin % (Qtr) -4.25 -127.24
EBT Margin % EBT Margin % (Qtr) -15.14 -150.97
Gross Margin % Gross Margin % (Qtr) 8.50 67.88
Net Profit Margin % Net Margin % (Qtr) -13.90 -148.68