Brookfield Business Corp. Class A (BBUC) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: 0.84%
• Average Volume (3M): 34.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: -11.38%
• EPS Growth: -259.72%
• Country: CA
• Employees: 25,000
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 70,660,290
• 10 Day Avg. Volume: 26,399
• 30 Day Avg. Volume: 34,313
• PEG Ratio: 0.03
• Price to Book (P/B): -30.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.36
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 12.24
• Enterprise Value/Ebitda: 1.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: C$40.00 ▲(1.32%Upside)

The company's financial performance is a significant concern with declining revenues and high leverage. However, technical indicators suggest some positive momentum, and recent corporate actions may boost investor confidence. Valuation remains a concern due to negative earnings.

Brookfield Business Corp. Class A Business Overview & Revenue Model

Company Description

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. It also engages in the collection, treatment, and distribution of water and wastewater to the residential and governmental customers. The company was incorporated in 2021 and is headquartered in New York, New York.

How the Company Makes Money

Brookfield Business Corp. makes money primarily through the acquisition and management of high-quality businesses. Its revenue model is based on generating cash flows from its portfolio of businesses across various sectors. Key revenue streams include fees from asset management, income from business operations, and capital appreciation from strategic investments. The company benefits from its extensive industry expertise, operational improvements, and synergies across its global platform. Partnerships with institutional investors and access to Brookfield Asset Management’s global network further contribute to its earnings by enabling large-scale investments and access to capital.

Brookfield Business Corp. Class A Financial Statement Overview

Summary

The company faces significant financial challenges, including declining revenues, negative profitability, and high leverage. Negative equity and poor cash flow generation further highlight financial distress and potential risks.

Income Statement

The income statement reveals a decline in revenue from previous years, with a negative net profit margin and gross profit margin reduction. The EBIT margin is zero, and EBITDA margin has decreased. This indicates a challenging year with profitability concerns and potential operational inefficiencies.

Balance Sheet

The balance sheet shows negative stockholders' equity, indicating financial distress. A high debt-to-equity ratio and low equity ratio suggest financial instability and high leverage, posing significant risks to financial health.

Cash Flow

Cash flow analysis indicates negative free cash flow and a negative operating cash flow to net income ratio, reflecting poor cash generation and challenges in sustaining operations. The free cash flow to net income ratio is also negative, highlighting cash flow constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.21B	7.68B	10.60B	9.65B	9.61B
	Gross Profit
640.00M	889.00M	1.13B	3.40B	3.20B
	EBIT
63.00M	621.00M	-111.00M	631.00M	385.00M
	EBITDA
843.00M	1.65B	1.03B	1.07B	970.00M
	Net Income Common Stockholders
-888.00M	519.00M	911.00M	93.00M	-127.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	787.00M	736.00M	894.00M	777.00M
	Total Assets
19.10B	21.18B	27.38B	15.92B	16.66B
	Total Debt
8.77B	9.13B	13.40B	7.58B	5.70B
	Net Debt
7.76B	8.36B	12.67B	6.68B	4.92B
	Total Liabilities
16.46B	16.42B	23.30B	14.78B	13.95B
	Stockholders Equity
-59.00M	880.00M	359.00M	-516.00M	1.23B
Cash Flow		Free Cash Flow
-408.00M	-496.00M	-474.00M	-110.00M	37.00M
	Operating Cash Flow
-111.00M	138.00M	181.00M	618.00M	514.00M
	Investing Cash Flow
-335.00M	3.79B	-9.23B	-478.00M	-235.00M
	Financing Cash Flow
797.00M	-3.93B	8.91B	14.00M	-293.00M

Brookfield Business Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBUC, the sentiment is Neutral. The current price of 39.48 is below the 20-day moving average (MA) of 39.75, above the 50-day MA of 37.10, and above the 200-day MA of 35.56, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BBUC.

Brookfield Business Corp. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVG	77 Outperform	C$1.04B	8.24	10.69%	0.14%	120.44%	―
ONEX	72 Outperform	C$7.31B	12.26	5.40%	0.37%	-10.83%	-34.83%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
BBUC	52 Neutral	$3.93B	―	-247.20%	0.84%	-11.38%	-259.72%
IGIFF		$7.54B	11.16	12.84%	5.02%	―	―
SII		$1.60B	31.88	15.69%	1.86%	―	―
CIXXF		$3.32B	―	-40.34%	2.50%	―	―

Brookfield Business Corp. Class A Corporate Events

Brookfield Business Corporation Finalizes 2024 Annual Filings

Brookfield Business Corporation has completed its 2024 annual filings, including audited financial statements, with the SEC and Canadian securities authorities. This filing reflects the company’s commitment to transparency and regulatory compliance, potentially reinforcing investor confidence and supporting its competitive position in the industry.