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

• Market Cap: C$4.06B
• Dividend Yield: 0.88%
• Average Volume (3M): 29.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: -2.34%
• EPS Growth: -301.85%
• Country: CA
• Employees: 25,000
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): -1.73
• Shares Outstanding: 70,660,290
• 10 Day Avg. Volume: 34,511
• 30 Day Avg. Volume: 29,876
• PEG Ratio: 0.03
• Price to Book (P/B): -30.17
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -4.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$41.03
• Price Target Upside: -2.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: C$41.00 ▼(-2.36% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and high leverage. While the corporate event of asset sales is a positive step towards reducing leverage and providing growth capital, the technical analysis and valuation metrics indicate mixed to negative sentiment. The stock's financial instability and current market conditions suggest caution.

Brookfield Business Corp. Class A Business Overview & Revenue Model

Company Description

Brookfield Business Corp. Class A (BBUC) is a subsidiary of Brookfield Asset Management, a global alternative asset manager. BBUC focuses on owning and operating high-quality businesses within the business services and industrial sectors. Its portfolio includes companies in industries such as infrastructure services, real estate services, and other essential service providers, leveraging Brookfield's extensive operational expertise and capital resources.

How the Company Makes Money

Brookfield Business Corp. Class A generates revenue primarily through the ownership and operation of its diverse portfolio of businesses. These businesses span various sectors, including business services and industrial operations, providing essential services and products. Revenue streams are derived from the operational income of these businesses, including service fees, product sales, and long-term contracts. The company benefits from Brookfield Asset Management's strategic guidance, capital access, and extensive industry relationships to optimize performance and growth within its portfolio. Additionally, any strategic partnerships or acquisitions that enhance its business capabilities can contribute to its revenue and profitability.

Brookfield Business Corp. Class A Financial Statement Overview

Summary

Brookfield Business Corp. Class A faces significant financial challenges, with declining revenues, negative profitability, and high leverage. The company needs to address its cash flow and equity concerns to improve financial stability and performance. Current financial metrics indicate potential risks and areas for improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.31B	8.21B	7.68B	10.60B	9.65B	9.61B
Gross Profit	604.00M	640.00M	889.00M	1.13B	3.40B	3.20B
EBITDA	794.00M	843.00M	1.65B	1.03B	1.07B	970.00M
Net Income	-796.00M	-888.00M	519.00M	911.00M	93.00M	-127.00M
Balance Sheet
Total Assets	19.30B	19.10B	21.18B	27.38B	15.92B	16.66B
Cash, Cash Equivalents and Short-Term Investments	968.00M	1.01B	787.00M	736.00M	894.00M	777.00M
Total Debt	8.71B	8.77B	9.13B	13.40B	7.58B	5.70B
Total Liabilities	16.71B	16.46B	16.42B	23.30B	14.78B	13.95B
Stockholders Equity	-78.00M	-59.00M	880.00M	359.00M	-516.00M	1.23B
Cash Flow
Free Cash Flow	-389.00M	-408.00M	-496.00M	-474.00M	-110.00M	37.00M
Operating Cash Flow	-108.00M	-111.00M	138.00M	181.00M	618.00M	514.00M
Investing Cash Flow	-348.00M	-335.00M	3.79B	-9.23B	-478.00M	-235.00M
Financing Cash Flow	744.00M	797.00M	-3.93B	8.91B	14.00M	-293.00M

Brookfield Business Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.99
• 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 Positive. The current price of 41.99 is below the 20-day moving average (MA) of 42.14, above the 50-day MA of 41.31, and above the 200-day MA of 37.62, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 47.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SII	79 Outperform	$2.31B	33.17	15.07%	1.80%	40.04%	22.21%
IGM	78 Outperform	$11.43B	11.79	12.60%	4.66%	-3.20%	-8.50%
CVG	77 Outperform	C$1.05B	8.79	9.77%	0.14%	132.11%	5511.22%
ONEX	74 Outperform	C$7.84B	11.15	6.19%	0.35%	-8.63%	-27.09%
Sector *	62 Neutral	C$15.64B	6.64	13.72%	5.97%	22.30%	-10.12%
CIX	61 Neutral	$4.61B	―	-40.51%	3.20%	12.16%	-603.33%
BBUC	47 Neutral	C$4.06B	―	-301.45%	0.88%	-2.34%	-301.85%

Brookfield Business Corp. Class A Corporate Events

Brookfield Business Partners Sells Assets to Launch New Private Equity Strategy

Brookfield Business Partners has announced the sale of partial interests in three of its businesses to a new evergreen private equity strategy managed by Brookfield Asset Management. This transaction, which has been independently reviewed and deemed fair, allows Brookfield to monetize its assets at a value beneficial to its trading price, providing capital for growth and reducing corporate leverage.