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

• Market Cap: $4.74B
• Dividend Yield: 0.71%
• Average Volume (3M): 61.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: -0.16%
• EPS Growth: -2945.66%
• Country: CA
• Employees: 25,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -7.18
• Shares Outstanding: 69,996,735
• 10 Day Avg. Volume: 45,055
• 30 Day Avg. Volume: 61,118
• 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: 3.76
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 27.24
• Enterprise Value/Ebitda: 17.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$49.00 ▲(0.06% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenue, high leverage, and negative equity. Technical analysis provides some positive momentum, but valuation remains a concern with negative earnings and low dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Business Model Strength

BBUC's diversified business model across sectors like real estate and renewable energy provides resilience and long-term growth potential.

Revenue Streams

Diverse revenue streams from fees and asset operations enhance financial stability and reduce dependency on any single income source.

Strategic Partnerships

Partnerships expand BBUC's capital base and investment opportunities, supporting sustainable growth and competitive positioning.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or operational efficiency, impacting long-term financial health.

High Leverage

High leverage and negative equity pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Challenges

Negative cash flows highlight liquidity issues, potentially constraining investment and operational capabilities in the long term.

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. generates revenue through several key streams, primarily from management fees associated with its investment funds and performance fees based on the returns generated for investors. The company earns income from the ownership and operation of its assets across various sectors, including leasing revenues from real estate properties, energy sales from renewable projects, and tolls from infrastructure investments. Furthermore, BBUC benefits from strategic partnerships with other investment firms and institutional investors, which enhance its capital base and diversify its investment opportunities. The performance of its underlying assets and the successful execution of its investment strategies significantly contribute to the company's overall earnings.

Brookfield Business Corp. Class A Financial Statement Overview

Summary

Brookfield Business Corp. Class A is facing significant financial challenges across all verticals. The income statement reflects declining revenue and profitability, while the balance sheet shows high leverage and negative equity, posing substantial financial risks. Cash flow issues further exacerbate the situation, indicating a need for strategic financial restructuring to improve stability and performance.

Income Statement

The income statement shows a challenging financial position with declining revenue and negative net income. The TTM data indicates a revenue decrease of 6.4% compared to the previous year, and the net profit margin is negative at -12.6%. Despite a positive EBITDA margin of 10.8%, the overall profitability is weak, reflecting significant operational challenges.

Balance Sheet

The balance sheet reveals a highly leveraged position with a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -49.9 in the TTM period. The return on equity is also negative, indicating losses for shareholders. The equity ratio is unfavorable, suggesting financial instability and potential risks in meeting long-term obligations.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows in the TTM period, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.71B	8.21B	7.68B	6.80B	6.38B	9.61B
Gross Profit	653.00M	640.00M	889.00M	640.00M	392.00M	753.00M
EBITDA	1.03B	843.00M	1.65B	1.33B	828.00M	1.02B
Net Income	-1.07B	-888.00M	519.00M	911.00M	36.00M	-164.00M
Balance Sheet
Total Assets	16.73B	19.10B	21.18B	27.38B	15.92B	16.66B
Cash, Cash Equivalents and Short-Term Investments	629.00M	1.01B	787.00M	736.00M	894.00M	777.00M
Total Debt	8.11B	8.77B	9.13B	13.41B	7.58B	5.70B
Total Liabilities	14.42B	16.46B	16.42B	23.30B	14.78B	13.95B
Stockholders Equity	-491.00M	-59.00M	880.00M	359.00M	-516.00M	1.23B
Cash Flow
Free Cash Flow	-361.00M	-408.00M	-496.00M	-474.00M	-110.00M	37.00M
Operating Cash Flow	-109.00M	-111.00M	138.00M	181.00M	618.00M	514.00M
Investing Cash Flow	-345.00M	-335.00M	3.79B	-9.23B	-478.00M	-235.00M
Financing Cash Flow	416.00M	797.00M	-3.93B	8.91B	14.00M	-293.00M

Brookfield Business Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 48.97 is above the 20-day moving average (MA) of 48.52, above the 50-day MA of 48.65, and above the 200-day MA of 42.74, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 23.46 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
SII	79 Outperform	C$3.33B	47.40	14.90%	1.40%	35.51%	7.55%
CVG	77 Outperform	C$1.00B	300.63	0.32%	0.14%	-44.78%	-95.84%
IGM	76 Outperform	$14.32B	13.92	12.37%	3.64%	-1.02%	-5.65%
ONEX	69 Neutral	C$7.70B	12.86	5.15%	0.36%	2.46%	-27.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIX	61 Neutral	―	―	―	―	12.16%	-603.33%
BBUC	47 Neutral	$4.74B	-3.19	―	0.71%	-0.16%	-2945.66%

Brookfield Business Corp. Class A Corporate Events

Brookfield Business Partners Reports Q3 2025 Financial Results and Strategic Progress

Brookfield Business Partners reported a net loss of $59 million for the third quarter of 2025, primarily due to reduced tax recoveries and lower contributions from disposed operations compared to the previous year. Despite the loss, the company made significant progress with strategic acquisitions and corporate restructuring, including the acquisition of a Canadian mortgage lender and the simplification of its corporate structure, which are expected to support future growth and enhance intrinsic business value.

Brookfield Business Partners Reports Q3 2025 Financial Results Amid Strategic Progress

Brookfield Business Partners reported a net loss of $59 million for the third quarter of 2025, a significant decrease from the previous year’s net income of $301 million. The decline was attributed to lower tax recoveries and reduced contributions from disposed operations. Despite the financial setback, the company made strategic progress by acquiring a Canadian mortgage lender and simplifying its corporate structure, which was positively received by investors. The Industrials segment showed growth due to acquisitions and improved performance in energy storage, while the Business Services and Infrastructure Services segments faced challenges from partial sales and market conditions.

Brookfield Business Partners to Simplify Structure with Corporate Conversion

Brookfield Business Partners announced its plan to simplify its corporate structure by merging Brookfield Business Partners LP and Brookfield Business Corporation into a single publicly traded Canadian corporation, BBU Inc. This reorganization aims to broaden the investor base, improve trading liquidity, and increase demand from expected index inclusion. The transaction, expected to be completed in the first quarter of 2026, will not alter Brookfield’s ownership but will streamline financial reporting and eliminate partnership tax forms, benefiting Canadian and U.S. investors with tax-deferred transactions.