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Brookfield Business Corp. Class A (TSE:BBUC)
TSX:BBUC

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

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Brookfield Business Corp. Class A

(TSX:BBUC)

Rating:52Neutral
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 (BBUC) vs. iShares MSCI Canada ETF (EWC)

Brookfield Business Corp. Class A Business Overview & Revenue Model

Company DescriptionBrookfield 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 MoneyBrookfield 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
45
Neutral
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
30
Negative
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.21B7.68B10.60B9.65B9.61B
Gross Profit
640.00M889.00M1.13B3.40B3.20B
EBIT
63.00M621.00M-111.00M631.00M385.00M
EBITDA
843.00M1.65B1.03B1.07B970.00M
Net Income Common Stockholders
-888.00M519.00M911.00M93.00M-127.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.01B787.00M736.00M894.00M777.00M
Total Assets
19.10B21.18B27.38B15.92B16.66B
Total Debt
8.77B9.13B13.40B7.58B5.70B
Net Debt
7.76B8.36B12.67B6.68B4.92B
Total Liabilities
16.46B16.42B23.30B14.78B13.95B
Stockholders Equity
-59.00M880.00M359.00M-516.00M1.23B
Cash FlowFree Cash Flow
-408.00M-496.00M-474.00M-110.00M37.00M
Operating Cash Flow
-111.00M138.00M181.00M618.00M514.00M
Investing Cash Flow
-335.00M3.79B-9.23B-478.00M-235.00M
Financing Cash Flow
797.00M-3.93B8.91B14.00M-293.00M

Brookfield Business Corp. Class A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price39.48
Price Trends
50DMA
37.10
Positive
100DMA
36.86
Positive
200DMA
35.56
Positive
Market Momentum
MACD
0.62
Positive
RSI
53.43
Neutral
STOCH
56.76
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCVG
77
Outperform
C$1.04B8.2410.69%0.14%120.44%
72
Outperform
C$7.31B12.265.40%0.37%-10.83%-34.83%
64
Neutral
$12.83B9.787.78%16985.64%12.26%-7.81%
52
Neutral
$3.93B-247.20%0.84%-11.38%-259.72%
$7.54B11.1612.84%5.02%
SISII
$1.60B31.8815.69%1.86%
$3.32B-40.34%2.50%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BBUC
Brookfield Business Corp. Class A
39.48
11.47
40.94%
IGIFF
IGM Financial
31.92
5.62
21.37%
TSE:CVG
Clairvest
72.50
3.32
4.80%
TSE:ONEX
ONEX Corporation
107.36
11.38
11.86%
SII
Sprott
61.87
20.11
48.16%
CIXXF
CI Financial
23.06
12.93
127.64%

Brookfield Business Corp. Class A Corporate Events

Regulatory Filings and Compliance
Brookfield Business Corporation Finalizes 2024 Annual Filings
Positive
Apr 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.