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

• Market Cap: C$4.14B
• Dividend Yield: 0.8%
• Average Volume (3M): 25.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: -11.38%
• EPS Growth: -259.72%
• Country: CA
• Employees: 25,000
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 70,660,290
• 10 Day Avg. Volume: 28,608
• 30 Day Avg. Volume: 25,077
• PEG Ratio: -0.18
• Price to Book (P/B): -5.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.16
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 12.17
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: C$45.00 ▲(4.92%Upside)

The stock's overall performance is mixed. Financial challenges weigh heavily on the score, with negative profitability and high leverage posing significant risks. However, strong technical indicators and a positive corporate event provide some optimism for potential recovery and growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.99B	8.21B	7.68B	10.60B	9.65B	9.61B
Gross Profit	672.47M	640.00M	889.00M	1.13B	3.40B	3.20B
EBITDA	1.09B	843.00M	1.65B	1.03B	1.07B	970.00M
Net Income	-37.33M	-888.00M	519.00M	911.00M	93.00M	-127.00M
Balance Sheet
Total Assets	16.03B	19.10B	21.18B	27.38B	15.92B	16.66B
Cash, Cash Equivalents and Short-Term Investments	963.00M	1.01B	787.00M	736.00M	894.00M	777.00M
Total Debt	5.66B	8.77B	9.13B	13.40B	7.58B	5.70B
Total Liabilities	13.43B	16.46B	16.42B	23.30B	14.78B	13.95B
Stockholders Equity	1.20B	-59.00M	880.00M	359.00M	-516.00M	1.23B
Cash Flow
Free Cash Flow	-392.64M	-408.00M	-496.00M	-474.00M	-110.00M	37.00M
Operating Cash Flow	-31.53M	-111.00M	138.00M	181.00M	618.00M	514.00M
Investing Cash Flow	3.40B	-335.00M	3.79B	-9.23B	-478.00M	-235.00M
Financing Cash Flow	-3.25B	797.00M	-3.93B	8.91B	14.00M	-293.00M

Brookfield Business Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 42.89 is above the 20-day moving average (MA) of 40.21, above the 50-day MA of 38.94, and above the 200-day MA of 36.37, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 is Negative, 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	C$2.40B	34.42	15.69%	2.47%	19.98%	18.77%
CVG	77 Outperform	C$1.10B	9.07	10.05%	1.04%	120.44%	―
IGM	73 Outperform	$10.16B	10.80	12.84%	5.23%	-3.85%	-4.41%
ONEX	72 Outperform	C$7.73B	12.96	5.40%	0.36%	-10.83%	-34.83%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
BBUC	60 Neutral	C$4.14B	―	-247.20%	0.80%	-11.38%	-259.72%
CIX	51 Neutral	$4.57B	―	-40.34%	3.47%	7.92%	-60.24%

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.