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

• Market Cap: $3.53B
• Dividend Yield: 0.95%
• Average Volume (3M): 38.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: -11.38%
• EPS Growth: -259.72%
• Country: CA
• Employees: 25,000
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 71,700,000
• 10 Day Avg. Volume: 37,570
• 30 Day Avg. Volume: 38,334
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 5.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 20.90
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Brookfield Business Corp. Class A faces substantial financial challenges, including declining revenues, negative profitability, and high leverage, which weigh heavily on its stock score. Technical analysis provides mixed signals, with bearish momentum offset by short-term consolidation. Valuation metrics indicate potential risks, although the recent corporate event underscores a commitment to transparency. Overall, the stock's performance is currently hindered by financial instability and market dynamics.

Brookfield Business Corp. Class A Business Overview & Revenue Model

Company Description

Brookfield Business Corp. Class A (BBUC) is a leading global business services and industrial operations company. It operates across a diverse range of sectors including infrastructure, real estate, renewable power, and private equity. The company is part of the broader Brookfield Asset Management group, which is known for its expertise in managing long-term assets with a focus on sustainability and operational excellence.

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

Brookfield Business Corp. Class A faces challenges with declining revenues and high leverage. While profitability margins and ROE are relatively strong, they are overshadowed by significant debt levels and negative free cash flow, posing risks to financial stability. The company needs to address its cash flow issues and manage its leverage to enhance financial health.

Income Statement

The company's revenue has decreased significantly by 27.5% from 2022 to 2023, showing a concerning downward trend. Gross profit margin is at 11.57%, and the net profit margin stands at 6.75%, suggesting moderate profitability. The EBIT margin improved to 8.08% in 2023, but EBITDA margin is strong at 21.41%, indicating operational efficiency despite revenue decline.

Balance Sheet

The debt-to-equity ratio is notably high at 10.38, indicating significant leverage and potential financial risk. Return on Equity (ROE) is strong at 59%, but this is due to the low equity base, which is a concern. The equity ratio is low at 4.15%, reflecting a heavily debt-financed asset base, which poses financial stability risks.

Cash Flow

The company has negative free cash flow growth, with free cash flow declining from -$474 million in 2022 to -$496 million in 2023. The operating cash flow to net income ratio is 0.27, indicating limited cash flow generation relative to net income, and the free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
7.68B	10.60B	9.65B	9.61B	9.90B
	Gross Profit
889.00M	1.13B	3.40B	3.20B	2.85B
	EBIT
621.00M	-111.00M	631.00M	385.00M	769.00M
	EBITDA
1.65B	1.03B	1.07B	970.00M	1.29B
	Net Income Common Stockholders
519.00M	911.00M	93.00M	-127.00M	-134.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
787.00M	736.00M	894.00M	777.00M	792.00M
	Total Assets
21.18B	27.38B	15.92B	16.66B	16.68B
	Total Debt
9.13B	13.40B	7.58B	5.70B	5.81B
	Net Debt
8.36B	12.67B	6.68B	4.92B	5.02B
	Total Liabilities
16.42B	23.30B	14.78B	13.95B	13.52B
	Stockholders Equity
880.00M	359.00M	-516.00M	1.23B	1.40B
Cash Flow		Free Cash Flow
-496.00M	-474.00M	-110.00M	37.00M	346.00M
	Operating Cash Flow
138.00M	181.00M	618.00M	514.00M	753.00M
	Investing Cash Flow
3.79B	-9.23B	-478.00M	-235.00M	-4.13B
	Financing Cash Flow
-3.93B	8.91B	14.00M	-293.00M	3.56B

Brookfield Business Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.22
• 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 Positive. The current price of 37.22 is above the 20-day moving average (MA) of 34.94, above the 50-day MA of 36.49, and above the 200-day MA of 34.49, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 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
ENB	76 Outperform	$141.06B	27.64	8.63%	5.74%	24.95%	-17.19%
TRP	74 Outperform	$73.10B	16.72	15.89%	5.12%	0.72%	60.40%
FTS	72 Outperform	$33.87B	20.76	7.46%	3.53%	3.64%	5.82%
CU	70 Outperform	C$7.77B	25.29	6.93%	4.79%	-1.42%	-36.31%
BAM	69 Neutral	C$124.13B	42.17	18.14%	2.89%	27.17%	16.13%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
BBUC	40 Underperform	$3.53B	―	-247.20%	0.95%	-11.38%	-259.72%

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.