Fact based stock research
Brookfield Business Partners (NYSE:BBU)

BMG162341090

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Brookfield Business Partners stock research in summary

bbu.brookfield.com

ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), Brookfield Business Partners (Industrial Conglomerates, Bermuda) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Brookfield Business Partners are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on Brookfield Business Partners's financial characteristics. As the company Brookfield Business Partners's key financial metrics exhibit good value (Obermatt Value Rank of 61) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 24), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 61% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	61
Growth Rank	45
Safety Rank	24
Combined Rank	26

Country	Bermuda
Industry	Industrial Conglomerates
Index	Independent Boards Growth Markets, TSX Composite
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Brookfield Business Partners

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	61	61	61
GROWTH
GROWTH	54	87	100	45
SAFETY
SAFETY	7	20	14	24
SENTIMENT
SENTIMENT	n/a	79	22	^new
360° VIEW
360° VIEW	n/a	89	44	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Brookfield Business Partners is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	61	61	61
GROWTH
GROWTH	54	87	100	45
SAFETY
SAFETY	7	20	14	24
COMBINED
COMBINED	24	57	67	26

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Brookfield Business Partners the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), Brookfield Business Partners shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Brookfield Business Partners. Price-to-Sales (P/S) is 97, which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value concerning Brookfield Business Partners's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 68% of alternatives (32% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 48 are lower than average (dividends are expected to be lower than 52% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 43, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on Brookfield Business Partners's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Brookfield Business Partners may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	93	100	97	97
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	54	41	1	43
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	24	64	60	68
DIVIDEND YIELD
DIVIDEND YIELD	38	52	50	48
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	50	61	61	61

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Brookfield Business Partners; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Brookfield Business Partners shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Brookfield Business Partners. Sales Growth has a rank of 98 which means that currently professionals expect the company to grow more than 98% of its competitors. Stock Returns are also above average with a rank of 71. But Capital Growth has only a rank of 3, which means that currently professionals expect the company to grow its invested capital less than 97% of its competitors. Profit Growth is also low, with a rank of only 9, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 71% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	43	69	89	98
PROFIT GROWTH
PROFIT GROWTH	n/a	81	98	9
CAPITAL GROWTH
CAPITAL GROWTH	n/a	85	97	3
STOCK RETURNS
STOCK RETURNS	70	39	59	71
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	54	87	100	45

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Brookfield Business Partners.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 24 (better than 24% compared with alternatives), the company Brookfield Business Partners has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Brookfield Business Partners is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Brookfield Business Partners and the other two below average. Refinancing is at 97, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 97% of its competitors. But Leverage is high with a rank of 6, meaning the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. Liquidity is also on the riskier side with a rank of 14, meaning the company generates less profit to service its debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 24 (worse than 76% compared with alternatives), Brookfield Business Partners has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Brookfield Business Partners are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Brookfield Business Partners and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	4	8	6	6
REFINANCING
REFINANCING	14	66	76	97
LIQUIDITY
LIQUIDITY	33	23	14	14
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	7	20	14	24

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Brookfield Business Partners and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	86	67	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	7	18	^new
MARKET PULSE
MARKET PULSE	n/a	91	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	79	22	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Brookfield Business Partners.
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