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.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Brookfield Business Partners stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), Brookfield Business Partners (Industrial Conglomerates, Bermuda) shares have lower financial characteristics compared with similar stocks. Shares of Brookfield Business Partners are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives) but show below-average growth (Growth Rank of 3), and are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 4, is a sell 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 59) but low growth (Obermatt Growth Rank of 3) and risky financing practices (Obermatt Safety Rank of 14), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 59% 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
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360° Viewnew| Country | Bermuda |
| Industry | Industrial Conglomerates |
| Index | Independent Boards Growth Markets, TSX Composite |
| Size class | XX-Large |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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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 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 54 |
|
87 |
|
100 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
20 |
|
14 |
|
14 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
79 |
|
22 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
89 |
|
44 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), Brookfield Business Partners (Industrial Conglomerates, Bermuda) shares have lower financial characteristics compared with similar stocks. Shares of Brookfield Business Partners are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives) but show below-average growth (Growth Rank of 3), and are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 4, is a sell 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 59) but low growth (Obermatt Growth Rank of 3) and risky financing practices (Obermatt Safety Rank of 14), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 59% 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 50 |
|
61 |
|
61 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 54 |
|
87 |
|
100 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
20 |
|
14 |
|
14 |
|
| COMBINED | ||||||||
| COMBINED | 24 |
|
57 |
|
67 |
|
4 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% 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 95, which means that the stock price compared with what market professionals expect for future sales is lower than for 95% 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 70% of alternatives (30% 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 28, 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 59, 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 |
|
95 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 54 |
|
41 |
|
1 |
|
28 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 24 |
|
64 |
|
60 |
|
70 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 38 |
|
52 |
|
50 |
|
48 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 50 |
|
61 |
|
61 |
|
59 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 3 (better than 3% compared with alternatives), Brookfield Business Partners shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Brookfield Business Partners. Sales Growth has a below market rank of 15, which means that, currently, professionals expect the company to grow less than 85% of its competitors. The same is valid for Capital Growth, with a rank of 1, and Profit Growth, with a rank of 6. Currently, professionals expect the company to grow its profits less than 94% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 53, which means that the stock returns have recently been above 53% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 3, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Brookfield Business Partners, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. 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 low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 43 |
|
69 |
|
89 |
|
15 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
81 |
|
98 |
|
6 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
85 |
|
97 |
|
1 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 70 |
|
39 |
|
59 |
|
53 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 54 |
|
87 |
|
100 |
|
3 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% 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 89, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 89% 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 14 (worse than 86% 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 |
|
89 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 33 |
|
23 |
|
14 |
|
14 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 7 |
|
20 |
|
14 |
|
14 |
|
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 |
|
Free stock analysis by the purely fact based Obermatt Method for Brookfield Business Partners from December 19, 2024.
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