Brookfield Business Corporation (BBUC) is a Asset Management company in the Financial Services sector, currently trading at $34.61. It has a SharesGrow Score of 54/100, indicating a mixed investment profile with 1 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of BBUC = $438.70 (+1167.6% from the current price, the stock appears undervalued).
Valuation: BBUC trades at a trailing Price-to-Earnings (P/E) of -3.3 (S&P 500 average ~25).
Financials: revenue is $27.5B, +71.3%/yr average growth. Net income is $26M, growing at -70.4%/yr. Net profit margin is 0.1% (thin). Gross margin is 19.3% (+8.6 pp trend).
Balance sheet: total debt is $44.6B with negative equity of -$678M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.61 (strong liquidity). Debt-to-assets is 271.8%. Total assets: $16.4B.
SharesGrow 7-Criteria breakdown: Value ?/100 (Fail), Growth 58/100 (Partial), Past 75/100 (Partial), Health 75/100 (Pass), Moat 50/100 (Partial), Future ?/100 (Fail), Income 30/100 (Fail).
