Brookfield Business Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SNC-Lavalin Group, Inc.

Stantec, Inc.

WSP Global, Inc.

Bird Construction, Inc.

Badger Infrastructure Solutions Ltd.

Foraco International SA

Aecon Group, Inc.

ADF Group, Inc.

Brookfield Business Corp.

SolarBank Corp.

Spark Power Group, Inc.

Why is Brookfield Business Corp. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 36.36%, its profits have fallen by -74.3%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Brookfield Business Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Brookfield Business Corp.

-100.0%

1.80

37.33%

S&P/TSX 60

18.99%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.96%

EBIT Growth (5y)

-4.37%

EBIT to Interest (avg)

0.85

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

-97.91

Sales to Capital Employed (avg)

0.97

Tax Ratio

7.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

87.33%

ROCE (avg)

7.89%

ROE (avg)

30.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-17.63

EV to EBIT

26.47

EV to EBITDA

7.34

EV to Capital Employed

1.42

EV to Sales

1.19

PEG Ratio

Dividend Yield

ROCE (Latest)

5.36%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

NET PROFIT(Q)

At CAD 77.5 MM has Grown at 13,867.72%

INTEREST COVERAGE RATIO(Q)

Highest at 225.47

PRE-TAX PROFIT(Q)

At CAD 166.07 MM has Grown at 137.83%

RAW MATERIAL COST(Y)

Fallen by -205.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 51.78%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.42%

OPERATING PROFIT(Q)

Highest at CAD 661.51 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.7 %

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -564.51 MM

NET SALES(Q)

Lowest at CAD 2,574.06 MM

Here's what is working for Brookfield Business Corp.

Net Profit

At CAD 77.5 MM has Grown at 13,867.72%

over average net sales of the previous four periods of CAD 0.55 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Interest Coverage Ratio

Highest at 225.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CAD 166.07 MM has Grown at 137.83%

over average net sales of the previous four periods of CAD -438.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Operating Profit

Highest at CAD 661.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 25.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 166.07 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Inventory Turnover Ratio

Highest at 51.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.42%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -205.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 528.65 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Depreciation

At CAD 528.65 MM has Grown at 87.98%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

Here's what is not working for Brookfield Business Corp.

Operating Cash Flow

Lowest at CAD -564.51 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 2,574.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)