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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SNC-Lavalin Group, Inc.

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Foraco International SA

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Aecon Group, Inc.

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Badger Infrastructure Solutions Ltd.

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.

9.06%

1.80

37.33%

S&P/TSX 60

23.72%

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)

-4.58%

EBIT Growth (5y)

-8.00%

EBIT to Interest (avg)

0.85

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

-97.91

Sales to Capital Employed (avg)

0.98

Tax Ratio

7.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

92.13%

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

-4.38

EV to EBIT

25.79

EV to EBITDA

8.48

EV to Capital Employed

1.62

EV to Sales

1.31

PEG Ratio

Dividend Yield

ROCE (Latest)

6.27%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

6What is working for the Company

ROCE(HY)

Highest at 0%

RAW MATERIAL COST(Y)

Fallen by -22.09% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 62.2 times

EPS(Q)

Highest at CAD 0

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -299.19 MM

PRE-TAX PROFIT(Q)

At CAD -411.34 MM has Fallen at -51.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 42.49

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.21 times

NET SALES(Q)

At CAD 2,320.21 MM has Fallen at -14.04%

OPERATING PROFIT(Q)

Lowest at CAD 114.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.93 %

NET PROFIT(Q)

Lowest at CAD -274.69 MM

Here's what is working for Brookfield Business Corp.

EPS

Highest at CAD 0

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Highest at 62.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -22.09% (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

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

Pre-Tax Profit

At CAD -411.34 MM has Fallen at -51.76%

over average net sales of the previous four periods of CAD -271.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -274.69 MM has Fallen at -387.16%

over average net sales of the previous four periods of CAD 95.66 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD -299.19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Lowest at 42.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CAD 2,320.21 MM has Fallen at -14.04%

over average net sales of the previous four periods of CAD 2,699.13 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 114.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 4.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CAD -274.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 3.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio