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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Stantec, Inc.

Bird Construction, Inc.

WSP Global, Inc.

Aecon Group, Inc.

Badger Infrastructure Solutions Ltd.

Brookfield Business Corp.

Foraco International SA

SolarBank Corp.

Spark Power Group, Inc.

Why is Brookfield Business Corp. ?

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 19.70%, its profits have risen by 124% ; the PEG ratio of the company is 0.2

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.

19.7%

1.73

39.30%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.63%

EBIT Growth (5y)

23.92%

EBIT to Interest (avg)

0.85

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

-97.91

Sales to Capital Employed (avg)

1.11

Tax Ratio

7.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

32.07%

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

Industry P/E

Price to Book Value

0.87

EV to EBIT

35.20

EV to EBITDA

16.29

EV to Capital Employed

0.98

EV to Sales

3.85

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

2.80%

ROE (Latest)

3.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

NET SALES(Q)

At CAD 8,828.31 MM has Grown at 109.07%

PRE-TAX PROFIT(Q)

At CAD 373.1 MM has Grown at 265.06%

INTEREST COVERAGE RATIO(Q)

Highest at 231.59

DIVIDEND PAYOUT RATIO(Y)

Highest at 32.49%

RAW MATERIAL COST(Y)

Fallen by -2.06% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 27.56 %

NET PROFIT(Q)

At CAD 49.79 MM has Grown at 59.9%

-12What is not working for the Company

NET PROFIT(HY)

At CAD 26.09 MM has Grown at -95.14%

INTEREST(Q)

At CAD 1,050.73 MM has Grown at 290.44%

Here's what is working for Brookfield Business Corp.

Net Sales

At CAD 8,828.31 MM has Grown at 109.07%

over average net sales of the previous four periods of CAD 4,222.59 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 373.1 MM has Grown at 265.06%

over average net sales of the previous four periods of CAD 102.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Interest Coverage Ratio

Highest at 231.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 27.56 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At CAD 49.79 MM has Grown at 59.9%

over average net sales of the previous four periods of CAD 31.14 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend Payout Ratio

Highest at 32.49%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.06% (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

At CAD 1,042.5 MM has Grown at 342.4%

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.

Interest

At CAD 1,050.73 MM has Grown at 290.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)