Brookfield Business Corporation Class A Subordinate Voting Shares (BBUC)

FairStock Score: 41/100 — MIXED

Key Financials

Current Price$27.81
Market Cap$6.9B
P/E Ratio-64.67
ROE1.98%
Dividend Yield0.97%
SectorIndustrials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable earning power and a margin of safety. Brookfield Business Corporation is a global owner of controlling stakes in business services, infrastructure services, construction, energy, and industrial companies. In the 2026-Q2 quarter, revenue was $6.5B and net income was $50.0M, a 0.77% margin. That is thin for a $6.9B market capitalization, and FairStock calculations at the 2026-10-13 close show a negative P/E of -62.12 and P/B of 1.01, so the shares sit near book value but without positive earnings. The returns on capital are weak: FairStock calculates ROE of 1.98% and ROCE of 3.37%, far below the 15%-20% return the firm says it seeks. Leverage is a major Graham concern: debt-to-equity is 2.96 and the Altman Z-Score is 0.30, a distress-level reading. Free cash flow is the strongest data point: $402.0M trailing twelve months, a 5.8% FCF yield. EV/EBITDA of 6.80 is not demanding if those cash flows persist. The Piotroski F-Score is 5/9, middling. The computed Lynch category is none because there are only 0 years of filed results and three are needed. FairStock Score is 41/100. This looks like a leveraged, diversified owner with weak current profitability and high debt, priced near book. I would want evidence of better margins, higher returns on capital, and lower debt before calling it a classic value opportunity.

In plain English: Brookfield Business Corporation owns controlling stakes in a mix of industrial and business-service companies around the world. In its latest reported quarter, 2026-Q2, sales were $6.5B but profit was only $50.0M, a very thin margin, and the company carries a lot of debt. At the 2026-10-13 close of $26.71, the shares trade near their accounting net asset value, so the price looks more fair than clearly cheap given weak current profits and high debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer