Brookfield Business Partners Units BBU

Alternate Symbol(s): T.BBU.UN

Industrials Conglomerates

Brookfield Business Partners L.P. is a Bermuda-based company that is focused on owning and operating businesses that provide essential products and services. Its sole direct investment is managing a general partnership interest in Brookfield Business L.P., through which it holds all its interests in its operating businesses. It has four operating segments: Business services, Infrastructure services, Industrials, and Corporate and other. Its business services segment includes a residential mortgage insurer, dealer software and technology services, healthcare services, non-bank financial services, and entertainment operation. Its infrastructure services segment includes services such as offshore oil, modular building leasing, and work access. Its industrials segment includes operations such as advanced energy storage, engineered components manufacturing, and water and wastewater. Its operations are located in the United States, the United Kingdom, Europe, Australia, Canada, and Brazil.

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Brookfield Business Partners Units > Assessment

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Post by retiredcfon Feb 14, 2021 7:19am

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Post# 32563979

Assessment

Q: Can I get your thoughts on BBU.UN? It seems outrageously cheap at only $3bil market cap when Westinghouse is producing $650mil in Ebitda and the company earned $1.3bil in ebitda in 2020.

A: The stock is cheap at 12X earnings and very low EV/EBITDA. Two reasons: (1) earnings are highly variable and are expected to decline this year. (2) Debt is very high at more than 5X cash flow. On the first point we have no concerns: it is simply the nature of the business. On #2 is needs to be watched, but the company has substantial assets and we would not see debt as a huge issue. The Q4 was better than expected, and low rates and a growth recovery should continue to be positive for its businesses.

So said 5iResearch last week. GLTA