Brookfield Business Partners L. BBU

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
58/100
Moderate

Ranked against 26 peers in Conglomerates

About Brookfield Business Partners L.

Brookfield Business Partners L.P. is a private equity firm specializing in growth capital, divestitures, and acquisitions. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. The firm prefers to invest globally. It prefers to take majority controlling stake in companies. The firm seeks returns of at least 15%-20% on its investments. The firm was founded … Full BBU analysis →

Key strengths

  • Cost Leadership Position Operating margin at 76.0th percentile with strong OpEx control demonstrates cost leadership.
  • Operating Expense Control OpEx growth is controlled (score 0.76), demonstrating operating leverage.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.22), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
52
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where BBU ranks in Conglomerates

Brookfield Business Partners L. ranks #11 of 27 scored companies in Conglomerates by moat score — the top 41%. The widest moat in the group is Steel Partners Holdings LP LTD (SPLP) at 79/100.

# Company Moat score Rating
7 RCM Technologies, Inc. RCMT 66/100 Moderate
8 Cresud S.A.C.I.F. y A. Warrant CRESW 62/100 Moderate
9 Cresud S.A.C.I.F. y A. CRESY 62/100 Moderate
10 MDU Resources Group, Inc. MDU 61/100 Moderate
11 Brookfield Business Partners L. BBU 58/100 Moderate
12 Seaboard Corporation SEB 54/100 Moderate
13 FTAI Infrastructure Inc. FIP 50/100 Developing
14 Harte Hanks, Inc. HHS 47/100 Developing
15 Matthews International Corporat MATW 46/100 Developing

See every General Corporate company ranked by moat score →

How BBU scores on the Corporate Default defenses

Pricing Power

Score 52 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 88 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 53 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 51 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 43 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 70 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding BBU's moat

What is Brookfield Business Partners L.'s moat score?

Brookfield Business Partners L. (BBU) scores 58 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #11 of 27 scored companies in Conglomerates, the top 41%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 26 companies in Conglomerates. Its strongest defense is Cost Advantage (88/100) and its weakest is Resilience (43/100).

How does Brookfield Business Partners L. compare with other Conglomerates companies?

Brookfield Business Partners L. ranks #11 of 27 scored companies in Conglomerates by moat score. The widest moat in Conglomerates is Steel Partners Holdings LP LTD (SPLP) at 79/100. The companies ranked closest are MDU Resources Group, Inc. (MDU) at 61 just above it and Seaboard Corporation (SEB) at 54 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 26 companies in Conglomerates. The defenses are then weighted to produce the overall score out of 100.

Why is Brookfield Business Partners L. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Brookfield Business Partners L.?

The Corporate Default template measures 6 defenses, and BBU scores: Pricing Power (52), Cost Advantage (88), Customer Stickiness (53), Capital Efficiency (51), Resilience (43), Scale & Market Position (70). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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