BLACKBERRY LTD (BB.CA) Stock Fundamental Analysis
TSX:BB - Toronto Stock Exchange - CA09228F1036 - Common Stock - Currency: CAD
BB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Software industry. The financial health of BB is average, but there are quite some concerns on its profitability. BB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BB was profitable.
In the past year BB had a positive cash flow from operations.
BB had negative earnings in 4 of the past 5 years.
In multiple years BB reported negative operating cash flow during the last 5 years.
1.2 Ratios
BB has a Return On Assets of -2.90%. This is comparable to the rest of the industry: BB outperforms 50.79% of its industry peers.
BB has a Return On Equity (-4.84%) which is comparable to the rest of the industry.
BB's Return On Invested Capital of 1.83% is fine compared to the rest of the industry. BB outperforms 65.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BB is significantly below the industry average of 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.9% | ||
| ROE | -4.84% | ||
| ROIC | 1.83% |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)4.77%
ROIC(5y)N/A
1.3 Margins
With a decent Operating Margin value of 4.39%, BB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
BB has a better Gross Margin (72.65%) than 76.19% of its industry peers.
In the last couple of years the Gross Margin of BB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | N/A | ||
| GM | 72.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.31%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BB is destroying value.
The number of shares outstanding for BB has been increased compared to 1 year ago.
BB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BB is higher compared to a year ago.
2.2 Solvency
BB has an Altman-Z score of 1.10. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BB (1.10) is comparable to the rest of the industry.
The Debt to FCF ratio of BB is 59.27, which is on the high side as it means it would take BB, 59.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 59.27, BB is in line with its industry, outperforming 53.97% of the companies in the same industry.
BB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
BB's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. BB outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.18
WACC10.2%
2.3 Liquidity
A Current Ratio of 2.10 indicates that BB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.10, BB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that BB has no problem at all paying its short term obligations.
BB's Quick ratio of 2.10 is fine compared to the rest of the industry. BB outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 333.33% over the past year.
BB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
BB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.28%.
BB shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.45% yearly.
EPS 1Y (TTM)333.33%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%166.67%
Revenue 1Y (TTM)-11.28%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-15.49%
3.2 Future
Based on estimates for the next years, BB will show a very strong growth in Earnings Per Share. The EPS will grow by 71.73% on average per year.
Based on estimates for the next years, BB will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
Revenue Next Year-6.74%
Revenue Next 2Y0.89%
Revenue Next 3Y3.87%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 53.60, BB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BB is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
BB is valuated expensively when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
BB is valuated quite expensively with a Price/Forward Earnings ratio of 26.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BB indicates a somewhat cheap valuation: BB is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BB to the average of the S&P500 Index (37.67), we can say BB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.6 | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
BB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BB is cheaper than 61.90% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 706.04 | ||
| EV/EBITDA | 35.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BB's earnings are expected to grow with 113.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y170.43%
EPS Next 3Y113.89%
5. Dividend
5.1 Amount
BB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BB (7/25/2025, 7:00:00 PM)
5.36
-0.04 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners47%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap3.19B
Analysts47.69
Price Target4.48 (-16.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)385.44%
Min EPS beat(2)94.17%
Max EPS beat(2)676.7%
EPS beat(4)4
Avg EPS beat(4)279.14%
Min EPS beat(4)94.17%
Max EPS beat(4)676.7%
EPS beat(8)8
Avg EPS beat(8)189.06%
EPS beat(12)12
Avg EPS beat(12)153.25%
EPS beat(16)16
Avg EPS beat(16)130.56%
Revenue beat(2)2
Avg Revenue beat(2)4.45%
Min Revenue beat(2)3.57%
Max Revenue beat(2)5.32%
Revenue beat(4)3
Avg Revenue beat(4)3.34%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)5.32%
Revenue beat(8)5
Avg Revenue beat(8)5.85%
Revenue beat(12)6
Avg Revenue beat(12)13.74%
Revenue beat(16)9
Avg Revenue beat(16)10.45%
PT rev (1m)10%
PT rev (3m)10%
EPS NQ rev (1m)-28.57%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.6 | ||
| Fwd PE | 26.79 | ||
| P/S | 4.21 | ||
| P/FCF | 706.04 | ||
| P/OCF | 172.59 | ||
| P/B | 3.21 | ||
| P/tB | 11.42 | ||
| EV/EBITDA | 35.47 |
EPS(TTM)0.1
EY1.87%
EPS(NY)0.2
Fwd EY3.73%
FCF(TTM)0.01
FCFY0.14%
OCF(TTM)0.03
OCFY0.58%
SpS1.27
BVpS1.67
TBVpS0.47
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.9% | ||
| ROE | -4.84% | ||
| ROCE | 2.54% | ||
| ROIC | 1.83% | ||
| ROICexc | 2.69% | ||
| ROICexgc | 13.53% | ||
| OM | 4.39% | ||
| PM (TTM) | N/A | ||
| GM | 72.65% | ||
| FCFM | 0.6% |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)4.77%
ROIC(5y)N/A
ROICexc(3y)7.45%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.62%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.31%
GM growth 5Y-0.01%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 27.27% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 21.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 1.1 |
F-Score6
WACC10.2%
ROIC/WACC0.18
Cap/Depr(3y)32.41%
Cap/Depr(5y)28.32%
Cap/Sales(3y)4.15%
Cap/Sales(5y)4.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)333.33%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%166.67%
EPS Next Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
Revenue 1Y (TTM)-11.28%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-15.49%
Revenue Next Year-6.74%
Revenue Next 2Y0.89%
Revenue Next 3Y3.87%
Revenue Next 5YN/A
EBIT growth 1Y141.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year207.89%
EBIT Next 3Y70.11%
EBIT Next 5Y50.71%
FCF growth 1Y102.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y111.07%
OCF growth 3YN/A
OCF growth 5Y-8.69%