BLACKBERRY LTD (BB.CA) Stock Fundamental Analysis
Canada - TSX:BB - CA09228F1036 - Common Stock
6.63 CAD
+0.15 (+2.31%)
We assign a fundamental rating of 4 out of 10 to BB. BB was compared to 63 industry peers in the Software industry. BB has an average financial health and profitability rating. BB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BB had positive earnings in the past year.
BB had a positive operating cash flow in the past year.
In the past 5 years BB reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: BB reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of BB (-0.24%) is better than 60.32% of its industry peers.
With a decent Return On Equity value of -0.39%, BB is doing good in the industry, outperforming 63.49% of the companies in the same industry.
BB has a better Return On Invested Capital (4.51%) than 68.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BB is significantly below the industry average of 12.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.39% | ||
| ROIC | 4.51% |
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
Looking at the Operating Margin, with a value of 11.09%, BB is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With a decent Gross Margin value of 75.21%, BB is doing good in the industry, outperforming 79.37% of the companies in the same industry.
BB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | N/A | ||
| GM | 75.21% |
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.
The number of shares outstanding for BB has been increased compared to 5 years ago.
BB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.95 indicates that BB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BB (1.95) is comparable to the rest of the industry.
The Debt to FCF ratio of BB is 8.52, which is on the high side as it means it would take BB, 8.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BB (8.52) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that BB is not too dependend on debt financing.
BB has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.43
WACC10.4%
2.3 Liquidity
BB has a Current Ratio of 2.20. This indicates that BB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BB (2.20) is better than 68.25% of its industry peers.
A Quick Ratio of 2.20 indicates that BB has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.20, BB is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1000.00% 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.
The Revenue for BB has decreased by -15.51% in the past year. This is quite bad
Measured over the past years, BB shows a very negative growth in Revenue. The Revenue has been decreasing by -12.45% on average per year.
EPS 1Y (TTM)1000%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%169.25%
Revenue 1Y (TTM)-15.51%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-10.62%
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 69.29% on average per year.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y380.65%
EPS Next 2Y165.3%
EPS Next 3Y112%
EPS Next 5Y69.29%
Revenue Next Year-3.39%
Revenue Next 2Y1.87%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BB is valuated quite expensively with a Price/Earnings ratio of 44.20.
Compared to the rest of the industry, the Price/Earnings ratio of BB indicates a somewhat cheap valuation: BB is cheaper than 76.19% of the companies listed in the same industry.
BB is valuated expensively when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.78 indicates a quite expensive valuation of BB.
BB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BB is cheaper than 69.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.30, BB is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.2 | ||
| Fwd PE | 33.78 |
4.2 Price Multiples
65.08% of the companies in the same industry are more expensive than BB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BB is valued a bit cheaper than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 122.06 | ||
| EV/EBITDA | 30.43 |
4.3 Compensation for Growth
BB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BB's earnings are expected to grow with 112.00% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y165.3%
EPS Next 3Y112%
5. Dividend
5.1 Amount
No dividends for BB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BB (10/8/2025, 7:00:00 PM)
6.63
+0.15 (+2.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap3.91B
Analysts47.69
Price Target4.58 (-30.92%)
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)443.69%
Min EPS beat(2)210.68%
Max EPS beat(2)676.7%
EPS beat(4)4
Avg EPS beat(4)306.81%
Min EPS beat(4)94.17%
Max EPS beat(4)676.7%
EPS beat(8)8
Avg EPS beat(8)210.76%
EPS beat(12)12
Avg EPS beat(12)168.42%
EPS beat(16)16
Avg EPS beat(16)142.68%
Revenue beat(2)2
Avg Revenue beat(2)4.2%
Min Revenue beat(2)3.09%
Max Revenue beat(2)5.32%
Revenue beat(4)4
Avg Revenue beat(4)4.22%
Min Revenue beat(4)3.09%
Max Revenue beat(4)5.32%
Revenue beat(8)6
Avg Revenue beat(8)6.61%
Revenue beat(12)7
Avg Revenue beat(12)14.18%
Revenue beat(16)9
Avg Revenue beat(16)10.4%
PT rev (1m)2.28%
PT rev (3m)12.51%
EPS NQ rev (1m)16.67%
EPS NQ rev (3m)16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.2 | ||
| Fwd PE | 33.78 | ||
| P/S | 5.22 | ||
| P/FCF | 122.06 | ||
| P/OCF | 92.35 | ||
| P/B | 3.87 | ||
| P/tB | 13.72 | ||
| EV/EBITDA | 30.43 |
EPS(TTM)0.15
EY2.26%
EPS(NY)0.2
Fwd EY2.96%
FCF(TTM)0.05
FCFY0.82%
OCF(TTM)0.07
OCFY1.08%
SpS1.27
BVpS1.71
TBVpS0.48
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.39% | ||
| ROCE | 6.26% | ||
| ROIC | 4.51% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 30.08% | ||
| OM | 11.09% | ||
| PM (TTM) | N/A | ||
| GM | 75.21% | ||
| FCFM | 4.27% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 25.52% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 9.95 | ||
| Cash Conversion | 34.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 1.95 |
F-Score6
WACC10.4%
ROIC/WACC0.43
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)1000%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%169.25%
EPS Next Y380.65%
EPS Next 2Y165.3%
EPS Next 3Y112%
EPS Next 5Y69.29%
Revenue 1Y (TTM)-15.51%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-10.62%
Revenue Next Year-3.39%
Revenue Next 2Y1.87%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y265.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year215.29%
EBIT Next 3Y73.64%
EBIT Next 5Y49.63%
FCF growth 1Y112.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y119.74%
OCF growth 3YN/A
OCF growth 5Y-8.69%