BLACKBERRY LTD (BB.CA) Stock Fundamental Analysis
TSX:BB - Toronto Stock Exchange - CA09228F1036 - Common Stock - Currency: CAD
BB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. BB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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
BB has a Return On Assets (-2.90%) which is comparable to the rest of the industry.
BB has a Return On Equity (-4.84%) which is comparable to the rest of the industry.
BB has a better Return On Invested Capital (1.83%) than 65.08% of its industry peers.
BB had an Average Return On Invested Capital over the past 3 years of 4.77%. This 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
Looking at the Operating Margin, with a value of 4.39%, BB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Gross Margin value of 72.65%, BB is doing good in the industry, outperforming 76.19% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BB is destroying value.
BB has more shares outstanding than it did 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
BB has an Altman-Z score of 1.18. 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 (1.18) 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.
BB has a Debt to FCF ratio (59.27) which is in line with its industry peers.
BB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.27, BB perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.19
WACC9.42%
2.3 Liquidity
A Current Ratio of 2.10 indicates that BB has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.10, BB is doing good in 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 has a Quick ratio of 2.10. This is in the better half 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.
The earnings per share for BB have been decreasing by -31.23% on average. This is quite bad
The Revenue for BB has decreased by -11.28% in the past year. This is quite bad
The Revenue for BB have been decreasing by -12.45% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 71.73% on average over the next years. This is a very strong growth
BB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
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
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
With a Price/Earnings ratio of 55.20, BB can be considered very expensive at the moment.
68.25% of the companies in the same industry are more expensive than BB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, BB is valued quite expensively.
The Price/Forward Earnings ratio is 27.55, which means the current valuation is very expensive for BB.
BB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BB is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BB to the average of the S&P500 Index (35.19), we can say BB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.2 | ||
| Fwd PE | 27.55 |
4.2 Price Multiples
BB's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 725.84 | ||
| EV/EBITDA | 36.53 |
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.
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 (7/11/2025, 7:00:00 PM)
5.52
-0.09 (-1.6%)
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 Cap3.28B
Analysts47.69
Price Target4.07 (-26.27%)
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)0%
PT rev (3m)-6.62%
EPS NQ rev (1m)-28.57%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.03%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.2 | ||
| Fwd PE | 27.55 | ||
| P/S | 4.33 | ||
| P/FCF | 725.84 | ||
| P/OCF | 177.43 | ||
| P/B | 3.3 | ||
| P/tB | 11.74 | ||
| EV/EBITDA | 36.53 |
EPS(TTM)0.1
EY1.81%
EPS(NY)0.2
Fwd EY3.63%
FCF(TTM)0.01
FCFY0.14%
OCF(TTM)0.03
OCFY0.56%
SpS1.28
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 | 1.18 |
F-Score6
WACC9.42%
ROIC/WACC0.19
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%