BLACKBERRY LTD (BB.CA) Stock Fundamental Analysis
TSX:BB - Toronto Stock Exchange - CA09228F1036 - Common Stock - Currency: CAD
Taking everything into account, BB scores 3 out of 10 in our fundamental rating. BB was compared to 63 industry peers in the Software industry. Both the profitability and financial health of BB have multiple concerns. BB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BB was profitable.
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
With a Return On Assets value of -6.10%, BB perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
The Return On Equity of BB (-10.97%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.1% | ||
| ROE | -10.97% | ||
| ROIC | N/A |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BB has a Gross Margin of 70.83%. This is in the better half of the industry: BB outperforms 73.02% of its industry peers.
In the last couple of years the Gross Margin of BB has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for BB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% |
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
BB does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
Compared to 1 year ago, BB has a worse debt to assets ratio.
2.2 Solvency
BB has an Altman-Z score of 0.84. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
BB has a Altman-Z score of 0.84. This is comparable to the rest of the industry: BB outperforms 44.44% of its industry peers.
The Debt to FCF ratio of BB is 30.52, which is on the high side as it means it would take BB, 30.52 years of fcf income to pay off all of its debts.
BB's Debt to FCF ratio of 30.52 is in line compared to the rest of the industry. BB outperforms 53.97% of 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.
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 | 30.52 | ||
| Altman-Z | 0.84 |
ROIC/WACCN/A
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.72 indicates that BB should not have too much problems paying its short term obligations.
BB's Current ratio of 1.72 is in line compared to the rest of the industry. BB outperforms 58.73% of its industry peers.
A Quick Ratio of 1.72 indicates that BB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, BB is in line with its industry, outperforming 58.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
BB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.67%.
BB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
Looking at the last year, BB shows a very negative growth in Revenue. The Revenue has decreased by -32.49% in the last year.
The Revenue for BB have been decreasing by -12.45% on average. This is quite bad
EPS 1Y (TTM)-66.67%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%0%
Revenue 1Y (TTM)-32.49%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-18.09%
3.2 Future
BB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.73% yearly.
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.
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
Based on the Price/Earnings ratio of 185.33, the valuation of BB can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BB.
The average S&P500 Price/Earnings ratio is at 26.31. BB is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 42.12, which means the current valuation is very expensive for BB.
69.84% of the companies in the same industry are more expensive than BB, based on the Price/Forward Earnings ratio.
BB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 185.33 | ||
| Fwd PE | 42.12 |
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 | 380.48 | ||
| EV/EBITDA | 63.53 |
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)0.48
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 (6/13/2025, 7:00:00 PM)
5.56
-0.15 (-2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners48.5%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap3.32B
Analysts47.69
Price Target4.07 (-26.8%)
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)169.92%
Min EPS beat(2)94.17%
Max EPS beat(2)245.67%
EPS beat(4)4
Avg EPS beat(4)117.83%
Min EPS beat(4)31.47%
Max EPS beat(4)245.67%
EPS beat(8)8
Avg EPS beat(8)130.97%
EPS beat(12)12
Avg EPS beat(12)97.7%
EPS beat(16)16
Avg EPS beat(16)88.83%
Revenue beat(2)2
Avg Revenue beat(2)4.24%
Min Revenue beat(2)3.57%
Max Revenue beat(2)4.9%
Revenue beat(4)3
Avg Revenue beat(4)9.5%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)29.99%
Revenue beat(8)5
Avg Revenue beat(8)20.92%
Revenue beat(12)6
Avg Revenue beat(12)13.43%
Revenue beat(16)8
Avg Revenue beat(16)10.04%
PT rev (1m)0%
PT rev (3m)1.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 185.33 | ||
| Fwd PE | 42.12 | ||
| P/S | 4.23 | ||
| P/FCF | 380.48 | ||
| P/OCF | 147.58 | ||
| P/B | 3.38 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 63.53 |
EPS(TTM)0.03
EY0.54%
EPS(NY)0.13
Fwd EY2.37%
FCF(TTM)0.01
FCFY0.26%
OCF(TTM)0.04
OCFY0.68%
SpS1.31
BVpS1.64
TBVpS0.46
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.1% | ||
| ROE | -10.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% | ||
| FCFM | 1.11% |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 30.52 | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 22.6% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 45.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 0.84 |
F-Score5
WACC7.44%
ROIC/WACCN/A
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)-66.67%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%0%
EPS Next Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
Revenue 1Y (TTM)-32.49%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-18.09%
Revenue Next Year-6.74%
Revenue Next 2Y0.89%
Revenue Next 3Y3.87%
Revenue Next 5YN/A
EBIT growth 1Y76.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year207.89%
EBIT Next 3Y70.11%
EBIT Next 5Y50.71%
FCF growth 1Y126.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y650%
OCF growth 3YN/A
OCF growth 5Y-8.69%