BLACKBERRY LTD (BB.CA) Stock Fundamental Analysis
Canada - TSX:BB - CA09228F1036 - Common Stock
5.4 CAD
+0.06 (+1.12%)
BB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BB had positive earnings in the past year.
In the past year BB had a positive cash flow from operations.
In the past 5 years BB reported 4 times negative net income.
In multiple years BB reported negative operating cash flow during the last 5 years.
1.2 Ratios
BB's Return On Assets of -2.90% is in line compared to the rest of the industry. BB outperforms 51.56% of its industry peers.
Looking at the Return On Equity, with a value of -4.84%, BB is in line with its industry, outperforming 54.69% of the companies in the same industry.
BB's Return On Invested Capital of 1.83% is fine compared to the rest of the industry. BB outperforms 65.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BB is significantly below the industry average of 12.21%.
| 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
The Operating Margin of BB (4.39%) is better than 70.31% of its industry peers.
BB's Gross Margin of 72.65% is fine compared to the rest of the industry. BB outperforms 75.00% of its industry peers.
BB's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, BB has more shares outstanding
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 1.09. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
BB's Altman-Z score of 1.09 is in line compared to the rest of the industry. BB outperforms 45.31% of its industry peers.
BB has a debt to FCF ratio of 59.27. This is a negative value and a sign of low solvency as BB would need 59.27 years to pay back of all of its debts.
BB has a Debt to FCF ratio (59.27) which is comparable to the rest of the industry.
BB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, BB is in line with its industry, outperforming 53.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.18
WACC10.24%
2.3 Liquidity
A Current Ratio of 2.10 indicates that BB has no problem at all paying its short term obligations.
BB has a better Current ratio (2.10) than 70.31% of its industry peers.
A Quick Ratio of 2.10 indicates that BB has no problem at all paying its short term obligations.
BB has a better Quick ratio (2.10) than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
BB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 333.33%, which is quite impressive.
The earnings per share for BB have been decreasing by -31.23% on average. This is quite bad
Looking at the last year, BB shows a very negative growth in Revenue. The Revenue has decreased by -11.28% in the last year.
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
BB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 69.29% yearly.
BB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y380.65%
EPS Next 2Y165.3%
EPS Next 3Y110.07%
EPS Next 5Y69.29%
Revenue Next Year-3.64%
Revenue Next 2Y1.56%
Revenue Next 3Y4.43%
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.
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
The Price/Earnings ratio is 54.00, which means the current valuation is very expensive for BB.
71.88% of the companies in the same industry are more expensive than BB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BB to the average of the S&P500 Index (27.27), we can say BB is valued expensively.
BB is valuated quite expensively with a Price/Forward Earnings ratio of 27.70.
71.88% of the companies in the same industry are more expensive than BB, based on the Price/Forward Earnings ratio.
BB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 27.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BB is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 702.54 | ||
| EV/EBITDA | 35.28 |
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.
A more expensive valuation may be justified as BB's earnings are expected to grow with 110.07% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y165.3%
EPS Next 3Y110.07%
5. Dividend
5.1 Amount
No dividends for BB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BB (9/12/2025, 7:00:00 PM)
5.4
+0.06 (+1.12%)
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 Cap3.21B
Analysts47.69
Price Target4.48 (-17.04%)
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)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 27.7 | ||
| P/S | 4.19 | ||
| P/FCF | 702.54 | ||
| P/OCF | 171.73 | ||
| P/B | 3.2 | ||
| P/tB | 11.36 | ||
| EV/EBITDA | 35.28 |
EPS(TTM)0.1
EY1.85%
EPS(NY)0.19
Fwd EY3.61%
FCF(TTM)0.01
FCFY0.14%
OCF(TTM)0.03
OCFY0.58%
SpS1.29
BVpS1.69
TBVpS0.48
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 | 1.09 |
F-Score6
WACC10.24%
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 Y380.65%
EPS Next 2Y165.3%
EPS Next 3Y110.07%
EPS Next 5Y69.29%
Revenue 1Y (TTM)-11.28%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-15.49%
Revenue Next Year-3.64%
Revenue Next 2Y1.56%
Revenue Next 3Y4.43%
Revenue Next 5YN/A
EBIT growth 1Y141.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year207.89%
EBIT Next 3Y66.85%
EBIT Next 5Y48.75%
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%