BLACKBERRY LTD (BB) Stock Fundamental Analysis
USA - NYSE:BB - CA09228F1036 - Common Stock
4.21 USD
+0.01 (+0.24%)
4.22 USD
+0.01 (+0.24%)
We assign a fundamental rating of 3 out of 10 to BB. BB was compared to 281 industry peers in the Software industry. While BB seems to be doing ok healthwise, 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.
BB had a positive operating cash flow in the past year.
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 (-2.90%) which is in line with its industry peers.
BB's Return On Equity of -4.84% is in line compared to the rest of the industry. BB outperforms 55.16% of its industry peers.
BB has a better Return On Invested Capital (2.01%) than 66.90% 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 11.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.9% | ||
| ROE | -4.84% | ||
| ROIC | 2.01% |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)5.23%
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 67.97% of the companies in the same industry.
BB has a Gross Margin of 72.65%. This is comparable to the rest of the industry: BB outperforms 59.79% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, BB has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that BB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BB (1.31) is worse than 62.63% 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 in line with 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.2
WACC10.28%
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 64.77% of the companies in the same industry.
BB has a Quick Ratio of 2.10. This indicates that BB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.10, BB is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
| 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.
Measured over the past years, BB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.23% on average per year.
The Revenue for BB has decreased by -11.28% 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)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.
The Revenue is expected to grow by 4.43% on average over the next years.
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
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
A Price/Earnings ratio of 60.14 indicates a quite expensive valuation of BB.
The rest of the industry has a similar Price/Earnings ratio as BB.
BB is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
BB is valuated quite expensively with a Price/Forward Earnings ratio of 29.91.
61.57% of the companies in the same industry are more expensive than BB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.86. BB is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.14 | ||
| Fwd PE | 29.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BB indicates a somewhat cheap valuation: BB is cheaper than 69.39% of the companies listed in the same industry.
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 | 758.48 | ||
| EV/EBITDA | 38.27 |
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 110.07% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y165.3%
EPS Next 3Y110.07%
5. Dividend
5.1 Amount
BB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.21
+0.01 (+0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51%
Inst Owner Change7.43%
Ins Owners0.24%
Ins Owner Change1.46%
Market Cap2.50B
Analysts47.69
Price Target3.24 (-23.04%)
Short Float %5.92%
Short Ratio4.64
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)-4.84%
PT rev (3m)9.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)0%
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 | 60.14 | ||
| Fwd PE | 29.91 | ||
| P/S | 4.52 | ||
| P/FCF | 758.48 | ||
| P/OCF | 185.41 | ||
| P/B | 3.45 | ||
| P/tB | 12.27 | ||
| EV/EBITDA | 38.27 |
EPS(TTM)0.07
EY1.66%
EPS(NY)0.14
Fwd EY3.34%
FCF(TTM)0.01
FCFY0.13%
OCF(TTM)0.02
OCFY0.54%
SpS0.93
BVpS1.22
TBVpS0.34
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.9% | ||
| ROE | -4.84% | ||
| ROCE | 2.54% | ||
| ROIC | 2.01% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 14.85% | ||
| 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)5.23%
ROIC(5y)N/A
ROICexc(3y)8.17%
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 | 1.31 |
F-Score6
WACC10.28%
ROIC/WACC0.2
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 Year215.29%
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%