BLACKBERRY LTD (BB) Stock Fundamental Analysis
USA - NYSE:BB - CA09228F1036 - Common Stock
4.67 USD
-0.13 (-2.71%)
4.61 USD
-0.06 (-1.28%)
We assign a fundamental rating of 4 out of 10 to BB. BB was compared to 284 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 decent growth rate and is not valued too expensively.
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.
BB had negative earnings in 4 of the past 5 years.
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 (-0.24%) which is in line with its industry peers.
The Return On Equity of BB (-0.39%) is better than 60.56% of its industry peers.
BB has a better Return On Invested Capital (4.94%) than 73.59% 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 11.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.39% | ||
| ROIC | 4.94% |
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
BB has a better Operating Margin (11.09%) than 75.70% of its industry peers.
The Gross Margin of BB (75.21%) is better than 67.61% of its industry peers.
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.
BB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BB has more shares outstanding
BB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that BB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.89, BB perfoms like the industry average, outperforming 46.83% of the companies in the same industry.
BB has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as BB would need 8.52 years to pay back of all of its debts.
The Debt to FCF ratio of BB (8.52) 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.
With a Debt to Equity ratio value of 0.27, BB perfoms like the industry average, outperforming 43.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.49
WACC10.03%
2.3 Liquidity
A Current Ratio of 2.20 indicates that BB has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.20, BB is doing good in the industry, outperforming 65.14% of the companies in the same industry.
BB has a Quick Ratio of 2.20. This indicates that BB is financially healthy and has no problem in meeting its short term obligations.
BB has a better Quick ratio (2.20) than 65.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
BB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1000.00%, 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.
BB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.51%.
The Revenue for BB have been decreasing by -12.45% on average. This is quite bad
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.
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
BB is valuated quite expensively with a Price/Earnings ratio of 42.45.
The rest of the industry has a similar Price/Earnings ratio as BB.
BB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 33.17 indicates a quite expensive valuation of BB.
The rest of the industry has a similar Price/Forward Earnings ratio as BB.
When comparing the Price/Forward Earnings ratio of BB to the average of the S&P500 Index (22.27), we can say BB is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.45 | ||
| Fwd PE | 33.17 |
4.2 Price Multiples
73.94% of the companies in the same industry are more expensive than BB, based on the Enterprise Value to EBITDA ratio.
BB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.87 | ||
| EV/EBITDA | 29.86 |
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)0.11
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 |
4.67
-0.13 (-2.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51%
Inst Owner Change-0.01%
Ins Owners0.24%
Ins Owner Change1.74%
Market Cap2.76B
Revenue(TTM)538.20M
Net Income(TTM)-2800000
Analysts47.69
Price Target3.31 (-29.12%)
Short Float %4.31%
Short Ratio2.54
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)0.32%
PT rev (3m)1.45%
EPS NQ rev (1m)8.57%
EPS NQ rev (3m)26.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.45 | ||
| Fwd PE | 33.17 | ||
| P/S | 5.12 | ||
| P/FCF | 119.87 | ||
| P/OCF | 90.69 | ||
| P/B | 3.8 | ||
| P/tB | 13.47 | ||
| EV/EBITDA | 29.86 |
EPS(TTM)0.11
EY2.36%
EPS(NY)0.14
Fwd EY3.01%
FCF(TTM)0.04
FCFY0.83%
OCF(TTM)0.05
OCFY1.1%
SpS0.91
BVpS1.23
TBVpS0.35
PEG (NY)0.11
PEG (5Y)N/A
Graham Number1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -0.39% | ||
| ROCE | 6.26% | ||
| ROIC | 4.94% | ||
| ROICexc | 7.11% | ||
| ROICexgc | 33% | ||
| 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)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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.89 |
F-Score6
WACC10.03%
ROIC/WACC0.49
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%
BLACKBERRY LTD / BB FAQ
Can you provide the ChartMill fundamental rating for BLACKBERRY LTD?
ChartMill assigns a fundamental rating of 4 / 10 to BB.
What is the valuation status of BLACKBERRY LTD (BB) stock?
ChartMill assigns a valuation rating of 4 / 10 to BLACKBERRY LTD (BB). This can be considered as Fairly Valued.
What is the profitability of BB stock?
BLACKBERRY LTD (BB) has a profitability rating of 3 / 10.
What is the expected EPS growth for BLACKBERRY LTD (BB) stock?
The Earnings per Share (EPS) of BLACKBERRY LTD (BB) is expected to grow by 380.65% in the next year.