BLACKBERRY LTD (BB) Stock Fundamental Analysis
NYSE:BB - CA09228F1036 - Common Stock
3.85 USD
+0.04 (+1.05%)
3.8203 USD
-0.03 (-0.77%)
Taking everything into account, BB scores 3 out of 10 in our fundamental rating. BB was compared to 282 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 is not valued too expensively and it also shows a decent growth rate.
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.
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 in line with its industry peers.
With a Return On Equity value of -4.84%, BB perfoms like the industry average, outperforming 55.67% of the companies in the same industry.
BB's Return On Invested Capital of 2.01% is fine compared to the rest of the industry. BB outperforms 67.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BB is significantly below the industry average of 11.98%.
| 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
BB's Operating Margin of 4.39% is fine compared to the rest of the industry. BB outperforms 68.44% of its industry peers.
BB has a better Gross Margin (72.65%) than 60.28% of its industry peers.
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
BB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
BB has an Altman-Z score of 1.02. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, BB is doing worse than 64.18% of the companies in the same 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 of 59.27. This is comparable to the rest of the industry: BB outperforms 48.23% 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 of 0.27. This is comparable to the rest of the industry: BB outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.2
WACC10.28%
2.3 Liquidity
BB has a Current Ratio of 2.10. This indicates that BB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BB (2.10) is better than 63.83% 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 64.54% 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
Looking at the last year, BB shows a very negative growth in Revenue. The Revenue has decreased by -11.28% in the last year.
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
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 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
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
Based on the Price/Earnings ratio of 55.00, the valuation of BB can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BB is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.14. BB is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 27.35, which means the current valuation is very expensive for BB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BB indicates a somewhat cheap valuation: BB is cheaper than 66.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. BB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55 | ||
| Fwd PE | 27.35 |
4.2 Price Multiples
70.21% of the companies in the same industry are more expensive than BB, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as BB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 693.62 | ||
| EV/EBITDA | 34.42 |
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 |
3.85
+0.04 (+1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners47%
Inst Owner Change7.43%
Ins Owners0.23%
Ins Owner Change1.46%
Market Cap2.29B
Analysts47.69
Price Target3.23 (-16.1%)
Short Float %6.16%
Short Ratio2.79
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)-0.73%
PT rev (3m)9.84%
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)3.33%
Revenue NY rev (3m)3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55 | ||
| Fwd PE | 27.35 | ||
| P/S | 4.13 | ||
| P/FCF | 693.62 | ||
| P/OCF | 169.55 | ||
| P/B | 3.16 | ||
| P/tB | 11.22 | ||
| EV/EBITDA | 34.42 |
EPS(TTM)0.07
EY1.82%
EPS(NY)0.14
Fwd EY3.66%
FCF(TTM)0.01
FCFY0.14%
OCF(TTM)0.02
OCFY0.59%
SpS0.93
BVpS1.22
TBVpS0.34
PEG (NY)0.14
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 | 1.02 |
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 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%