BLACKBERRY LTD (BB) Stock Fundamental Analysis
NYSE:BB - New York Stock Exchange, Inc. - CA09228F1036 - Common Stock - Currency: USD
BB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While BB seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
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's Return On Assets of -2.90% is in line compared to the rest of the industry. BB outperforms 56.03% of its industry peers.
BB has a Return On Equity (-4.84%) which is in line with its industry peers.
BB has a Return On Invested Capital of 2.01%. This is in the better half of the industry: BB outperforms 70.21% of its industry peers.
BB had an Average Return On Invested Capital over the past 3 years of 5.23%. This is significantly below the industry average of 12.11%.
| 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 71.28% of the companies in the same industry.
With a decent Gross Margin value of 72.65%, BB is doing good in the industry, outperforming 60.99% of the companies in the same industry.
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
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.
Compared to 5 years ago, BB has more shares outstanding
BB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that BB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.99, BB is not doing good in the industry: 61.35% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 59.27, BB perfoms like the industry average, outperforming 47.16% of the companies in the same 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 42.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 59.27 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.22
WACC9.16%
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.
BB has a better Current ratio (2.10) than 63.48% of its industry peers.
A Quick Ratio of 2.10 indicates that BB has no problem at all paying 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 64.18% of the companies in the same industry.
| 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.
BB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
BB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.28%.
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
Based on estimates for the next years, BB will show a very strong growth in Earnings Per Share. The EPS will grow by 71.73% on average per year.
The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
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 52.64, the valuation of BB can be described as expensive.
BB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, BB is valued quite expensively.
BB is valuated quite expensively with a Price/Forward Earnings ratio of 25.19.
BB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BB is cheaper than 68.44% of the companies in the same industry.
BB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.64 | ||
| Fwd PE | 25.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BB is valued a bit cheaper than the industry average as 71.99% of the companies are valued more expensively.
BB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 663.89 | ||
| EV/EBITDA | 34.03 |
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.
BB's earnings are expected to grow with 113.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
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 |
NYSE:BB (8/5/2025, 10:33:06 AM)
3.685
-0.08 (-2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners47%
Inst Owner Change-1.28%
Ins Owners0.23%
Ins Owner Change1.46%
Market Cap2.19B
Analysts47.69
Price Target3.26 (-11.53%)
Short Float %6.25%
Short Ratio2.6
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)9.57%
PT rev (3m)10.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)3.33%
Revenue NY rev (3m)3.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.64 | ||
| Fwd PE | 25.19 | ||
| P/S | 3.96 | ||
| P/FCF | 663.89 | ||
| P/OCF | 162.28 | ||
| P/B | 3.02 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 34.03 |
EPS(TTM)0.07
EY1.9%
EPS(NY)0.15
Fwd EY3.97%
FCF(TTM)0.01
FCFY0.15%
OCF(TTM)0.02
OCFY0.62%
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 | 0.99 |
F-Score6
WACC9.16%
ROIC/WACC0.22
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 Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
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 3Y70.11%
EBIT Next 5Y50.71%
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%