BLACKBERRY LTD (BB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BB - CA09228F1036 - Common Stock
3.8 USD
+0.01 (+0.26%)
3.8 USD
0 (0%)
Overall BB gets a fundamental rating of 4 out of 10. We evaluated BB against 276 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
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 of -0.24%. This is comparable to the rest of the industry: BB outperforms 55.07% of its industry peers.
Looking at the Return On Equity, with a value of -0.39%, BB is in line with its industry, outperforming 58.33% of the companies in the same industry.
BB has a better Return On Invested Capital (4.94%) than 72.83% 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 10.78%.
| 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
The Operating Margin of BB (11.09%) is better than 77.17% of its industry peers.
BB has a Gross Margin of 75.21%. This is in the better half of the industry: BB outperforms 66.67% 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 | 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
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
Compared to 1 year ago, BB has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that BB is in the distress zone and has some risk of bankruptcy.
BB has a worse Altman-Z score (1.21) than 60.51% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 8.52, BB is in line with its industry, outperforming 51.81% 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.
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 | 8.52 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.5
WACC9.9%
2.3 Liquidity
A Current Ratio of 2.20 indicates that BB has no problem at all paying its short term obligations.
The Current ratio of BB (2.20) is better than 63.04% of its industry peers.
A Quick Ratio of 2.20 indicates that BB has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.20, BB is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
| 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 600.00%, 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 -29.53%.
The Revenue for BB have been decreasing by -12.45% on average. This is quite bad
EPS 1Y (TTM)600%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%150%
Revenue 1Y (TTM)-29.53%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-12.47%
3.2 Future
The Earnings Per Share is expected to grow by 69.29% on average over the next years. This is a very strong growth
Based on estimates for the next years, BB will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
EPS Next Y643.09%
EPS Next 2Y198.37%
EPS Next 3Y108.77%
EPS Next 5Y69.29%
Revenue Next Year-2.61%
Revenue Next 2Y2.51%
Revenue Next 3Y3.62%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.14, BB can be considered very expensive at the moment.
BB's Price/Earnings ratio is a bit cheaper when compared to the industry. BB is cheaper than 67.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. BB is around the same levels.
With a Price/Forward Earnings ratio of 21.34, BB is valued on the expensive side.
BB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BB is cheaper than 72.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 21.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BB is valued a bit cheaper than 74.64% of the companies 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 | 97.69 | ||
| EV/EBITDA | 24.04 |
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.
BB's earnings are expected to grow with 108.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y198.37%
EPS Next 3Y108.77%
5. Dividend
5.1 Amount
No dividends for BB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3.8
+0.01 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51%
Inst Owner Change-1.36%
Ins Owners0.24%
Ins Owner Change1.54%
Market Cap2.25B
Revenue(TTM)534.90M
Net Income(TTM)-2.80M
Analysts47.69
Price Target3.34 (-12.11%)
Short Float %3.56%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.55%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)26.67%
EPS NY rev (1m)5.21%
EPS NY rev (3m)54.6%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 21.34 | ||
| P/S | 4.17 | ||
| P/FCF | 97.69 | ||
| P/OCF | 73.91 | ||
| P/B | 3.1 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 24.04 |
EPS(TTM)0.14
EY3.68%
EPS(NY)0.18
Fwd EY4.69%
FCF(TTM)0.04
FCFY1.02%
OCF(TTM)0.05
OCFY1.35%
SpS0.91
BVpS1.23
TBVpS0.35
PEG (NY)0.04
PEG (5Y)N/A
Graham Number1.97
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 | 1.21 |
F-Score6
WACC9.9%
ROIC/WACC0.5
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)600%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%150%
EPS Next Y643.09%
EPS Next 2Y198.37%
EPS Next 3Y108.77%
EPS Next 5Y69.29%
Revenue 1Y (TTM)-29.53%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-12.47%
Revenue Next Year-2.61%
Revenue Next 2Y2.51%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
EBIT growth 1Y265.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year289.9%
EBIT Next 3Y74.69%
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.
Can you provide the valuation status for BLACKBERRY LTD?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the financial health for BB stock?
The financial health rating of BLACKBERRY LTD (BB) is 4 / 10.