BLACKBERRY LTD (BB) Stock Fundamental Analysis
NYSE:BB - New York Stock Exchange, Inc. - CA09228F1036 - Common Stock - Currency: USD
Taking everything into account, BB scores 3 out of 10 in our fundamental rating. BB was compared to 284 industry peers in the Software industry. BB has a bad profitability rating. Also its financial health evaluation is rather negative. BB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BB was profitable.
In the past year BB had a positive cash flow from operations.
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 (-6.10%) which is comparable to the rest of the industry.
The Return On Equity of BB (-10.97%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.1% | ||
| ROE | -10.97% | ||
| ROIC | N/A |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BB's Gross Margin of 70.83% is in line compared to the rest of the industry. BB outperforms 56.34% of its industry peers.
BB's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for BB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
BB has a worse debt/assets ratio than last year.
2.2 Solvency
BB has an Altman-Z score of 0.91. 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 0.91, BB is doing worse than 62.32% of the companies in the same industry.
BB has a debt to FCF ratio of 30.52. This is a negative value and a sign of low solvency as BB would need 30.52 years to pay back of all of its debts.
BB has a Debt to FCF ratio of 30.52. This is comparable to the rest of the industry: BB outperforms 48.24% 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.
With a Debt to Equity ratio value of 0.27, BB perfoms like the industry average, outperforming 42.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.91 |
ROIC/WACCN/A
WACC7.37%
2.3 Liquidity
BB has a Current Ratio of 1.72. This is a normal value and indicates that BB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.72, BB perfoms like the industry average, outperforming 53.87% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that BB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, BB is in line with its industry, outperforming 54.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The earnings per share for BB have decreased strongly by -66.67% in the last year.
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.
Looking at the last year, BB shows a very negative growth in Revenue. The Revenue has decreased by -32.49% in the last year.
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)-66.67%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%0%
Revenue 1Y (TTM)-32.49%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-18.09%
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 3.87% 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-6.74%
Revenue Next 2Y0.89%
Revenue Next 3Y3.87%
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
Based on the Price/Earnings ratio of 215.00, the valuation of BB can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BB.
Compared to an average S&P500 Price/Earnings ratio of 26.32, BB is valued quite expensively.
BB is valuated quite expensively with a Price/Forward Earnings ratio of 44.41.
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 (22.19), we can say BB is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 215 | ||
| Fwd PE | 44.41 |
4.2 Price Multiples
BB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BB is cheaper than 61.97% of the companies in the same industry.
BB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 401.18 | ||
| EV/EBITDA | 65.39 |
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 113.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y170.43%
EPS Next 3Y113.89%
5. Dividend
5.1 Amount
No dividends for BB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.3
-0.04 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners47%
Inst Owner Change0.31%
Ins Owners0.23%
Ins Owner Change2.18%
Market Cap2.57B
Analysts47.69
Price Target2.96 (-31.16%)
Short Float %5.85%
Short Ratio2.59
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)169.92%
Min EPS beat(2)94.17%
Max EPS beat(2)245.67%
EPS beat(4)4
Avg EPS beat(4)117.83%
Min EPS beat(4)31.47%
Max EPS beat(4)245.67%
EPS beat(8)8
Avg EPS beat(8)130.97%
EPS beat(12)12
Avg EPS beat(12)97.7%
EPS beat(16)16
Avg EPS beat(16)88.83%
Revenue beat(2)2
Avg Revenue beat(2)4.24%
Min Revenue beat(2)3.57%
Max Revenue beat(2)4.9%
Revenue beat(4)3
Avg Revenue beat(4)9.5%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)29.99%
Revenue beat(8)5
Avg Revenue beat(8)20.92%
Revenue beat(12)6
Avg Revenue beat(12)13.43%
Revenue beat(16)8
Avg Revenue beat(16)10.04%
PT rev (1m)0.57%
PT rev (3m)7.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 215 | ||
| Fwd PE | 44.41 | ||
| P/S | 4.46 | ||
| P/FCF | 401.18 | ||
| P/OCF | 155.61 | ||
| P/B | 3.57 | ||
| P/tB | 12.82 | ||
| EV/EBITDA | 65.39 |
EPS(TTM)0.02
EY0.47%
EPS(NY)0.1
Fwd EY2.25%
FCF(TTM)0.01
FCFY0.25%
OCF(TTM)0.03
OCFY0.64%
SpS0.96
BVpS1.21
TBVpS0.34
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.1% | ||
| ROE | -10.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.83% | ||
| FCFM | 1.11% |
ROA(3y)-19.72%
ROA(5y)-19.58%
ROE(3y)-37.82%
ROE(5y)-37.22%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 30.52 | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 22.6% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 45.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 0.91 |
F-Score5
WACC7.37%
ROIC/WACCN/A
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)-66.67%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%0%
EPS Next Y384.1%
EPS Next 2Y170.43%
EPS Next 3Y113.89%
EPS Next 5Y71.73%
Revenue 1Y (TTM)-32.49%
Revenue growth 3Y-9.35%
Revenue growth 5Y-12.45%
Sales Q2Q%-18.09%
Revenue Next Year-6.74%
Revenue Next 2Y0.89%
Revenue Next 3Y3.87%
Revenue Next 5YN/A
EBIT growth 1Y76.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year207.89%
EBIT Next 3Y70.11%
EBIT Next 5Y50.71%
FCF growth 1Y126.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y650%
OCF growth 3YN/A
OCF growth 5Y-8.69%