BLACKBERRY LTD (BB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BB - CA09228F1036 - Common Stock
4.08 USD
+0.01 (+0.25%)
4.08 USD
0 (0%)
Taking everything into account, BB scores 3 out of 10 in our fundamental rating. BB was compared to 280 industry peers in the Software industry. While BB seems to be doing ok healthwise, there are quite some concerns on its profitability. BB has a correct valuation and a medium 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 (-0.24%) which is comparable to the rest of the industry.
BB's Return On Equity of -0.39% is in line compared to the rest of the industry. BB outperforms 60.00% of its industry peers.
With a decent Return On Invested Capital value of 4.94%, BB is doing good in the industry, outperforming 73.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BB is significantly below the industry average of 12.00%.
| 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 76.43% of its industry peers.
With a decent Gross Margin value of 75.21%, BB is doing good in the industry, outperforming 66.79% 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 | 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.
BB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BB has been increased compared to 5 years ago.
The debt/assets ratio for BB is higher compared to a year ago.
2.2 Solvency
BB has an Altman-Z score of 1.42. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
BB has a Altman-Z score of 1.42. This is comparable to the rest of the industry: BB outperforms 42.50% of its industry peers.
The Debt to FCF ratio of BB is 8.52, which is on the high side as it means it would take BB, 8.52 years of fcf income to pay off all of its debts.
BB's Debt to FCF ratio of 8.52 is in line compared to the rest of the industry. BB outperforms 51.43% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that BB is not too dependend on debt financing.
BB has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: BB outperforms 43.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.5
WACC9.95%
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 65.36% of the companies in the same industry.
A Quick Ratio of 2.20 indicates that BB has no problem at all paying its short term obligations.
BB has a better Quick ratio (2.20) than 65.71% 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.
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 -15.51% in the last year.
BB shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.45% yearly.
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
The Earnings Per Share is expected to grow by 69.29% on average over the next years. This is a very strong growth
BB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y606.27%
EPS Next 2Y187.05%
EPS Next 3Y112%
EPS Next 5Y69.29%
Revenue Next Year-3.39%
Revenue Next 2Y1.84%
Revenue Next 3Y3.25%
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
The Price/Earnings ratio is 37.09, which means the current valuation is very expensive for BB.
BB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BB to the average of the S&P500 Index (26.31), we can say BB is valued slightly more expensively.
BB is valuated rather expensively with a Price/Forward Earnings ratio of 24.76.
Based on the Price/Forward Earnings ratio, BB is valued a bit cheaper than the industry average as 65.36% of the companies are valued more expensively.
BB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BB is valued a bit cheaper than 73.57% of the companies in the same industry.
BB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.72 | ||
| EV/EBITDA | 25.86 |
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 112.00% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y187.05%
EPS Next 3Y112%
5. Dividend
5.1 Amount
BB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.08
+0.01 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51%
Inst Owner Change-1.4%
Ins Owners0.24%
Ins Owner Change1.74%
Market Cap2.41B
Revenue(TTM)538.20M
Net Income(TTM)-2.80M
Analysts47.69
Price Target3.29 (-19.36%)
Short Float %3.7%
Short Ratio1.99
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)-0.29%
PT rev (3m)-3.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)26.67%
EPS NY rev (1m)46.94%
EPS NY rev (3m)45.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 24.76 | ||
| P/S | 4.48 | ||
| P/FCF | 104.72 | ||
| P/OCF | 79.23 | ||
| P/B | 3.32 | ||
| P/tB | 11.77 | ||
| EV/EBITDA | 25.86 |
EPS(TTM)0.11
EY2.7%
EPS(NY)0.16
Fwd EY4.04%
FCF(TTM)0.04
FCFY0.95%
OCF(TTM)0.05
OCFY1.26%
SpS0.91
BVpS1.23
TBVpS0.35
PEG (NY)0.06
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 | 1.42 |
F-Score6
WACC9.95%
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)1000%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%169.25%
EPS Next Y606.27%
EPS Next 2Y187.05%
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 2Y1.84%
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 3 / 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 606.27% in the next year.