BLACKBERRY LTD (BB) Stock Fundamental Analysis
NYSE:BB - New York Stock Exchange, Inc. - CA09228F1036 - Common Stock - Currency: USD
Overall BB gets a fundamental rating of 3 out of 10. We evaluated BB against 282 industry peers in the Software industry. Both the profitability and financial health of BB have multiple concerns. 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.
In the past 5 years BB reported 4 times negative net income.
In multiple years BB reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BB (-6.10%) is comparable to the rest of the industry.
BB has a Return On Equity (-10.97%) which is in line with its industry peers.
| 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
The Gross Margin of BB (70.83%) is comparable to the rest of the industry.
BB's Gross Margin has been stable in the last couple of years.
BB does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, BB has more shares outstanding
Compared to 5 years ago, BB has more shares outstanding
The debt/assets ratio for BB is higher compared to a year ago.
2.2 Solvency
BB has an Altman-Z score of 0.80. This is a bad value and indicates that BB is not financially healthy and even has some risk of bankruptcy.
BB's Altman-Z score of 0.80 is on the low side compared to the rest of the industry. BB is outperformed by 65.96% of its industry peers.
The Debt to FCF ratio of BB is 30.52, which is on the high side as it means it would take BB, 30.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BB (30.52) is comparable to the rest of the industry.
BB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
BB's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. BB outperforms 42.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 30.52 | ||
| Altman-Z | 0.8 |
ROIC/WACCN/A
WACC9.53%
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 53.19% 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.
With a Quick ratio value of 1.72, BB perfoms like the industry average, outperforming 53.90% 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.
BB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
The Revenue for BB has decreased by -32.49% in the past year. This is quite bad
The Revenue for BB have been decreasing by -12.45% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 71.73% 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 3.87% on average per year.
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
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
The Price/Earnings ratio is 204.50, which means the current valuation is very expensive for BB.
BB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.17, BB is valued quite expensively.
With a Price/Forward Earnings ratio of 42.24, BB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BB is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 204.5 | ||
| Fwd PE | 42.24 |
4.2 Price Multiples
BB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BB is cheaper than 63.83% 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 | 381.58 | ||
| EV/EBITDA | 62.57 |
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)0.53
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 |
4.09
-0.04 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners48.5%
Inst Owner Change0.31%
Ins Owners0.26%
Ins Owner Change2.18%
Market Cap2.44B
Analysts47.69
Price Target2.94 (-28.12%)
Short Float %5.4%
Short Ratio1.94
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)-2.83%
PT rev (3m)5.66%
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)-6.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 204.5 | ||
| Fwd PE | 42.24 | ||
| P/S | 4.24 | ||
| P/FCF | 381.58 | ||
| P/OCF | 148.01 | ||
| P/B | 3.39 | ||
| P/tB | 12.2 | ||
| EV/EBITDA | 62.57 |
EPS(TTM)0.02
EY0.49%
EPS(NY)0.1
Fwd EY2.37%
FCF(TTM)0.01
FCFY0.26%
OCF(TTM)0.03
OCFY0.68%
SpS0.96
BVpS1.21
TBVpS0.34
PEG (NY)0.53
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 | 0.8 |
F-Score5
WACC9.53%
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 3Y70.14%
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%