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BOMBARDIER INC-A (BBD-A.CA) Stock Fundamental Analysis

TSX:BBD-A - Toronto Stock Exchange - CA0977518798 - Common Stock - Currency: CAD

85.56  +0.01 (+0.01%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to BBD-A. BBD-A was compared to 12 industry peers in the Aerospace & Defense industry. While BBD-A is still in line with the averages on profitability rating, there are concerns on its financial health. BBD-A has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year BBD-A was profitable.
BBD-A had a positive operating cash flow in the past year.
In multiple years BBD-A reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: BBD-A reported negative operating cash flow in multiple years.
BBD-A.CA Yearly Net Income VS EBIT VS OCF VS FCFBBD-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B

1.2 Ratios

With a Return On Assets value of 3.39%, BBD-A perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
BBD-A has a Return On Invested Capital (9.02%) which is in line with its industry peers.
BBD-A had an Average Return On Invested Capital over the past 3 years of 5.43%. This is in line with the industry average of 7.19%.
The last Return On Invested Capital (9.02%) for BBD-A is above the 3 year average (5.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.39%
ROE N/A
ROIC 9.02%
ROA(3y)13.72%
ROA(5y)6.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.43%
ROIC(5y)N/A
BBD-A.CA Yearly ROA, ROE, ROICBBD-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 -150

1.3 Margins

With a Profit Margin value of 4.99%, BBD-A perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
BBD-A's Profit Margin has improved in the last couple of years.
The Operating Margin of BBD-A (10.11%) is comparable to the rest of the industry.
BBD-A's Operating Margin has improved in the last couple of years.
BBD-A has a Gross Margin of 19.98%. This is amonst the worse of the industry: BBD-A underperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of BBD-A has grown nicely.
Industry RankSector Rank
OM 10.11%
PM (TTM) 4.99%
GM 19.98%
OM growth 3YN/A
OM growth 5Y12.58%
PM growth 3YN/A
PM growth 5Y28.76%
GM growth 3Y36.59%
GM growth 5Y7.64%
BBD-A.CA Yearly Profit, Operating, Gross MarginsBBD-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BBD-A is destroying value.
BBD-A has more shares outstanding than it did 1 year ago.
BBD-A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BBD-A has an improved debt to assets ratio.
BBD-A.CA Yearly Shares OutstandingBBD-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
BBD-A.CA Yearly Total Debt VS Total AssetsBBD-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

2.2 Solvency

BBD-A has an Altman-Z score of 0.57. This is a bad value and indicates that BBD-A is not financially healthy and even has some risk of bankruptcy.
BBD-A's Altman-Z score of 0.57 is fine compared to the rest of the industry. BBD-A outperforms 63.64% of its industry peers.
The Debt to FCF ratio of BBD-A is 88.66, which is on the high side as it means it would take BBD-A, 88.66 years of fcf income to pay off all of its debts.
BBD-A has a worse Debt to FCF ratio (88.66) than 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 88.66
Altman-Z 0.57
ROIC/WACC0.96
WACC9.42%
BBD-A.CA Yearly LT Debt VS Equity VS FCFBBD-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

2.3 Liquidity

BBD-A has a Current Ratio of 1.06. This is a normal value and indicates that BBD-A is financially healthy and should not expect problems in meeting its short term obligations.
BBD-A's Current ratio of 1.06 is on the low side compared to the rest of the industry. BBD-A is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.27 indicates that BBD-A may have some problems paying its short term obligations.
BBD-A has a worse Quick ratio (0.27) than 90.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.27
BBD-A.CA Yearly Current Assets VS Current LiabilitesBBD-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

4

3. Growth

3.1 Past

BBD-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.70%.
The Earnings Per Share has been growing slightly by 3.61% on average over the past years.
The Revenue has grown by 12.83% in the past year. This is quite good.
The Revenue for BBD-A have been decreasing by -13.10% on average. This is quite bad
EPS 1Y (TTM)-23.7%
EPS 3YN/A
EPS 5Y3.61%
EPS Q2Q%1.37%
Revenue 1Y (TTM)12.83%
Revenue growth 3Y7.44%
Revenue growth 5Y-13.1%
Sales Q2Q%11.69%

3.2 Future

The Earnings Per Share is expected to grow by 27.75% on average over the next years. This is a very strong growth
Based on estimates for the next years, BBD-A will show a small growth in Revenue. The Revenue will grow by 6.50% on average per year.
EPS Next Y11.18%
EPS Next 2Y33.8%
EPS Next 3Y27.75%
EPS Next 5YN/A
Revenue Next Year11.48%
Revenue Next 2Y8.81%
Revenue Next 3Y6.5%
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.
BBD-A.CA Yearly Revenue VS EstimatesBBD-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B 20B
BBD-A.CA Yearly EPS VS EstimatesBBD-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5 -5 -10 -15

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.08 indicates a rather expensive valuation of BBD-A.
Based on the Price/Earnings ratio, BBD-A is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
BBD-A is valuated rather cheaply when we compare the Price/Earnings ratio to 28.35, which is the current average of the S&P500 Index.
BBD-A is valuated reasonably with a Price/Forward Earnings ratio of 8.63.
BBD-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBD-A is cheaper than 63.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBD-A to the average of the S&P500 Index (95.00), we can say BBD-A is valued rather cheaply.
Industry RankSector Rank
PE 17.08
Fwd PE 8.63
BBD-A.CA Price Earnings VS Forward Price EarningsBBD-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBD-A is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BBD-A is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 93.66
EV/EBITDA 7.99
BBD-A.CA Per share dataBBD-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100

4.3 Compensation for Growth

BBD-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BBD-A's earnings are expected to grow with 27.75% in the coming years.
PEG (NY)1.53
PEG (5Y)4.73
EPS Next 2Y33.8%
EPS Next 3Y27.75%

0

5. Dividend

5.1 Amount

BBD-A does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

BOMBARDIER INC-A

TSX:BBD-A (2/5/2025, 7:00:00 PM)

85.56

+0.01 (+0.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners23.69%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap8.56B
Analysts80
Price Target122.79 (43.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.23
Dividend Growth(5Y)91.88%
DP5.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.04%
Min EPS beat(2)-0.96%
Max EPS beat(2)29.03%
EPS beat(4)2
Avg EPS beat(4)12.38%
Min EPS beat(4)-3.71%
Max EPS beat(4)29.03%
EPS beat(8)6
Avg EPS beat(8)161.74%
EPS beat(12)10
Avg EPS beat(12)133.07%
EPS beat(16)13
Avg EPS beat(16)90.4%
Revenue beat(2)2
Avg Revenue beat(2)13.88%
Min Revenue beat(2)12.6%
Max Revenue beat(2)15.16%
Revenue beat(4)3
Avg Revenue beat(4)3.78%
Min Revenue beat(4)-16.05%
Max Revenue beat(4)15.16%
Revenue beat(8)5
Avg Revenue beat(8)1.94%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)9
Avg Revenue beat(16)1.74%
PT rev (1m)0.15%
PT rev (3m)2.68%
EPS NQ rev (1m)-3.96%
EPS NQ rev (3m)-0.72%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)-2.25%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)1.58%
Valuation
Industry RankSector Rank
PE 17.08
Fwd PE 8.63
P/S 0.7
P/FCF 93.66
P/OCF 21.03
P/B N/A
P/tB N/A
EV/EBITDA 7.99
EPS(TTM)5.01
EY5.86%
EPS(NY)9.91
Fwd EY11.59%
FCF(TTM)0.91
FCFY1.07%
OCF(TTM)4.07
OCFY4.75%
SpS123.02
BVpS-28.49
TBVpS-77.56
PEG (NY)1.53
PEG (5Y)4.73
Profitability
Industry RankSector Rank
ROA 3.39%
ROE N/A
ROCE 12.52%
ROIC 9.02%
ROICexc 10.39%
ROICexgc 24.14%
OM 10.11%
PM (TTM) 4.99%
GM 19.98%
FCFM 0.74%
ROA(3y)13.72%
ROA(5y)6.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.43%
ROIC(5y)N/A
ROICexc(3y)7.27%
ROICexc(5y)N/A
ROICexgc(3y)27.66%
ROICexgc(5y)N/A
ROCE(3y)7.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y13.9%
ROICexc growth 3YN/A
ROICexc growth 5Y11.22%
OM growth 3YN/A
OM growth 5Y12.58%
PM growth 3YN/A
PM growth 5Y28.76%
GM growth 3Y36.59%
GM growth 5Y7.64%
F-Score7
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 88.66
Debt/EBITDA 4.15
Cap/Depr 47.22%
Cap/Sales 2.56%
Interest Coverage 1.95
Cash Conversion 21.28%
Profit Quality 14.88%
Current Ratio 1.06
Quick Ratio 0.27
Altman-Z 0.57
F-Score7
WACC9.42%
ROIC/WACC0.96
Cap/Depr(3y)75.77%
Cap/Depr(5y)85.89%
Cap/Sales(3y)4.53%
Cap/Sales(5y)5.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.7%
EPS 3YN/A
EPS 5Y3.61%
EPS Q2Q%1.37%
EPS Next Y11.18%
EPS Next 2Y33.8%
EPS Next 3Y27.75%
EPS Next 5YN/A
Revenue 1Y (TTM)12.83%
Revenue growth 3Y7.44%
Revenue growth 5Y-13.1%
Sales Q2Q%11.69%
Revenue Next Year11.48%
Revenue Next 2Y8.81%
Revenue Next 3Y6.5%
Revenue Next 5YN/A
EBIT growth 1Y18.66%
EBIT growth 3YN/A
EBIT growth 5Y-2.17%
EBIT Next Year75.16%
EBIT Next 3Y28.58%
EBIT Next 5YN/A
FCF growth 1Y-92.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-75.3%
OCF growth 3YN/A
OCF growth 5Y0.86%