BOMBARDIER INC-A (BBD-A.CA) Stock Fundamental Analysis
TSX:BBD-A - Toronto Stock Exchange - CA0977518798 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BBD-A. BBD-A was compared to 11 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of BBD-A while its profitability can be described as average. BBD-A is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BBD-A had positive earnings in the past year.
BBD-A had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BBD-A reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: BBD-A reported negative operating cash flow in multiple years.
1.2 Ratios
BBD-A's Return On Assets of 2.68% is on the low side compared to the rest of the industry. BBD-A is outperformed by 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.88%, BBD-A is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBD-A is in line with the industry average of 8.03%.
The 3 year average ROIC (8.03%) for BBD-A is below the current ROIC(9.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | N/A | ||
| ROIC | 9.88% |
ROA(3y)1.52%
ROA(5y)8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.03%
ROIC(5y)N/A
1.3 Margins
BBD-A's Profit Margin of 3.91% is in line compared to the rest of the industry. BBD-A outperforms 45.45% of its industry peers.
BBD-A's Profit Margin has declined in the last couple of years.
The Operating Margin of BBD-A (10.92%) is comparable to the rest of the industry.
BBD-A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.60%, BBD-A is doing worse than 72.73% of the companies in the same industry.
In the last couple of years the Gross Margin of BBD-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.92% | ||
| PM (TTM) | 3.91% | ||
| GM | 20.6% |
OM growth 3Y42.21%
OM growth 5Y20.26%
PM growth 3Y-63.79%
PM growth 5YN/A
GM growth 3Y10.7%
GM growth 5Y8.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BBD-A is creating some value.
The number of shares outstanding for BBD-A has been increased compared to 1 year ago.
BBD-A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BBD-A has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that BBD-A is in the distress zone and has some risk of bankruptcy.
BBD-A has a better Altman-Z score (0.66) than 72.73% of its industry peers.
The Debt to FCF ratio of BBD-A is 23.90, which is on the high side as it means it would take BBD-A, 23.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 23.90, BBD-A is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.08
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.10 indicates that BBD-A should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, BBD-A is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
A Quick Ratio of 0.40 indicates that BBD-A may have some problems paying its short term obligations.
BBD-A's Quick ratio of 0.40 is on the low side compared to the rest of the industry. BBD-A is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.81% over the past year.
BBD-A shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -59.76% yearly.
Looking at the last year, BBD-A shows a quite strong growth in Revenue. The Revenue has grown by 13.11% in the last year.
BBD-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)69.81%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%69.44%
Revenue 1Y (TTM)13.11%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%18.81%
3.2 Future
Based on estimates for the next years, BBD-A will show a very strong growth in Earnings Per Share. The EPS will grow by 20.40% on average per year.
The Revenue is expected to grow by 3.31% on average over the next years.
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y4.21%
Revenue Next 3Y3.31%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
BBD-A is valuated correctly with a Price/Earnings ratio of 12.39.
Based on the Price/Earnings ratio, BBD-A is valued a bit cheaper than 63.64% of the companies in the same industry.
BBD-A is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.69, the valuation of BBD-A can be described as reasonable.
Based on the Price/Forward Earnings ratio, BBD-A is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, BBD-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBD-A is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBD-A indicates a slightly more expensive valuation: BBD-A is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.85 | ||
| EV/EBITDA | 7.5 |
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.
BBD-A's earnings are expected to grow with 20.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y22.26%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
No dividends for BBD-A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-A (5/27/2025, 7:00:00 PM)
91.8
+1.01 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap9.18B
Analysts80.83
Price Target116.41 (26.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.31
Dividend Growth(5Y)92.86%
DP6.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.01%
Min EPS beat(2)-0.96%
Max EPS beat(2)42.98%
EPS beat(4)3
Avg EPS beat(4)24.05%
Min EPS beat(4)-0.96%
Max EPS beat(4)42.98%
EPS beat(8)6
Avg EPS beat(8)139.22%
EPS beat(12)10
Avg EPS beat(12)119.61%
EPS beat(16)14
Avg EPS beat(16)104.74%
Revenue beat(2)1
Avg Revenue beat(2)3.68%
Min Revenue beat(2)-5.24%
Max Revenue beat(2)12.6%
Revenue beat(4)2
Avg Revenue beat(4)1.62%
Min Revenue beat(4)-16.05%
Max Revenue beat(4)15.16%
Revenue beat(8)4
Avg Revenue beat(8)1.18%
Revenue beat(12)5
Avg Revenue beat(12)-1.38%
Revenue beat(16)8
Avg Revenue beat(16)-0.04%
PT rev (1m)-1.53%
PT rev (3m)0.3%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)-24.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.77 | ||
| P/FCF | 28.85 | ||
| P/OCF | 16.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.5 |
EPS(TTM)7.41
EY8.07%
EPS(NY)10.56
Fwd EY11.5%
FCF(TTM)3.18
FCFY3.47%
OCF(TTM)5.56
OCFY6.05%
SpS118.85
BVpS-27.31
TBVpS-72.9
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | N/A | ||
| ROCE | 13.72% | ||
| ROIC | 9.88% | ||
| ROICexc | 13.07% | ||
| ROICexgc | 36.08% | ||
| OM | 10.92% | ||
| PM (TTM) | 3.91% | ||
| GM | 20.6% | ||
| FCFM | 2.68% |
ROA(3y)1.52%
ROA(5y)8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.03%
ROIC(5y)N/A
ROICexc(3y)10.74%
ROICexc(5y)N/A
ROICexgc(3y)37.07%
ROICexgc(5y)N/A
ROCE(3y)11.15%
ROCE(5y)N/A
ROICexcg growth 3Y66.19%
ROICexcg growth 5Y-15.41%
ROICexc growth 3Y69.93%
ROICexc growth 5Y30.71%
OM growth 3Y42.21%
OM growth 5Y20.26%
PM growth 3Y-63.79%
PM growth 5YN/A
GM growth 3Y10.7%
GM growth 5Y8.18%
F-Score8
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 38.88% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 29.12% | ||
| Profit Quality | 68.44% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 0.66 |
F-Score8
WACC9.15%
ROIC/WACC1.08
Cap/Depr(3y)69.78%
Cap/Depr(5y)67.51%
Cap/Sales(3y)3.89%
Cap/Sales(5y)4.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)69.81%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%69.44%
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue 1Y (TTM)13.11%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%18.81%
Revenue Next Year5.38%
Revenue Next 2Y4.21%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
EBIT growth 1Y16.65%
EBIT growth 3Y59.99%
EBIT growth 5Y23.82%
EBIT Next Year76.58%
EBIT Next 3Y25.41%
EBIT Next 5YN/A
FCF growth 1Y-9.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.99%
OCF growth 3YN/A
OCF growth 5YN/A