BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis
TSX:BBD-B - CA0977518616 - Common Stock
166.33 CAD
+1.9 (+1.16%)
We assign a fundamental rating of 4 out of 10 to BBD-B. BBD-B was compared to 12 industry peers in the Aerospace & Defense industry. While BBD-B is still in line with the averages on profitability rating, there are concerns on its financial health. BBD-B has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BBD-B had positive earnings in the past year.
BBD-B had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BBD-B reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: BBD-B reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 3.43%, BBD-B perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BBD-B has a Return On Invested Capital of 10.19%. This is in the better half of the industry: BBD-B outperforms 66.67% of its industry peers.
BBD-B had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 8.31%.
The last Return On Invested Capital (10.19%) for BBD-B is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | N/A | ||
| ROIC | 10.19% |
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-B has a Profit Margin of 4.97%. This is comparable to the rest of the industry: BBD-B outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of BBD-B has declined.
BBD-B's Operating Margin of 11.18% is in line compared to the rest of the industry. BBD-B outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of BBD-B has grown nicely.
With a Gross Margin value of 20.08%, BBD-B is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BBD-B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 4.97% | ||
| GM | 20.08% |
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-B is creating some value.
BBD-B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BBD-B has been reduced compared to 5 years ago.
BBD-B has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that BBD-B is in the distress zone and has some risk of bankruptcy.
BBD-B has a better Altman-Z score (0.89) than 75.00% of its industry peers.
The Debt to FCF ratio of BBD-B is 25.44, which is on the high side as it means it would take BBD-B, 25.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 25.44, BBD-B perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 25.44 | ||
| Altman-Z | 0.89 |
ROIC/WACC1.09
WACC9.31%
2.3 Liquidity
BBD-B has a Current Ratio of 1.10. This is a normal value and indicates that BBD-B is financially healthy and should not expect problems in meeting its short term obligations.
BBD-B has a worse Current ratio (1.10) than 66.67% of its industry peers.
A Quick Ratio of 0.40 indicates that BBD-B may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, BBD-B is doing worse than 83.33% of the companies in the same industry.
| 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 56.29% over the past year.
Measured over the past years, BBD-B shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -59.76% on average per year.
Looking at the last year, BBD-B shows a small growth in Revenue. The Revenue has grown by 3.92% in the last year.
Measured over the past years, BBD-B shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
EPS 1Y (TTM)56.29%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%6.73%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%-7.94%
3.2 Future
The Earnings Per Share is expected to grow by 20.84% on average over the next years. This is a very strong growth
BBD-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y25.95%
EPS Next 2Y24.23%
EPS Next 3Y20.84%
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y5.12%
Revenue Next 3Y4.33%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.97, the valuation of BBD-B can be described as rather expensive.
BBD-B's Price/Earnings ratio is a bit cheaper when compared to the industry. BBD-B is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. BBD-B is around the same levels.
BBD-B is valuated correctly with a Price/Forward Earnings ratio of 15.12.
BBD-B's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, BBD-B is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
BBD-B's Enterprise Value to EBITDA is on the same level as the industry average.
BBD-B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.23 | ||
| EV/EBITDA | 11.31 |
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 BBD-B's earnings are expected to grow with 20.84% in the coming years.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y24.23%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
BBD-B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-B (8/26/2025, 7:00:00 PM)
166.33
+1.9 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners32.8%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap16.67B
Analysts80.83
Price Target176.24 (5.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.31
Dividend Growth(5Y)92.86%
DP4.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.12%
Min EPS beat(2)-10.15%
Max EPS beat(2)1.92%
EPS beat(4)2
Avg EPS beat(4)8.45%
Min EPS beat(4)-10.15%
Max EPS beat(4)42.98%
EPS beat(8)5
Avg EPS beat(8)17.29%
EPS beat(12)9
Avg EPS beat(12)117.36%
EPS beat(16)13
Avg EPS beat(16)103.59%
Revenue beat(2)0
Avg Revenue beat(2)-5.28%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)-5.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)12.6%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.83%
PT rev (1m)24.24%
PT rev (3m)51.38%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.38 | ||
| P/FCF | 55.23 | ||
| P/OCF | 31.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.31 |
EPS(TTM)7.57
EY4.55%
EPS(NY)11
Fwd EY6.62%
FCF(TTM)3.01
FCFY1.81%
OCF(TTM)5.25
OCFY3.16%
SpS120.61
BVpS-27.5
TBVpS-73.42
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | N/A | ||
| ROCE | 14.16% | ||
| ROIC | 10.19% | ||
| ROICexc | 13.48% | ||
| ROICexgc | 37.22% | ||
| OM | 11.18% | ||
| PM (TTM) | 4.97% | ||
| GM | 20.08% | ||
| FCFM | 2.5% |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 25.44 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 38.03% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 27.1% | ||
| Profit Quality | 50.23% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 0.89 |
F-Score7
WACC9.31%
ROIC/WACC1.09
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)56.29%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%6.73%
EPS Next Y25.95%
EPS Next 2Y24.23%
EPS Next 3Y20.84%
EPS Next 5YN/A
Revenue 1Y (TTM)3.92%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%-7.94%
Revenue Next Year5.68%
Revenue Next 2Y5.12%
Revenue Next 3Y4.33%
Revenue Next 5YN/A
EBIT growth 1Y14.29%
EBIT growth 3Y59.99%
EBIT growth 5Y23.82%
EBIT Next Year76.58%
EBIT Next 3Y25.41%
EBIT Next 5YN/A
FCF growth 1Y181.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y177.37%
OCF growth 3YN/A
OCF growth 5YN/A