BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis
TSX:BBD-B - Toronto Stock Exchange - CA0977518616 - Common Stock - Currency: CAD
BBD-B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. BBD-B has a medium profitability rating, but doesn't score so well on its financial health evaluation. BBD-B is not valued too expensively and it also shows a decent 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.
In multiple years BBD-B reported negative net income over the last 5 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
BBD-B has a Return On Assets (2.68%) which is in line with its industry peers.
BBD-B's Return On Invested Capital of 9.88% is fine compared to the rest of the industry. BBD-B outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBD-B is in line with the industry average of 8.10%.
The last Return On Invested Capital (9.88%) for BBD-B is above the 3 year average (8.03%), which is a sign of increasing profitability.
| 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
The Profit Margin of BBD-B (3.91%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BBD-B has declined.
BBD-B has a Operating Margin of 10.92%. This is in the better half of the industry: BBD-B outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of BBD-B has grown nicely.
Looking at the Gross Margin, with a value of 20.60%, BBD-B is doing worse than 63.64% of the companies in the same industry.
BBD-B's Gross Margin has improved in the last couple of years.
| 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-B is creating some value.
BBD-B has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BBD-B has less shares outstanding
BBD-B has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that BBD-B is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.70, BBD-B is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of BBD-B is 23.90, which is on the high side as it means it would take BBD-B, 23.90 years of fcf income to pay off all of its debts.
BBD-B has a Debt to FCF ratio of 23.90. This is comparable to the rest of the industry: BBD-B outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.08
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.10 indicates that BBD-B should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, BBD-B perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
BBD-B has a Quick Ratio of 1.10. This is a bad value and indicates that BBD-B is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.40, BBD-B is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
BBD-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.81%, which is quite impressive.
The earnings per share for BBD-B have been decreasing by -59.76% on average. This is quite bad
BBD-B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.11%.
BBD-B 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-B will show a very strong growth in Earnings Per Share. The EPS will grow by 20.40% on average per year.
Based on estimates for the next years, BBD-B will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BBD-B is valuated correctly with a Price/Earnings ratio of 13.99.
Compared to the rest of the industry, the Price/Earnings ratio of BBD-B indicates a somewhat cheap valuation: BBD-B is cheaper than 72.73% of the companies listed in the same industry.
BBD-B's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 9.81, which indicates a very decent valuation of BBD-B.
Based on the Price/Forward Earnings ratio, BBD-B is valued a bit cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBD-B to the average of the S&P500 Index (22.13), we can say BBD-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBD-B is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
BBD-B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.57 | ||
| EV/EBITDA | 8.18 |
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 20.40% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y22.26%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
BBD-B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-B (6/13/2025, 7:00:00 PM)
102.97
-0.55 (-0.53%)
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 Cap10.30B
Analysts80.83
Price Target116.57 (13.21%)
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)0.13%
PT rev (3m)-0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.87 | ||
| P/FCF | 32.57 | ||
| P/OCF | 18.66 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)7.36
EY7.15%
EPS(NY)10.49
Fwd EY10.19%
FCF(TTM)3.16
FCFY3.07%
OCF(TTM)5.52
OCFY5.36%
SpS118.07
BVpS-27.13
TBVpS-72.42
PEG (NY)0.55
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 | 0.7 |
F-Score8
WACC9.12%
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