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BLACKBERRY LTD (BB) Stock Fundamental Analysis

NYSE:BB - New York Stock Exchange, Inc. - CA09228F1036 - Common Stock - Currency: USD

5.24  -0.34 (-6.09%)

After market: 5.2405 +0 (+0.01%)

Fundamental Rating

2

Overall BB gets a fundamental rating of 2 out of 10. We evaluated BB against 284 industry peers in the Software industry. BB may be in some trouble as it scores bad on both profitability and health. BB does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

BB had positive earnings in the past year.
BB had a negative operating cash flow in the past year.
BB had negative earnings in 4 of the past 5 years.
In multiple years BB reported negative operating cash flow during the last 5 years.
BB Yearly Net Income VS EBIT VS OCF VS FCFBB 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 2024 0 500M -500M -1B

1.2 Ratios

BB has a worse Return On Assets (-9.78%) than 60.14% of its industry peers.
BB has a Return On Equity (-17.66%) which is in line with its industry peers.
Industry RankSector Rank
ROA -9.78%
ROE -17.66%
ROIC N/A
ROA(3y)-17.52%
ROA(5y)-19.13%
ROE(3y)-33.88%
ROE(5y)-36.21%
ROIC(3y)N/A
ROIC(5y)N/A
BB Yearly ROA, ROE, ROICBB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

With a Gross Margin value of 71.24%, BB perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
BB's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for BB so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 71.24%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.4%
GM growth 5Y-4.67%
BB Yearly Profit, Operating, Gross MarginsBB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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3

2. Health

2.1 Basic Checks

BB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for BB has been increased compared to 1 year ago.
Compared to 5 years ago, BB has more shares outstanding
BB has a better debt/assets ratio than last year.
BB Yearly Shares OutstandingBB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
BB Yearly Total Debt VS Total AssetsBB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.54, we must say that BB is in the distress zone and has some risk of bankruptcy.
BB has a Altman-Z score of 1.54. This is in the lower half of the industry: BB underperforms 61.23% of its industry peers.
BB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, BB is in line with its industry, outperforming 40.58% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF N/A
Altman-Z 1.54
ROIC/WACCN/A
WACC12.44%
BB Yearly LT Debt VS Equity VS FCFBB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.37 indicates that BB should not have too much problems paying its short term obligations.
The Current ratio of BB (1.37) is comparable to the rest of the industry.
A Quick Ratio of 1.37 indicates that BB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, BB perfoms like the industry average, outperforming 44.20% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.37
BB Yearly Current Assets VS Current LiabilitesBB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 100.00% over the past year.
Measured over the past years, BB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.57% on average per year.
BB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.20%.
Measured over the past years, BB shows a decrease in Revenue. The Revenue has been decreasing by -1.15% on average per year.
EPS 1Y (TTM)100%
EPS 3Y-30.66%
EPS 5Y-23.57%
EPS Q2Q%100%
Revenue 1Y (TTM)-27.2%
Revenue growth 3Y-1.52%
Revenue growth 5Y-1.15%
Sales Q2Q%-7.43%

3.2 Future

BB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.89% yearly.
Based on estimates for the next years, BB will show a very negative growth in Revenue. The Revenue will decrease by -10.99% on average per year.
EPS Next Y-82.83%
EPS Next 2Y32.88%
EPS Next 3Y40.77%
EPS Next 5Y36.89%
Revenue Next Year-32.64%
Revenue Next 2Y-18.85%
Revenue Next 3Y-10.99%
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 decreasing: in the next years the growth will be less than in the last years.
BB Yearly Revenue VS EstimatesBB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
BB Yearly EPS VS EstimatesBB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -1 -2

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 262.00, BB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BB is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BB to the average of the S&P500 Index (29.63), we can say BB is valued expensively.
Based on the Price/Forward Earnings ratio of 49.46, the valuation of BB can be described as expensive.
BB's Price/Forward Earnings is on the same level as the industry average.
BB is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 262
Fwd PE 49.46
BB Price Earnings VS Forward Price EarningsBB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BB is valued a bit cheaper than the industry average as 60.51% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 95.44
BB Per share dataBB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 0.4 0.6 0.8 1

4.3 Compensation for Growth

A more expensive valuation may be justified as BB's earnings are expected to grow with 40.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.88%
EPS Next 3Y40.77%

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0

5. Dividend

5.1 Amount

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

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BLACKBERRY LTD

NYSE:BB (2/21/2025, 8:04:00 PM)

After market: 5.2405 +0 (+0.01%)

5.24

-0.34 (-6.09%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-19 2024-12-19/amc
Earnings (Next)04-01 2025-04-01/amc
Inst Owners48.47%
Inst Owner Change3.49%
Ins Owners0.21%
Ins Owner Change1.64%
Market Cap3.10B
Analysts47.69
Price Target2.79 (-46.76%)
Short Float %4.95%
Short Ratio1.37
Dividend
Industry RankSector 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)172.83%
Min EPS beat(2)100%
Max EPS beat(2)245.67%
EPS beat(4)4
Avg EPS beat(4)142.04%
Min EPS beat(4)31.47%
Max EPS beat(4)245.67%
EPS beat(8)8
Avg EPS beat(8)126.1%
EPS beat(12)12
Avg EPS beat(12)100.11%
EPS beat(16)15
Avg EPS beat(16)82.76%
Revenue beat(2)1
Avg Revenue beat(2)2.22%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)4.9%
Revenue beat(4)3
Avg Revenue beat(4)10.74%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)29.99%
Revenue beat(8)4
Avg Revenue beat(8)20.12%
Revenue beat(12)5
Avg Revenue beat(12)12.81%
Revenue beat(16)7
Avg Revenue beat(16)8.76%
PT rev (1m)9.93%
PT rev (3m)8.25%
EPS NQ rev (1m)28%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)147.06%
EPS NY rev (3m)147.06%
Revenue NQ rev (1m)-17.35%
Revenue NQ rev (3m)-19.71%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-7.32%
Valuation
Industry RankSector Rank
PE 262
Fwd PE 49.46
P/S 5.12
P/FCF N/A
P/OCF N/A
P/B 4.28
P/tB 15.42
EV/EBITDA 95.44
EPS(TTM)0.02
EY0.38%
EPS(NY)0.11
Fwd EY2.02%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS1.02
BVpS1.23
TBVpS0.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.78%
ROE -17.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 71.24%
FCFM N/A
ROA(3y)-17.52%
ROA(5y)-19.13%
ROE(3y)-33.88%
ROE(5y)-36.21%
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)N/A
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 3Y-5.4%
GM growth 5Y-4.67%
F-Score4
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF N/A
Debt/EBITDA 5.74
Cap/Depr 25%
Cap/Sales 2.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.37
Quick Ratio 1.37
Altman-Z 1.54
F-Score4
WACC12.44%
ROIC/WACCN/A
Cap/Depr(3y)32.27%
Cap/Depr(5y)27.96%
Cap/Sales(3y)4.71%
Cap/Sales(5y)4.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y-30.66%
EPS 5Y-23.57%
EPS Q2Q%100%
EPS Next Y-82.83%
EPS Next 2Y32.88%
EPS Next 3Y40.77%
EPS Next 5Y36.89%
Revenue 1Y (TTM)-27.2%
Revenue growth 3Y-1.52%
Revenue growth 5Y-1.15%
Sales Q2Q%-7.43%
Revenue Next Year-32.64%
Revenue Next 2Y-18.85%
Revenue Next 3Y-10.99%
Revenue Next 5YN/A
EBIT growth 1Y67.86%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year148.86%
EBIT Next 3Y82.04%
EBIT Next 5Y62.02%
FCF growth 1Y81.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y83.61%
OCF growth 3YN/A
OCF growth 5YN/A