BLACKBERRY LTD (BB)
CA09228F1036 - Common Stock
Overall BB gets a fundamental rating of 2 out of 10. We evaluated BB against 278 industry peers in the Software industry. Both the profitability and financial health of BB have multiple concerns. While showing a medium growth rate, BB is valued expensive at the moment.
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.
In the past 5 years BB reported 4 times negative net income.
In multiple years BB reported negative operating cash flow during the last 5 years.
1.2 Ratios
BB's Return On Assets of -10.62% is on the low side compared to the rest of the industry. BB is outperformed by 60.07% of its industry peers.
BB has a Return On Equity (-18.85%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -18.85% | ||
| 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
1.3 Margins
Looking at the Gross Margin, with a value of 70.02%, BB is in line with its industry, outperforming 55.04% of the companies in the same industry.
BB's Gross Margin has declined in the last couple of years.
BB does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.02% |
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%
2. Health
2.1 Basic Checks
BB does not have a ROIC to compare to the WACC, probably because it is not profitable.
BB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BB has more shares outstanding
The debt/assets ratio for BB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that BB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BB (-0.01) is worse than 72.30% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that BB is not too dependend on debt financing.
BB has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: BB underperforms 60.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.01 |
ROIC/WACCN/A
WACC10.06%
2.3 Liquidity
A Current Ratio of 1.44 indicates that BB should not have too much problems paying its short term obligations.
BB has a Current ratio of 1.44. This is comparable to the rest of the industry: BB outperforms 44.24% of its industry peers.
BB has a Quick Ratio of 1.44. This is a normal value and indicates that BB is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.44, BB perfoms like the industry average, outperforming 44.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
BB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
The earnings per share for BB have been decreasing by -23.57% on average. This is quite bad
BB shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.03%.
BB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.15% yearly.
EPS 1Y (TTM)100%
EPS 3Y-30.66%
EPS 5Y-23.57%
EPS Q2Q%100%
Revenue 1Y (TTM)30.03%
Revenue growth 3Y-1.52%
Revenue growth 5Y-1.15%
Sales Q2Q%-18.29%
3.2 Future
The Earnings Per Share is expected to grow by 30.44% on average over the next years. This is a very strong growth
BB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.11% yearly.
EPS Next Y-136.48%
EPS Next 2Y-1.73%
EPS Next 3Y22.35%
EPS Next 5Y30.44%
Revenue Next Year-27.31%
Revenue Next 2Y-11.54%
Revenue Next 3Y14.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 184.50 indicates a quite expensive valuation of BB.
The rest of the industry has a similar Price/Earnings ratio as BB.
BB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 63.69, BB can be considered very expensive at the moment.
BB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BB is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 184.5 | ||
| Fwd PE | 63.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 100.26 |
4.3 Compensation for Growth
BB's earnings are expected to grow with 22.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.73%
EPS Next 3Y22.35%
5. Dividend
5.1 Amount
BB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLACKBERRY LTD
NYSE:BB (12/20/2024, 8:04:00 PM)
After market: 3.6999 +0.01 (+0.27%)3.69
+0.71 (+23.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners44.13%
Inst Owner Change-1.63%
Ins Owners1.52%
Ins Owner Change1.42%
Market Cap2.18B
Analysts76
Price Target2.49 (-32.52%)
Short Float %4.53%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)65.73%
Min EPS beat(2)31.47%
Max EPS beat(2)100%
EPS beat(4)4
Avg EPS beat(4)114.72%
Min EPS beat(4)31.47%
Max EPS beat(4)191.02%
EPS beat(8)8
Avg EPS beat(8)99.22%
EPS beat(12)12
Avg EPS beat(12)87.97%
EPS beat(16)15
Avg EPS beat(16)84.27%
Revenue beat(2)1
Avg Revenue beat(2)14.77%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)29.99%
Revenue beat(4)2
Avg Revenue beat(4)8.99%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)29.99%
Revenue beat(8)3
Avg Revenue beat(8)19.16%
Revenue beat(12)5
Avg Revenue beat(12)12.46%
Revenue beat(16)6
Avg Revenue beat(16)8.23%
PT rev (1m)-3.16%
PT rev (3m)-4.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.92%
EPS NY rev (1m)0%
EPS NY rev (3m)48.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 184.5 | ||
| Fwd PE | 63.69 | ||
| P/S | 3.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.98 | ||
| P/tB | 66.05 | ||
| EV/EBITDA | 100.26 |
EPS(TTM)0.02
EY0.54%
EPS(NY)0.06
Fwd EY1.57%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS1.08
BVpS1.24
TBVpS0.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -18.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.02% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.47 | ||
| Cap/Depr | 28.3% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | -0.01 |
F-Score4
WACC10.06%
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-136.48%
EPS Next 2Y-1.73%
EPS Next 3Y22.35%
EPS Next 5Y30.44%
Revenue 1Y (TTM)30.03%
Revenue growth 3Y-1.52%
Revenue growth 5Y-1.15%
Sales Q2Q%-18.29%
Revenue Next Year-27.31%
Revenue Next 2Y-11.54%
Revenue Next 3Y14.11%
Revenue Next 5YN/A
EBIT growth 1Y46.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year148.86%
EBIT Next 3Y82.04%
EBIT Next 5Y57.15%
FCF growth 1Y23.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.63%
OCF growth 3YN/A
OCF growth 5YN/A