BOMBARDIER INC-A (BBD-A.CA) Stock Fundamental Analysis
TSX:BBD-A - Toronto Stock Exchange - CA0977518798 - Common Stock - Currency: CAD
Taking everything into account, BBD-A scores 4 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BBD-A was profitable.
In the past year BBD-A had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BBD-A reported negative net income in multiple years.
In multiple years BBD-A reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BBD-A (2.68%) is comparable to the rest of the industry.
BBD-A's Return On Invested Capital of 9.88% is fine compared to the rest of the industry. BBD-A outperforms 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBD-A is in line with the industry average of 7.78%.
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 has a Profit Margin of 3.91%. This is in the better half of the industry: BBD-A outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of BBD-A has declined.
BBD-A has a Operating Margin of 10.92%. This is in the better half of the industry: BBD-A outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of BBD-A has grown nicely.
With a Gross Margin value of 20.60%, BBD-A is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BBD-A is still creating some value.
Compared to 1 year ago, BBD-A has more shares outstanding
BBD-A has less shares outstanding than it did 5 years ago.
BBD-A has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that BBD-A is in the distress zone and has some risk of bankruptcy.
BBD-A has a Altman-Z score of 0.65. This is comparable to the rest of the industry: BBD-A outperforms 54.55% 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.
BBD-A has a Debt to FCF ratio (23.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 0.65 |
ROIC/WACC1.11
WACC8.92%
2.3 Liquidity
BBD-A has a Current Ratio of 1.10. This is a normal value and indicates that BBD-A is financially healthy and should not expect problems in meeting its short term obligations.
BBD-A has a Current ratio (1.10) which is comparable to the rest of the industry.
BBD-A has a Quick Ratio of 1.10. This is a bad value and indicates that BBD-A is not financially healthy enough and could expect problems in meeting 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 72.73% 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 32.73% over the past year.
The earnings per share for BBD-A have been decreasing by -59.76% on average. This is quite bad
BBD-A shows a small growth in Revenue. In the last year, the Revenue has grown by 7.69%.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)32.73%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%119.71%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%1.5%
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 3.34% on average over the next years.
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y4.07%
Revenue Next 3Y3.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.68, which indicates a correct valuation of BBD-A.
72.73% of the companies in the same industry are more expensive than BBD-A, based on the Price/Earnings ratio.
BBD-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 10.10, which indicates a very decent valuation of BBD-A.
Based on the Price/Forward Earnings ratio, BBD-A is valued a bit cheaper than 72.73% of the companies in the same industry.
BBD-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBD-A indicates a somewhat cheap valuation: BBD-A is cheaper than 72.73% of the companies listed in the same industry.
BBD-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.15 | ||
| EV/EBITDA | 7.44 |
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)0.5
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 (4/25/2025, 7:00:00 PM)
90.56
+0.55 (+0.61%)
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 Cap9.06B
Analysts80.83
Price Target116.39 (28.52%)
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)-0.65%
PT rev (3m)-5.07%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.75 | ||
| P/FCF | 28.15 | ||
| P/OCF | 16.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.44 |
EPS(TTM)7.14
EY7.88%
EPS(NY)8.96
Fwd EY9.9%
FCF(TTM)3.22
FCFY3.55%
OCF(TTM)5.62
OCFY6.2%
SpS120.17
BVpS-27.61
TBVpS-73.71
PEG (NY)0.5
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 | 0.65 |
F-Score8
WACC8.92%
ROIC/WACC1.11
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)32.73%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%119.71%
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue 1Y (TTM)7.69%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%1.5%
Revenue Next Year4.67%
Revenue Next 2Y4.07%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
EBIT growth 1Y16.65%
EBIT growth 3Y59.99%
EBIT growth 5Y23.82%
EBIT Next Year78.02%
EBIT Next 3Y25.76%
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