BOMBARDIER INC-A (BBD-A.CA) Stock Fundamental Analysis
TSX:BBD-A - Toronto Stock Exchange - CA0977518798 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BBD-A. BBD-A was compared to 11 industry peers in the Aerospace & Defense industry. While BBD-A is still in line with the averages on profitability rating, there are concerns on its financial health. BBD-A has a decent growth rate and is not valued too expensively.
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.
In multiple years BBD-A reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: BBD-A reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.68%, BBD-A is in line with its industry, outperforming 54.55% of the companies in the same industry.
BBD-A has a Return On Invested Capital of 9.88%. This is in the better half of the industry: BBD-A outperforms 63.64% of its industry peers.
BBD-A had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 7.49%.
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
The Profit Margin of BBD-A (3.91%) is comparable to the rest of the industry.
BBD-A's Profit Margin has declined in the last couple of years.
BBD-A has a Operating Margin of 10.92%. This is comparable to the rest of the industry: BBD-A outperforms 45.45% 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: 72.73% of the companies in the same industry are doing better.
BBD-A'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
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
The number of shares outstanding for BBD-A has been reduced compared to 5 years ago.
The debt/assets ratio for BBD-A has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that BBD-A is in the distress zone and has some risk of bankruptcy.
BBD-A has a better Altman-Z score (0.64) than 63.64% 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 of 23.90. This is in the lower half of the industry: BBD-A underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 0.64 |
ROIC/WACC1.17
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.10 indicates that BBD-A should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, BBD-A is doing worse than 63.64% of the companies in the same 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 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
BBD-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.74%.
The earnings per share for BBD-A have been decreasing by -59.76% on average. This is quite bad
Looking at the last year, BBD-A shows a small growth in Revenue. The Revenue has grown by 7.69% in the last year.
BBD-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)-19.74%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%-46.36%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%1.5%
3.2 Future
BBD-A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.55% yearly.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y51.97%
EPS Next 2Y34.32%
EPS Next 3Y28.55%
EPS Next 5YN/A
Revenue Next Year4.15%
Revenue Next 2Y3.67%
Revenue Next 3Y3.09%
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
With a Price/Earnings ratio of 18.50, BBD-A is valued on the expensive side.
63.64% of the companies in the same industry are more expensive than BBD-A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. BBD-A is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.59, the valuation of BBD-A can be described as very reasonable.
63.64% of the companies in the same industry are more expensive than BBD-A, based on the Price/Forward Earnings ratio.
BBD-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
BBD-A's Enterprise Value to EBITDA is on the same level as the industry average.
BBD-A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.91 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
BBD-A's 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 28.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y34.32%
EPS Next 3Y28.55%
5. Dividend
5.1 Amount
BBD-A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-A (2/21/2025, 7:00:00 PM)
88.62
-1.37 (-1.52%)
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 Cap8.86B
Analysts80
Price Target116.06 (30.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.22
Dividend Growth(5Y)92.86%
DP6.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.38%
Min Revenue beat(2)-5.85%
Max Revenue beat(2)12.6%
Revenue beat(4)2
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-16.05%
Max Revenue beat(4)15.16%
Revenue beat(8)4
Avg Revenue beat(8)1.1%
Revenue beat(12)5
Avg Revenue beat(12)-1.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.07%
PT rev (1m)-5.34%
PT rev (3m)-3.28%
EPS NQ rev (1m)3.31%
EPS NQ rev (3m)-9.25%
EPS NY rev (1m)-5.67%
EPS NY rev (3m)-5.6%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-8.72%
Revenue NY rev (1m)-2.24%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.72 | ||
| P/FCF | 26.91 | ||
| P/OCF | 15.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)4.79
EY5.41%
EPS(NY)9.24
Fwd EY10.43%
FCF(TTM)3.29
FCFY3.72%
OCF(TTM)5.75
OCFY6.49%
SpS122.98
BVpS-28.26
TBVpS-75.44
PEG (NY)0.36
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 | 0.64 |
F-Score8
WACC8.46%
ROIC/WACC1.17
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)-19.74%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%-46.36%
EPS Next Y51.97%
EPS Next 2Y34.32%
EPS Next 3Y28.55%
EPS Next 5YN/A
Revenue 1Y (TTM)7.69%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%1.5%
Revenue Next Year4.15%
Revenue Next 2Y3.67%
Revenue Next 3Y3.09%
Revenue Next 5YN/A
EBIT growth 1Y16.65%
EBIT growth 3Y59.99%
EBIT growth 5Y23.82%
EBIT Next Year82.77%
EBIT Next 3YN/A
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