BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:BBD-B • CA0977518616

232.61 CAD

-14.92 (-6.03%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

Taking everything into account, BBD-B scores 3 out of 10 in our fundamental rating. BBD-B was compared to 13 industry peers in the Aerospace & Defense industry. While BBD-B is still in line with the averages on profitability rating, there are concerns on its financial health. BBD-B is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

BBD-B had positive earnings in the past year.
In the past year BBD-B had a positive cash flow from operations.
In multiple years BBD-B reported negative net income over the last 5 years.
In multiple years BBD-B reported negative operating cash flow during the last 5 years.

1.2 Ratios

BBD-B's Return On Assets of 2.91% is on the low side compared to the rest of the industry. BBD-B is outperformed by 61.54% of its industry peers.
BBD-B has a better Return On Invested Capital (10.47%) than 76.92% of its industry peers.
BBD-B had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 8.00%.
The 3 year average ROIC (8.03%) for BBD-B is below the current ROIC(10.47%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	2.91%
ROE	N/A
ROIC	10.47%

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

Looking at the Profit Margin, with a value of 4.12%, BBD-B is doing worse than 61.54% of the companies in the same industry.
BBD-B's Profit Margin has declined in the last couple of years.
BBD-B's Operating Margin of 11.19% is fine compared to the rest of the industry. BBD-B outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of BBD-B has grown nicely.
BBD-B has a worse Gross Margin (20.09%) than 69.23% of its industry peers.
BBD-B's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	11.19%
PM (TTM)	4.12%
GM	20.09%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BBD-B has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BBD-B has more shares outstanding
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 1.18, we must say that BBD-B is in the distress zone and has some risk of bankruptcy.
BBD-B has a Altman-Z score (1.18) which is in line with its industry peers.
BBD-B has a debt to FCF ratio of 11.16. This is a negative value and a sign of low solvency as BBD-B would need 11.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.16, BBD-B is doing worse than 61.54% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	11.16
Altman-Z	1.18

ROIC/WACC1.12

WACC9.34%

2.3 Liquidity

BBD-B has a Current Ratio of 1.10. This is a normal value and indicates that BBD-B is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, BBD-B is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 0.40 indicates that BBD-B may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, BBD-B is doing worse than 76.92% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.1
Quick Ratio	0.4

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WACC

Debt/Equity

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Altman-Z score

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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 69.23%, which is quite impressive.
The earnings per share for BBD-B have been decreasing by -59.76% on average. This is quite bad
Looking at the last year, BBD-B shows a small growth in Revenue. The Revenue has grown by 4.01% in the last year.
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)69.23%

EPS 3Y-59.76%

EPS 5YN/A

EPS Q2Q%63.51%

Revenue 1Y (TTM)4.01%

Revenue growth 3Y12.5%

Revenue growth 5Y2.96%

Sales Q2Q%11.29%

3.2 Future

The Earnings Per Share is expected to grow by 20.67% on average over the next years. This is a very strong growth
Based on estimates for the next years, BBD-B will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.

EPS Next Y26.82%

EPS Next 2Y22.56%

EPS Next 3Y20.67%

EPS Next 5YN/A

Revenue Next Year7.05%

Revenue Next 2Y5.65%

Revenue Next 3Y4.99%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.97, which means the current valuation is very expensive for BBD-B.
BBD-B's Price/Earnings ratio is in line with the industry average.
BBD-B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
BBD-B is valuated rather expensively with a Price/Forward Earnings ratio of 22.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBD-B is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 25.57. BBD-B is around the same levels.

		Industry Rank	Sector Rank
PE	28.97
Fwd PE	22.23

4.2 Price Multiples

BBD-B's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBD-B indicates a slightly more expensive valuation: BBD-B is more expensive than 61.54% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	34.7
EV/EBITDA	15.27

4.3 Compensation for Growth

BBD-B's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BBD-B's earnings are expected to grow with 20.67% in the coming years. This may justify a more expensive valuation.