BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BBD-B - CA0977518616 - Common Stock
249.65 CAD
-16.04 (-6.04%)
We assign a fundamental rating of 3 out of 10 to BBD-B. 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. While showing a medium growth rate, BBD-B is valued expensive at the moment.
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.
- The reported operating cash flow has been mixed in the past 5 years: BBD-B reported negative operating cash flow in multiple years.
1.2 Ratios
- With a Return On Assets value of 2.91%, BBD-B is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
- The Return On Invested Capital of BBD-B (10.47%) is better 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
- The Profit Margin of BBD-B (4.12%) is worse than 61.54% of its industry peers.
- BBD-B's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 11.19%, BBD-B is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
- In the last couple of years the Operating Margin of BBD-B has grown nicely.
- BBD-B has a Gross Margin of 20.09%. This is in the lower half of the industry: BBD-B underperforms 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%
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.
- BBD-B has more shares outstanding than it did 1 year ago.
- BBD-B has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for BBD-B has been reduced compared to a year ago.
2.2 Solvency
- BBD-B has an Altman-Z score of 1.15. This is a bad value and indicates that BBD-B is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of BBD-B (1.15) is comparable to the rest of the industry.
- 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.
- BBD-B's Debt to FCF ratio of 11.16 is on the low side compared to the rest of the industry. BBD-B is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.16 | ||
| Altman-Z | 1.15 |
ROIC/WACC1.12
WACC9.35%
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.
- BBD-B has a Current ratio (1.10) which is comparable to the rest of the industry.
- BBD-B has a Quick Ratio of 1.10. This is a bad value and indicates that BBD-B is not financially healthy enough and could expect problems in meeting its short term obligations.
- BBD-B's Quick ratio of 0.40 is on the low side compared to the rest of the industry. BBD-B is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 |
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
- The Revenue has been growing slightly by 4.01% in the past year.
- The Revenue has been growing slightly by 2.96% on average over the past years.
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
- Based on estimates for the next years, BBD-B will show a very strong growth in Earnings Per Share. The EPS will grow by 20.67% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.63, the valuation of BBD-B can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as BBD-B.
- BBD-B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- BBD-B is valuated rather expensively with a Price/Forward Earnings ratio of 23.53.
- BBD-B's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of BBD-B to the average of the S&P500 Index (25.96), we can say BBD-B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 23.53 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BBD-B.
- 61.54% of the companies in the same industry are cheaper than BBD-B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.73 | ||
| EV/EBITDA | 14.76 |
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.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y22.56%
EPS Next 3Y20.67%
5. Dividend
5.1 Amount
- No dividends for BBD-B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BOMBARDIER INC-B / BBD-B.CA FAQ
What is the fundamental rating for BBD-B stock?
ChartMill assigns a fundamental rating of 3 / 10 to BBD-B.CA.
What is the valuation status of BOMBARDIER INC-B (BBD-B.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to BOMBARDIER INC-B (BBD-B.CA). This can be considered as Overvalued.
How profitable is BOMBARDIER INC-B (BBD-B.CA) stock?
BOMBARDIER INC-B (BBD-B.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of BOMBARDIER INC-B (BBD-B.CA) stock?
The Price/Earnings (PE) ratio for BOMBARDIER INC-B (BBD-B.CA) is 30.63 and the Price/Book (PB) ratio is -9.17.
What is the earnings growth outlook for BOMBARDIER INC-B?
The Earnings per Share (EPS) of BOMBARDIER INC-B (BBD-B.CA) is expected to grow by 26.82% in the next year.