BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BBD-B - CA0977518616 - Common Stock
265.69 CAD
-1.04 (-0.39%)
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. BBD-B has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- In multiple years BBD-B reported negative operating cash flow during the last 5 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.
- With a decent Return On Invested Capital value of 10.47%, BBD-B is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BBD-B is in line with the industry average of 8.00%.
- The last Return On Invested Capital (10.47%) for BBD-B is above the 3 year average (8.03%), which is a sign of increasing profitability.
| 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
- BBD-B has a Profit Margin of 4.12%. This is in the lower half of the industry: BBD-B underperforms 61.54% of its industry peers.
- In the last couple of years the Profit Margin of BBD-B has declined.
- With a decent Operating Margin value of 11.19%, BBD-B is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- BBD-B's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 20.09%, BBD-B is doing worse than 69.23% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BBD-B is creating some value.
- Compared to 1 year ago, BBD-B has more shares outstanding
- The number of shares outstanding for BBD-B has been reduced compared to 5 years ago.
- BBD-B has a better debt/assets ratio than last year.
2.2 Solvency
- BBD-B has an Altman-Z score of 1.22. This is a bad value and indicates that BBD-B is not financially healthy and even has some risk of bankruptcy.
- BBD-B has a Altman-Z score of 1.22. This is comparable to the rest of the industry: BBD-B outperforms 53.85% of its industry peers.
- The Debt to FCF ratio of BBD-B is 11.16, which is on the high side as it means it would take BBD-B, 11.16 years of fcf income to pay off 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 | 1.22 |
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.
- With a Current ratio value of 1.10, BBD-B perfoms like the industry average, 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 |
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
- 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.
- BBD-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
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
- 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.
- 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 32.48, 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 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.95, which indicates a rather expensive current valuation of BBD-B.
- BBD-B's Price/Forward Earnings ratio is in line with the industry average.
- BBD-B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 24.95 |
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 | 38.95 | ||
| EV/EBITDA | 15.96 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as BBD-B's earnings are expected to grow with 20.67% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y22.56%
EPS Next 3Y20.67%
5. Dividend
5.1 Amount
- BBD-B does not give a dividend.
| 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 32.48 and the Price/Book (PB) ratio is -9.72.
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.