BOMBARDIER INC-B (BBD-B.CA) Stock Fundamental Analysis
TSX:BBD-B - Toronto Stock Exchange - CA0977518616 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BBD-B. BBD-B was compared to 11 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. BBD-B has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BBD-B was profitable.
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
BBD-B has a Return On Assets (2.68%) which is in line with its industry peers.
BBD-B has a better Return On Invested Capital (9.88%) than 72.73% 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 7.78%.
The 3 year average ROIC (8.03%) for BBD-B 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-B's Profit Margin of 3.91% is fine compared to the rest of the industry. BBD-B outperforms 63.64% 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 10.92%, BBD-B is doing good in the industry, outperforming 63.64% of the companies in the same industry.
BBD-B's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.60%, BBD-B is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
BBD-B'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-B is still creating some value.
BBD-B has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BBD-B has less shares outstanding
The debt/assets ratio for BBD-B has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that BBD-B is in the distress zone and has some risk of bankruptcy.
BBD-B has a Altman-Z score of 0.65. This is comparable to the rest of the industry: BBD-B outperforms 54.55% of its industry peers.
The Debt to FCF ratio of BBD-B is 23.90, which is on the high side as it means it would take BBD-B, 23.90 years of fcf income to pay off all of its debts.
BBD-B has a Debt to FCF ratio of 23.90. This is comparable to the rest of the industry: BBD-B outperforms 45.45% of its industry peers.
| 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-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's Current ratio of 1.10 is in line compared to the rest of the industry. BBD-B outperforms 45.45% of its industry peers.
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 72.73% 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 32.73%, 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 7.69% in the last year.
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
The Earnings Per Share is expected to grow by 20.40% 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 3.41% on average per year.
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y4.06%
Revenue Next 3Y3.41%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.77, which indicates a correct valuation of BBD-B.
Based on the Price/Earnings ratio, BBD-B is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BBD-B to the average of the S&P500 Index (28.79), we can say BBD-B is valued rather cheaply.
BBD-B is valuated reasonably with a Price/Forward Earnings ratio of 10.18.
72.73% of the companies in the same industry are more expensive than BBD-B, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, BBD-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than BBD-B, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBD-B is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.37 | ||
| EV/EBITDA | 7.39 |
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.
A more expensive valuation may be justified as BBD-B's earnings are expected to grow with 20.40% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y22.26%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
BBD-B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-B (4/25/2025, 7:00:00 PM)
91.21
+1.53 (+1.71%)
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 Cap9.12B
Analysts80.83
Price Target116.28 (27.49%)
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)0.31%
PT rev (3m)-3.48%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.76 | ||
| P/FCF | 28.37 | ||
| P/OCF | 16.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.39 |
EPS(TTM)7.14
EY7.83%
EPS(NY)8.96
Fwd EY9.82%
FCF(TTM)3.22
FCFY3.53%
OCF(TTM)5.61
OCFY6.15%
SpS120.09
BVpS-27.59
TBVpS-73.66
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 Year4.61%
Revenue Next 2Y4.06%
Revenue Next 3Y3.41%
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