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 3 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BBD-B had positive earnings in the past year.
BBD-B had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.68%, BBD-B is doing worse than 63.64% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.88%, BBD-B is doing good in the industry, outperforming 63.64% 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 8.10%.
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 has a Profit Margin of 3.91%. This is in the lower half of the industry: BBD-B underperforms 63.64% of its industry peers.
BBD-B's Profit Margin has declined in the last couple of years.
BBD-B has a Operating Margin of 10.92%. This is comparable to the rest of the industry: BBD-B outperforms 54.55% of its industry peers.
In the last couple of years the Operating Margin of BBD-B has grown nicely.
BBD-B has a Gross Margin of 20.60%. This is in the lower half of the industry: BBD-B underperforms 72.73% of its industry peers.
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.
The number of shares outstanding for BBD-B has been increased compared to 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 0.87. 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 0.87. This is in the better half of the industry: BBD-B outperforms 72.73% 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's Debt to FCF ratio of 23.90 is on the low side compared to the rest of the industry. BBD-B is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.9 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.03
WACC9.6%
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.
The Current ratio of BBD-B (1.10) is worse than 63.64% of its industry peers.
A Quick Ratio of 0.40 indicates that BBD-B may have some problems paying its short term obligations.
BBD-B has a worse Quick ratio (0.40) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.81% over the past year.
The earnings per share for BBD-B have been decreasing by -59.76% on average. This is quite bad
BBD-B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.11%.
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)69.81%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%69.44%
Revenue 1Y (TTM)13.11%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%18.81%
3.2 Future
BBD-B is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.40% yearly.
The Revenue is expected to grow by 3.31% on average over the next years.
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y4.21%
Revenue Next 3Y3.31%
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
The Price/Earnings ratio is 22.07, which indicates a rather expensive current valuation of BBD-B.
Based on the Price/Earnings ratio, BBD-B is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
BBD-B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.18.
A Price/Forward Earnings ratio of 15.47 indicates a correct valuation of BBD-B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBD-B is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BBD-B to the average of the S&P500 Index (35.34), we can say BBD-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBD-B is on the same level as its industry peers.
BBD-B's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BBD-B is more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.46 | ||
| EV/EBITDA | 11.26 |
4.3 Compensation for Growth
BBD-B's 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)0.87
PEG (5Y)N/A
EPS Next 2Y22.26%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
No dividends for BBD-B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BBD-B (7/15/2025, 7:00:00 PM)
163.12
+1.16 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners32.8%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap16.35B
Analysts80.83
Price Target117.08 (-28.22%)
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)0.44%
PT rev (3m)-0.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 15.47 | ||
| P/S | 1.38 | ||
| P/FCF | 51.46 | ||
| P/OCF | 29.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.26 |
EPS(TTM)7.39
EY4.53%
EPS(NY)10.54
Fwd EY6.46%
FCF(TTM)3.17
FCFY1.94%
OCF(TTM)5.53
OCFY3.39%
SpS118.39
BVpS-27.2
TBVpS-72.62
PEG (NY)0.87
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 | 0.87 |
F-Score8
WACC9.6%
ROIC/WACC1.03
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)69.81%
EPS 3Y-59.76%
EPS 5YN/A
EPS Q2Q%69.44%
EPS Next Y25.48%
EPS Next 2Y22.26%
EPS Next 3Y20.4%
EPS Next 5YN/A
Revenue 1Y (TTM)13.11%
Revenue growth 3Y12.5%
Revenue growth 5Y2.96%
Sales Q2Q%18.81%
Revenue Next Year5.38%
Revenue Next 2Y4.21%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
EBIT growth 1Y16.65%
EBIT growth 3Y59.99%
EBIT growth 5Y23.82%
EBIT Next Year76.58%
EBIT Next 3Y25.41%
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