BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BBD-PR-D - CA0977516065
17.46 CAD
+0.21 (+1.22%)
BBD-PR-D gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of BBD-PR-D while its profitability can be described as average. BBD-PR-D scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally BBD-PR-D also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BBD-PR-D had positive earnings in the past year.
- In the past year BBD-PR-D had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: BBD-PR-D reported negative net income in multiple years.
- In multiple years BBD-PR-D reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.91%, BBD-PR-D is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- BBD-PR-D's Return On Invested Capital of 10.47% is amongst the best of the industry. BBD-PR-D outperforms 100.00% of its industry peers.
- BBD-PR-D 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-PR-D 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
- BBD-PR-D has a better Profit Margin (4.12%) than 61.54% of its industry peers.
- In the last couple of years the Profit Margin of BBD-PR-D has declined.
- BBD-PR-D has a better Operating Margin (11.19%) than 84.62% of its industry peers.
- In the last couple of years the Operating Margin of BBD-PR-D has grown nicely.
- The Gross Margin of BBD-PR-D (20.09%) is comparable to the rest of the industry.
- BBD-PR-D'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-PR-D has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BBD-PR-D has more shares outstanding than it did 1 year ago.
- BBD-PR-D has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BBD-PR-D has an improved debt to assets ratio.
2.2 Solvency
- BBD-PR-D has an Altman-Z score of 0.48. This is a bad value and indicates that BBD-PR-D is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.48, BBD-PR-D is doing worse than 69.23% of the companies in the same industry.
- BBD-PR-D has a debt to FCF ratio of 11.16. This is a negative value and a sign of low solvency as BBD-PR-D would need 11.16 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 11.16, BBD-PR-D is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.16 | ||
| Altman-Z | 0.48 |
ROIC/WACC1.35
WACC7.77%
2.3 Liquidity
- BBD-PR-D has a Current Ratio of 1.10. This is a normal value and indicates that BBD-PR-D 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-PR-D is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- A Quick Ratio of 0.40 indicates that BBD-PR-D may have some problems paying its short term obligations.
- BBD-PR-D has a Quick ratio (0.40) which is in line with 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 69.23% over the past year.
- The earnings per share for BBD-PR-D have been decreasing by -59.76% on average. This is quite bad
- Looking at the last year, BBD-PR-D shows a small growth in Revenue. The Revenue has grown by 4.01% in the last year.
- BBD-PR-D 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
- BBD-PR-D 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
- 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 2.13, the valuation of BBD-PR-D can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of BBD-PR-D indicates a rather cheap valuation: BBD-PR-D is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BBD-PR-D to the average of the S&P500 Index (27.21), we can say BBD-PR-D is valued rather cheaply.
- A Price/Forward Earnings ratio of 1.64 indicates a rather cheap valuation of BBD-PR-D.
- Based on the Price/Forward Earnings ratio, BBD-PR-D is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of BBD-PR-D to the average of the S&P500 Index (25.98), we can say BBD-PR-D is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.13 | ||
| Fwd PE | 1.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BBD-PR-D is valued cheaper than 100.00% of the companies in the same industry.
- 100.00% of the companies in the same industry are more expensive than BBD-PR-D, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.56 | ||
| EV/EBITDA | 3.5 |
4.3 Compensation for Growth
- BBD-PR-D's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of BBD-PR-D may justify a higher PE ratio.
- BBD-PR-D's earnings are expected to grow with 20.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y22.56%
EPS Next 3Y20.67%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.04%, BBD-PR-D is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.21, BBD-PR-D pays a better dividend. On top of this BBD-PR-D pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, BBD-PR-D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
5.2 History
- On average, the dividend of BBD-PR-D grows each year by 92.86%, which is quite nice.
- BBD-PR-D has paid a dividend for at least 10 years, which is a reliable track record.
- BBD-PR-D has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)92.86%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 5.42% of the earnings are spent on dividend by BBD-PR-D. This is a low number and sustainable payout ratio.
- BBD-PR-D's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP5.42%
EPS Next 2Y22.56%
EPS Next 3Y20.67%
BOMBARDIER INC - BBDBCN 4.588 PERP / BBD-PR-D.CA FAQ
What is the ChartMill fundamental rating of BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BBD-PR-D.CA.
What is the valuation status of BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA). This can be considered as Undervalued.
What is the profitability of BBD-PR-D stock?
BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) stock?
The Price/Earnings (PE) ratio for BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) is 2.13 and the Price/Book (PB) ratio is -0.64.
How sustainable is the dividend of BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) stock?
The dividend rating of BOMBARDIER INC - BBDBCN 4.588 PERP (BBD-PR-D.CA) is 8 / 10 and the dividend payout ratio is 5.42%.