Bombardier (TSX:BBD.B) - Share price, News & Analysis

BBD.B fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

BBD.B Stock Overview

Bombardier Inc. engages in the manufacture and sale of business aircraft in Europe, North America, the Asia Pacific, and internationally.

Rewards

Trading at 81% below our estimate of its fair value

Earnings are forecast to grow 89.14% per year

Risk Analysis

Negative shareholders equity

Bombardier Competitors

Honeywell International

NasdaqGS:HON

US$131.7b

Siemens

XTRA:SIE

€92.8b

General Electric

NYSE:GE

US$82.6b

Boeing

NYSE:BA

US$75.3b

Price History & Performance

Summary of all time highs, changes and price drops for Bombardier
Historical stock prices
Current Share Price	CA$1.16
52 Week High	CA$2.28
52 Week Low	CA$0.87
Beta	2.83
1 Month Change	-18.88%
3 Month Change	-34.46%
1 Year Change	30.34%
3 Year Change	-45.02%
5 Year Change	-45.02%
Change since IPO	11.64%

Shareholder Returns

	BBD.B	CA Aerospace & Defense	CA Market
7D	0.9%	-1.7%	-3.0%
1Y	30.3%	-23.1%	4.2%

Return vs Industry: BBD.B exceeded the Canadian Aerospace & Defense industry which returned -23.1% over the past year.

Return vs Market: BBD.B exceeded the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is BBD.B's price volatile compared to industry and market?
BBD.B volatility
BBD.B Average Weekly Movement	9.9%
Aerospace & Defense Industry Average Movement	7.9%
Market Average Movement	9.6%
10% most volatile stocks in CA Market	16.4%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: BBD.B is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: BBD.B's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1902	13,400	Éric Martel	https://www.bombardier.com

Bombardier Inc. engages in the manufacture and sale of business aircraft in Europe, North America, the Asia Pacific, and internationally. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, smart services, service centers, training, and technical publications.

Bombardier Fundamentals Summary

How do Bombardier's earnings and revenue compare to its market cap?
BBD.B fundamental statistics
Market Cap	US$2.12b
Earnings (TTM)	-US$341.00m
Revenue (TTM)	US$5.99b

0.4x

P/S Ratio

-6.2x

P/E Ratio

Is BBD.B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBD.B income statement (TTM)
Revenue	US$5.99b
Cost of Revenue	US$5.01b
Gross Profit	US$979.00m
Other Expenses	US$1.32b
Earnings	-US$341.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	-0.14
Gross Margin	16.34%
Net Profit Margin	-5.69%
Debt/Equity Ratio	-228.2%

How did BBD.B perform over the long term?

See historical performance and comparison

Valuation

Is Bombardier undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BBD.B (CA$1.16) is trading below our estimate of fair value (CA$6.11)

Significantly Below Fair Value: BBD.B is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BBD.B is unprofitable, so we can't compare its PE Ratio to the North American Aerospace & Defense industry average.

PE vs Market: BBD.B is unprofitable, so we can't compare its PE Ratio to the Canadian market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BBD.B's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: BBD.B has negative assets, so we can't compare its PB Ratio to the CA Aerospace & Defense industry average.

Future Growth

How is Bombardier forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

89.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBD.B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: BBD.B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BBD.B's is expected to become profitable in the next 3 years.

Revenue vs Market: BBD.B's revenue (6.1% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: BBD.B's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BBD.B's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Bombardier performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-12.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BBD.B is currently unprofitable.

Growing Profit Margin: BBD.B is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BBD.B is unprofitable, and losses have increased over the past 5 years at a rate of 12% per year.

Accelerating Growth: Unable to compare BBD.B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BBD.B is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (23%).

Return on Equity

High ROE: BBD.B's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

Financial Health

How is Bombardier's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BBD.B has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BBD.B has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: BBD.B has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: BBD.B's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BBD.B has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BBD.B is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.3% per year.

Dividend

What is Bombardier current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.14%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BBD.B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BBD.B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BBD.B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BBD.B's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: BBD.B is not paying a notable dividend for the Canadian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BBD.B has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure

CEO

Éric Martel (52 yo)

2.08yrs

Tenure

US$3,150,222

Compensation

Mr. Éric Martel has been the President, Chief Executive Officer and Director of Bombardier Inc. since April 6, 2020. Mr. Martel served as the President, Chief Executive Officer and Director of Hydro-Québec...

CEO Compensation Analysis

Compensation vs Market: Éric's total compensation ($USD3.15M) is above average for companies of similar size in the Canadian market ($USD2.22M).

Compensation vs Earnings: Insufficient data to compare Éric's compensation with company performance.

Leadership Team

Experienced Management: BBD.B's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: BBD.B's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31