TSX:BB

Stock Analysis Report

Executive Summary

BlackBerry Limited provides enterprise software and services worldwide.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has BlackBerry's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

BB

-2.6%

CA Software

-0.2%

CA Market


1 Year Return

-45.2%

BB

15.9%

CA Software

1.5%

CA Market

Return vs Industry: BB underperformed the Canadian Software industry which returned 15.9% over the past year.

Return vs Market: BB underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

BBIndustryMarket
7 Day-3.1%-2.6%-0.2%
30 Day-32.1%-4.3%-3.5%
90 Day-28.3%-1.1%-1.8%
1 Year-45.2%-45.2%17.8%15.9%5.1%1.5%
3 Year-30.8%-30.8%68.7%64.7%13.3%3.2%
5 Year-41.8%-41.8%149.3%142.0%25.2%7.2%

Price Volatility Vs. Market

How volatile is BlackBerry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BB (CA$6.8) is trading below our estimate of fair value (CA$39.22)

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


Price To Earnings Ratio

PE vs Industry: BB is poor value based on its PE Ratio (91.7x) compared to the Software industry average (24.2x).

PE vs Market: BB is poor value based on its PE Ratio (91.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: BB is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: BB is good value based on its PB Ratio (1.1x) compared to the CA Software industry average (2.4x).


Next Steps

Future Growth

How is BlackBerry forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BB's forecast earnings growth (19.6% per year) is above the savings rate (1.9%).

Earnings vs Market: BB's earnings (19.6% per year) are forecast to grow faster than the Canadian market (13.6% per year).

High Growth Earnings: BB's earnings are forecast to grow, but not significantly.

Revenue vs Market: BB's revenue (9% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: BB's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BB's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

Past Performance

How has BlackBerry performed over the past 5 years?

56.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BB has become profitable over the past 5 years, growing earnings by 56.2% per year.

Accelerating Growth: BB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (23.6%).


Return on Equity

High ROE: BB's Return on Equity (1.2%) is considered low.


Return on Assets

ROA vs Industry: BB's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: BB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is BlackBerry's financial position?


Financial Position Analysis

Short Term Liabilities: BB's short term assets ($1.1B) exceeds its short term liabilities ($495.0M)

Long Term Liabilities: BB's short term assets (1.1B) exceeds its long term liabilities (876.0M)


Debt to Equity History and Analysis

Debt Level: BB's debt to equity ratio (24.5%) is considered satisfactory

Reducing Debt: BB's debt to equity ratio has reduced from 43.5% to 24.5% over the past 5 years.

Debt Coverage: BB's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: Insufficient data to determine if BB's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: BB has a low level of unsold assets or inventory.

Debt Coverage by Assets: BB's debt is covered by short term assets (assets are 1.803820x debt).


Next Steps

Dividend

What is BlackBerry's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BB's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of BlackBerry's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

John Chen (63yo)

5.9yrs

Tenure

US$109,579,950

Compensation

Mr. John S. Chen has been an Executive Chairman at BlackBerry Limited since November 4, 2013 and has been its Chief Executive Officer since November 4, 2013. He serves as an Advisor of WI Harper Group. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD109.58M) is about average for companies of similar size in the Canadian market ($USD2.91M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

62yo

Average Age

Experienced Management: BB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

5.9yrs

Average Tenure

65yo

Average Age

Experienced Board: BB's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: BB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$498,52727 Sep 19
Steven Capelli
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares70,000
Max PriceUS$7.13
SellUS$26,60015 Aug 19
Brandon Sweitzer
EntityIndividual
Shares4,000
Max PriceUS$6.65
SellUS$10604 Feb 19
Carl Wiese
EntityIndividual
Shares10
Max PriceUS$10.56
BuyUS$94,57325 Dec 18
Michael Daniels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.46
SellUS$24,530,75719 Nov 18
John Chen
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares2,072,441
Max PriceUS$11.89
SellUS$18,148,20718 Nov 18
John Chen
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,537,919
Max PriceUS$11.88

Ownership Breakdown


Management Team

  • John Chen (63yo)

    Executive Chairman & CEO

    • Tenure: 5.9yrs
    • Compensation: US$109.58m
  • Nita White-Ivy (72yo)

    Executive Vice President of Human Resources

    • Tenure: 0yrs
    • Compensation: US$1.49m
  • Stuart McClure (49yo)

    President of BlackBerry Cylance

    • Tenure: 0.7yrs
    • Compensation: US$29.92m
  • Steve Capelli (61yo)

    Chief Revenue Officer

    • Tenure: 0yrs
    • Compensation: US$4.21m
  • Charles Eagan

    Chief Technology Officer

    • Tenure: 1.3yrs
  • Bryan Palma

    President & COO

    • Tenure: 0.8yrs
  • Mark Wilson

    Chief Marketing Officer

    • Tenure: 5.8yrs
  • Steve Rai

    Chief Financial Officer

    • Tenure: 0yrs
  • Mike Webber

    Chief Information Officer & Chief Information Security Officer

    • Tenure: 2.4yrs
  • Randall Cook

    Chief Legal Officer & Corporate Secretary

    • Tenure: 1.2yrs
    • Compensation: US$1.72m

Board Members

  • John Chen (63yo)

    Executive Chairman & CEO

    • Tenure: 5.9yrs
    • Compensation: US$109.58m
  • Dick Lynch (70yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$206.41k
  • V. Watsa (69yo)

    Lead Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$221.70k
  • Mike Daniels (74yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$206.41k
  • Tim Dattels (55yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$206.41k
  • Barbara Stymiest (62yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$225.52k
  • Laurie Smaldone Alsup (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$206.41k
  • Wayne Wouters (68yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$206.41k
  • Lisa Disbrow (56yo)

    Director

    • Tenure: 0.2yrs

Company Information

BlackBerry Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BlackBerry Limited
  • Ticker: BB
  • Exchange: TSX
  • Founded: 1984
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$3.729b
  • Shares outstanding: 548.34m
  • Website: https://www.blackberry.com

Number of Employees


Location

  • BlackBerry Limited
  • 2200 University Avenue East
  • Waterloo
  • Ontario
  • N2K 0A7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1997
BBTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1997
BBSWX (SIX Swiss Exchange)YesCommon SharesCHCHFOct 1997
RI1DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1997
BB NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNOct 1997
0R0PLSE (London Stock Exchange)YesCommon SharesGBCADOct 1997

Biography

BlackBerry Limited provides enterprise software and services worldwide. The company offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:43
End of Day Share Price2019/10/21 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.