TSX:BB

Stock Analysis Report

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Executive Summary

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. More Details


Snowflake Analysis

Flawless 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

Stable Share Price: BB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

BB

-1.5%

CA Software

1.1%

CA Market


1 Year Return

-37.8%

BB

19.3%

CA Software

-7.0%

CA Market

Return vs Industry: BB underperformed the Canadian Software industry which returned 19.3% over the past year.

Return vs Market: BB underperformed the Canadian Market which returned -7% over the past year.


Shareholder returns

BBIndustryMarket
7 Day-0.3%-1.5%1.1%
30 Day-1.6%-2.5%-1.2%
90 Day-10.9%1.0%6.8%
1 Year-37.8%-37.8%19.6%19.3%-3.7%-7.0%
3 Year-44.7%-44.7%77.5%73.7%10.3%-0.4%
5 Year-27.9%-27.9%131.4%123.3%43.7%21.6%

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?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BB (CA$6.23) is trading below our estimate of fair value (CA$8.81)

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


Price To Earnings Ratio

PE vs Industry: BB is unprofitable, so we can't compare its PE Ratio to the CA Software industry average.

PE vs Market: BB 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 BB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BB is good value based on its PB Ratio (1.4x) compared to the CA Software industry average (3.5x).


Next Steps

Future Growth

How is BlackBerry forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

93.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BB's revenue (8.2% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: BB's revenue (8.2% 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 BB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BlackBerry performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BB is currently unprofitable.

Growing Profit Margin: BB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BB is unprofitable, but has reduced losses over the past 5 years at a rate of 19.3% per year.

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

Earnings vs Industry: BB is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (41.3%).


Return on Equity

High ROE: BB has a negative Return on Equity (-39.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is BlackBerry's financial position?


Financial Position Analysis

Short Term Liabilities: BB's short term assets ($1.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: BB's short term assets ($1.2B) exceed its long term liabilities ($211.0M).


Debt to Equity History and Analysis

Debt Level: BB's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: BB's debt to equity ratio has reduced from 43.9% to 29.6% over the past 5 years.


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 BB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BB'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 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

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

2.3yrs

Average management tenure


CEO

John Chen (64 yo)

6.83yrs

Tenure

US$3,014,000

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 ($USD3.01M) is about average for companies of similar size in the Canadian market ($USD3.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Chen
Executive Chairman & CEO6.83yrsUS$3.01m1.22%
$ 42.3m
Steve Rai
Chief Financial Officer0.92yrUS$1.48m0.0029%
$ 99.5k
Randall Cook
Chief Legal Officer & Corporate Secretary2.08yrsUS$1.09m0.0025%
$ 85.6k
Nita White-Ivy
Executive Vice President of Human Resourcesno dataUS$1.20m0.037%
$ 1.3m
Sai Ho
Executive Vice President of BlackBerry Spark Group Products & Value Added Solutions4.92yrsUS$1.45m0.034%
$ 1.2m
Steven Capelli
Chief Revenue Officer0.92yrUS$5.02m0.037%
$ 1.3m
Thomas Eacobacci
President0.25yrno datano data
Charles Eagan
Chief Technology Officer2.25yrsno datano data
Christopher Hummel
Chief Information Officer0.92yrno datano data
Mark Wilson
Chief Marketing Officer6.67yrsno data0.019%
$ 673.2k
Vito Giallorenzo
Senior Vice President of Corporate Development & Strategic Partnership2.92yrsno datano data
John Wall
SVP and Co-Head of BlackBerry Technology Solutions - Products2.67yrsno datano data

2.3yrs

Average Tenure

63.5yo

Average Age

Experienced Management: BB's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Chen
Executive Chairman & CEO6.83yrsUS$3.01m1.22%
$ 42.3m
Richard Lynch
Independent Director7.58yrsUS$203.68kno data
V. Watsa
Lead Independent Director6.83yrsUS$218.77k0.023%
$ 803.5k
Michael Daniels
Independent Director5.92yrsUS$203.68k0.0047%
$ 162.6k
Timothy Dattels
Independent Director8.17yrsUS$203.68kno data
Barbara Stymiest
Independent Director13.5yrsUS$222.54k0.0018%
$ 62.4k
Laurie Smaldone Alsup
Independent Director5.25yrsUS$203.68kno data
Wayne Wouters
Independent Director4.92yrsUS$203.68kno data
Lisa Disbrow
Independent Director1.08yrsUS$218.32kno data

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: BB's board of directors are considered experienced (6.8 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.


Top Shareholders

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$3.466b
  • Shares outstanding: 556.41m
  • 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
BBBASE (Buenos Aires Stock Exchange)CEDEAR(REPR 1/3 SHR)ARARSFeb 2013

Biography

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company leverages artificial intelligence and machine learning to deliver solutions in t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 05:45
End of Day Share Price2020/09/17 00:00
Earnings2020/05/31
Annual Earnings2020/02/29


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.