BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$10.03|
|52 Week High||CA$4.37|
|52 Week Low||CA$28.77|
|1 Month Change||4.92%|
|3 Month Change||-22.25%|
|1 Year Change||106.38%|
|3 Year Change||-3.65%|
|5 Year Change||26.80%|
|Change since IPO||421.22%|
Recent News & Updates
BlackBerry Limited (NYSE:BB) is Showing a Lot of Potential but no Real Indications of Growth
BlackBerry Limited (NYSE:BB) is a US$6.5b Market Cap CyberSecurity company, which lately garnered a lot of attention in the retail investment space. With the earnings report coming out on the 22nd September, we thought to examine BB's growth potential, financial performance and stability.
BlackBerry: Dying A Slow Death
Hopes of a business turnaround have not materialized yet. Meme buzz and short squeeze hopes are fading. BlackBerry is still significantly overvalued.
2 Cognitive Biases BlackBerry Bulls And Bears Need To Get Rid Of
Every time I look at the comments section of Seeking Alpha articles on BlackBerry, I am fascinated by the strong bull and bear cases presented by investors/readers. To remain objective and rational, I believe we, as investors, need to avoid 2 important cognitive biases. My stance on BlackBerry remains unchanged due to the reasons discussed in this analysis.
BlackBerry: All Hope Is Lost
BlackBerry once again disappointed its investors with a poor earnings report that it released two weeks ago. Considering the current state of affairs, we believe that there’s no hope for the recovery of the company’s business anytime soon. It is safe to assume that BlackBerry’s upside is limited and it is better to avoid BB stock.
The Apes Could Save BlackBerry
BlackBerry posted another negative quarter, with poor results and several red flags. At the current state of business, organic growth is a mirage and the firm has started to burn cash (again!). Robinhooders’ so-called "apes" may throw a lifeline: BlackBerry must raise capital and execute a meaningful acquisition before its stock price deteriorates.
|BB||US Software||US Market|
Return vs Industry: BB exceeded the US Software industry which returned 42.9% over the past year.
Return vs Market: BB exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: BB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: BB's weekly volatility has decreased from 15% to 8% over the past year.
About the Company
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 the areas of cybersecurity, safety, and data privacy; and endpoint security management, encryption, and embedded systems. It offers BlackBerry Spark software platform that includes a suite of security software products and services comprising BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces solutions; and BlackBerry Spark SDK to promote the evolution of a platform ecosystem by enabling enterprise and independent software vendor developers to integrate the security features of BlackBerry Spark into their own mobile and web applications.
BlackBerry Fundamentals Summary
|BB fundamental statistics|
Is BB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BB income statement (TTM)|
|Cost of Revenue||US$247.00m|
Last Reported Earnings
May 31, 2021
Next Earnings Date
Sep 22, 2021
|Earnings per share (EPS)||-0.94|
|Net Profit Margin||-61.56%|
How did BB perform over the long term?See historical performance and comparison
Is BlackBerry undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: BB ($10.03) is trading above our estimate of fair value ($8.62)
Significantly Below Fair Value: BB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BB is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: BB is unprofitable, so we can't compare its PE Ratio to the US 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 (4.3x) compared to the US Software industry average (7.6x).
How is BlackBerry forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: BB is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: BB's is expected to become profitable in the next 3 years.
Revenue vs Market: BB's revenue (13.9% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: BB's revenue (13.9% 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 (4.2%).
How has BlackBerry performed over the past 5 years?
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 3.9% 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 (22.1%).
Return on Equity
High ROE: BB has a negative Return on Equity (-36.4%), as it is currently unprofitable.
How is BlackBerry's financial position?
Financial Position Analysis
Short Term Liabilities: BB's short term assets ($953.0M) exceed its short term liabilities ($402.0M).
Long Term Liabilities: BB's short term assets ($953.0M) exceed its long term liabilities ($863.0M).
Debt to Equity History and Analysis
Debt Level: BB's debt to equity ratio (49.1%) is considered high.
Reducing Debt: BB's debt to equity ratio has reduced from 49.2% to 49.1% over the past 5 years.
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, even with free cash flow being positive and shrinking by 18.7% per year.
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 US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Chen (65 yo)
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 below average for companies of similar size in the US market ($USD6.44M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: BB's management team is considered experienced (3.1 years average tenure).
Experienced Board: BB's board of directors are considered experienced (7.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.
BlackBerry Limited's employee growth, exchange listings and data sources
- Name: BlackBerry Limited
- Ticker: BB
- Exchange: NYSE
- Founded: 1984
- Industry: Systems Software
- Sector: Software
- Market Cap: CA$7.967b
- Listing Market Cap: CA$6.249b
- Shares outstanding: 621.41m
- Website: https://www.blackberry.com
Number of Employees
- BlackBerry Limited
- 2200 University Avenue East
- N2K 0A7
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:13|
|End of Day Share Price||2021/09/17 00:00|
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.