BB

BlackBerryNYSE:BB Stock Report

Market Cap

CA$6.2b

7D

-3.7%

1Y

106.4%

Updated

18 Sep, 2021

Data

Company Financials +
BB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

BB Overview

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

BlackBerry Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BlackBerry
Historical stock prices
Current Share PriceCA$10.03
52 Week HighCA$4.37
52 Week LowCA$28.77
Beta1.01
1 Month Change4.92%
3 Month Change-22.25%
1 Year Change106.38%
3 Year Change-3.65%
5 Year Change26.80%
Change since IPO421.22%

Recent News & Updates

Sep 14
BlackBerry Limited (NYSE:BB) is Showing a Lot of Potential but no Real Indications of Growth

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.

Aug 19

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.

Aug 12

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.

Jul 13

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.

Jul 06

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.

Shareholder Returns

BBUS SoftwareUS Market
7D-3.7%0.9%-0.6%
1Y106.4%42.9%33.8%

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.

Price Volatility

Is BB's price volatile compared to industry and market?
BB volatility
BB Beta1.01
Industry Beta0.95
Market Beta1

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

FoundedEmployeesCEOWebsite
19843,497John Chenhttps://www.blackberry.com

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

How do BlackBerry's earnings and revenue compare to its market cap?
BB fundamental statistics
Market CapUS$6.25b
Earnings (TTM)-US$530.00m
Revenue (TTM)US$861.00m

7.3x

P/S Ratio

-11.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BB income statement (TTM)
RevenueUS$861.00m
Cost of RevenueUS$247.00m
Gross ProfitUS$614.00m
ExpensesUS$1.14b
Earnings-US$530.00m

Last Reported Earnings

May 31, 2021

Next Earnings Date

Sep 22, 2021

Earnings per share (EPS)-0.94
Gross Margin71.31%
Net Profit Margin-61.56%
Debt/Equity Ratio49.1%

How did BB perform over the long term?

See historical performance and comparison

Valuation

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

4.29x

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).


Future Growth

How is BlackBerry forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

64.7%

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%).


Past Performance

How has BlackBerry performed over the past 5 years?

3.9%

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.


Financial Health

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.


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, even with free cash flow being positive and shrinking by 18.7% per year.


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 US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

John Chen (65 yo)

7.83yrs

Tenure

US$3,006,608

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 ($USD3.01M) is below average for companies of similar size in the US market ($USD6.44M).

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


Leadership Team

Experienced Management: BB's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: BB's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 11.7%.


Top Shareholders

Company Information

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


Key Information

  • 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


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:13
End of Day Share Price2021/09/17 00:00
Earnings2021/05/31
Annual Earnings2021/02/28


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.