BlackBerry Limited
BlackBerry Limited Fundamental Analysis
BlackBerry Limited (BB) shows weak financial fundamentals with a PE ratio of 90.63, profit margin of 4.08%, and ROE of 3.01%. The company generates $0.5B in annual revenue with strong year-over-year growth of 44.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BB's fundamental strength across five key dimensions:
Efficiency Score
WeakBB struggles to generate sufficient returns from assets.
Valuation Score
ModerateBB shows balanced valuation metrics.
Growth Score
ExcellentBB delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBB maintains a strong and stable balance sheet.
Profitability Score
WeakBB struggles to sustain strong margins.
Key Financial Metrics
Is BB Expensive or Cheap?
P/E Ratio
BB trades at 90.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BB's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values BlackBerry Limited at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 39.11 times EBITDA. This signals the market has high growth expectations.
How Well Does BB Make Money?
Net Profit Margin
For every $100 in sales, BlackBerry Limited keeps $4.08 as profit after all expenses.
Operating Margin
Core operations generate 3.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.01 in profit for every $100 of shareholder equity.
ROA
BlackBerry Limited generates $1.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BlackBerry Limited generates limited operating cash flow of $45.33M, signaling weaker underlying cash strength.
Free Cash Flow
BlackBerry Limited produces free cash flow of $39.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.07 in free cash annually.
FCF Yield
BB converts 2.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
90.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How BB Stacks Against Its Sector Peers
| Metric | BB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 90.63 | 34.79 | Worse (Expensive) |
| ROE | 3.01% | 1185.00% | Weak |
| Net Margin | 4.08% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 2.15 | 4.90 | Strong Liquidity |
| ROA | 1.80% | -325472.00% (disorted) | Weak |
BB outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BlackBerry Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.36%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-229.45%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-102.77%
Industry Style: Growth, Innovation, High Beta
Declining