Bombardier Inc. Fundamental Analysis (TSX: BBD-A.TO)
Bombardier Inc. (TSX: BBD-A.TO) shows weak financial fundamentals with a PE ratio of 26.59, profit margin of 9.75%, and ROE of -75.01%. The company generates $9.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BBD-A.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakBBD-A.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateBBD-A.TO shows balanced valuation metrics.
Growth Score
ModerateBBD-A.TO shows steady but slowing expansion.
Financial Health Score
ExcellentBBD-A.TO maintains a strong and stable balance sheet.
Profitability Score
WeakBBD-A.TO struggles to sustain strong margins.
Key Financial Metrics
Is BBD-A.TO Expensive or Cheap?
P/E Ratio
BBD-A.TO trades at 26.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BBD-A.TO's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Bombardier Inc. at -28.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.79 times EBITDA. This signals the market has high growth expectations.
How Well Does BBD-A.TO Make Money?
Net Profit Margin
For every $100 in sales, Bombardier Inc. keeps $9.75 as profit after all expenses.
Operating Margin
Core operations generate 11.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-75.01 in profit for every $100 of shareholder equity.
ROA
Bombardier Inc. generates $6.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bombardier Inc. produces operating cash flow of $1.98B, showing steady but balanced cash generation.
Free Cash Flow
Bombardier Inc. generates strong free cash flow of $1.81B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.34 in free cash annually.
FCF Yield
BBD-A.TO converts 7.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
-28.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.75
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How BBD-A.TO Stacks Against Its Sector Peers
| Metric | BBD-A.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.59 | 30.52 | Better (Cheaper) |
| ROE | -75.01% | 1172.00% | Weak |
| Net Margin | 9.75% | -20786.00% (disorted) | Weak |
| Debt/Equity | -5.28 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 1.16 | 24.22 | Neutral |
| ROA | 6.81% | -1311221.00% (disorted) | Weak |
BBD-A.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bombardier Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure