Bombardier Inc.
Bombardier Inc. Fundamental Analysis
Bombardier Inc. (BBD-B.TO) shows weak financial fundamentals with a PE ratio of 18.78, profit margin of 9.72%, and ROE of -61.55%. The company generates $9.6B in annual revenue with moderate year-over-year growth of 7.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.0/100 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 BBD-B.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakBBD-B.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBD-B.TO trades at attractive valuation levels.
Growth Score
ModerateBBD-B.TO shows steady but slowing expansion.
Financial Health Score
ExcellentBBD-B.TO maintains a strong and stable balance sheet.
Profitability Score
WeakBBD-B.TO struggles to sustain strong margins.
Key Financial Metrics
Is BBD-B.TO Expensive or Cheap?
P/E Ratio
BBD-B.TO trades at 18.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BBD-B.TO's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Bombardier Inc. at -19.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.58 times EBITDA. This is generally considered low.
How Well Does BBD-B.TO Make Money?
Net Profit Margin
For every $100 in sales, Bombardier Inc. keeps $9.72 as profit after all expenses.
Operating Margin
Core operations generate 11.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-61.55 in profit for every $100 of shareholder equity.
ROA
Bombardier Inc. generates $6.84 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 $1.33B, showing steady but balanced cash generation.
Free Cash Flow
Bombardier Inc. generates strong free cash flow of $1.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.71 in free cash annually.
FCF Yield
BBD-B.TO converts 6.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
-19.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.62
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How BBD-B.TO Stacks Against Its Sector Peers
| Metric | BBD-B.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.78 | 25.85 | Better (Cheaper) |
| ROE | -61.55% | 1270.00% | Weak |
| Net Margin | 9.72% | -41866.00% (disorted) | Weak |
| Debt/Equity | -5.80 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.11 | 10.04 | Neutral |
| ROA | 6.84% | -1493990.00% (disorted) | Weak |
BBD-B.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
11.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
119.92%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
155.04%
Industry Style: Cyclical, Value, Infrastructure
High Growth