Bombardier Inc. Fundamental Analysis (TSX: BBD-PB.TO)
Bombardier Inc. (TSX: BBD-PB.TO) shows moderate financial fundamentals with a PE ratio of 24.14, profit margin of 9.60%, and ROE of -93.00%. The company generates $49.6B in annual revenue with strong year-over-year growth of 10.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.3/100 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-PB.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakBBD-PB.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBD-PB.TO trades at attractive valuation levels.
Growth Score
ModerateBBD-PB.TO shows steady but slowing expansion.
Financial Health Score
ExcellentBBD-PB.TO maintains a strong and stable balance sheet.
Profitability Score
WeakBBD-PB.TO struggles to sustain strong margins.
Key Financial Metrics
Is BBD-PB.TO Expensive or Cheap?
P/E Ratio
BBD-PB.TO trades at 24.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BBD-PB.TO's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Bombardier Inc. at -35.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.14 times EBITDA. This signals the market has high growth expectations.
How Well Does BBD-PB.TO Make Money?
Net Profit Margin
For every $100 in sales, Bombardier Inc. keeps $9.60 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 $-93.00 in profit for every $100 of shareholder equity.
ROA
Bombardier Inc. generates $6.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bombardier Inc. generates strong operating cash flow of $12.51B, reflecting robust business health.
Free Cash Flow
Bombardier Inc. generates strong free cash flow of $11.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.29 in free cash annually.
FCF Yield
BBD-PB.TO converts 9.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
-35.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.93
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-PB.TO Stacks Against Its Sector Peers
| Metric | BBD-PB.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.14 | 29.34 | Better (Cheaper) |
| ROE | -93.00% | 1104.00% | Weak |
| Net Margin | 9.60% | -25189.00% (disorted) | Weak |
| Debt/Equity | -6.23 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 1.13 | 21.76 | Neutral |
| ROA | 6.60% | -1328228.00% (disorted) | Weak |
BBD-PB.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
43.43%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
204.15%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
140.96%
Industry Style: Cyclical, Value, Infrastructure
High Growth