BLACKBERRY Ltd (NYSE: BB)

Sector: Technology Industry: Software - Infrastructure CIK: 0001070235
P/B 1.70
P/E -439.00
P/S 2.28
Market Cap 1.23 Bn
ROIC (Qtr) 2.76
Div Yield % 0.00
Rev 1y % (Qtr) 2.69
Total Debt (Qtr) 220.90 Mn
Debt/Equity (Qtr) 0.30

About

Stock Price Chart

Analysis

Pros

  • Strong tangible asset base of 663.60M provides 3x coverage of total debt 220.90M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 28.60M exceeds capital expenditure of 1.80M by 15.89x, indicating strong organic growth funding capability.
  • Cash reserves of 290.60M provide ample 3.64x coverage of acquisition spending 79.80M, enabling strategic growth opportunities.
  • Cash reserves of 290.60M provide robust 1.26x coverage of current liabilities 230.20M, indicating strong short-term solvency.
  • R&D investment of 101.40M represents healthy 0.75x of deferred revenue 135.20M, indicating strong future innovation pipeline.

Cons

  • Operating cash flow of 30.40M barely covers its investment activities of 98.50M, with a coverage ratio of 0.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 98.50M provide weak support for R&D spending of 101.40M, which is 0.97x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 30.40M provides insufficient coverage of deferred revenue obligations of 135.20M, which is 0.22x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 30.40M shows concerning coverage of stock compensation expenses of 22.20M, with a 1.37 ratio indicating potential earnings quality issues.
  • Long-term investments of 58.80M represent a high 1.82x of fixed assets 32.30M, indicating potential overexposure to financial assets versus operational capabilities.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.98 2.56
EV to Cash from Ops. 38.11 38.32
EV to Debt 5.24 -11.37
EV to EBIT 139.59 -12.79
EV to EBITDA 20.95 7.72
EV to Free Cash Flow [EV/FCF] 40.51 24.22
EV to Market Cap 0.94 0.58
EV to Revenue 2.15 -35.00
Price to Book Value [P/B] 1.70 3.74
Price to Earnings [P/E] -439.00 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 69.49 -404.11
Cash and Equivalents Growth (1y) % 54.57 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 97.98 31.15
EBITDA Growth (1y) % 20.22 49.02
EBIT Growth (1y) % 107.54 25.85
EBT Growth (1y) % 107.54 17.82
EPS Growth (1y) % 95.65 70.69
FCF Growth (1y) % 134.25 295.45
Gross Profit Growth (1y) % -3.92 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.45 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 1.26 1.21
Current Ratio 2.20 2.57
Debt to Equity Ratio 0.30 -0.93
Interest Cover Ratio 0.00 -13.15
Times Interest Earned 0.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 6.90 -544.82
EBIT Margin % 1.54 -197.78
EBT Margin % 1.54 -602.74
Gross Margin % 75.20 52.06
Net Profit Margin % -0.50 -605.52