BLACKBERRY Ltd (NYSE: BB)

Sector: Technology Industry: Software - Infrastructure CIK: 0001070235
Market Cap 2.80 Bn
P/B 3.78
P/E 128.00
P/S 5.22
ROIC (Qtr) 1.87
Div Yield % 0.00
Rev 1y % (Qtr) -1.25
Total Debt (Qtr) 217.40 Mn
Debt/Equity (Qtr) 0.29

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 699.60M provides 3.22x coverage of total debt 217.40M, indicating robust asset backing and low credit risk.
  • Tangible assets of 699.60M provide exceptional 5.55x coverage of deferred revenue 126.10M, showing strong service capability backing.
  • Robust free cash flow of 43M exceeds capital expenditure of 2.70M by 15.93x, indicating strong organic growth funding capability.
  • Cash reserves of 284.30M provide ample 3.56x coverage of acquisition spending 79.80M, enabling strategic growth opportunities.
  • Cash reserves of 284.30M provide robust 1.12x coverage of current liabilities 253.30M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 45.70M barely covers its investment activities of 69.50M, with a coverage ratio of 0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 69.50M provide weak support for R&D spending of 104M, which is 0.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 45.70M provides insufficient coverage of deferred revenue obligations of 126.10M, which is 0.36x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 45.70M shows concerning coverage of stock compensation expenses of 22.30M, with a 2.05 ratio indicating potential earnings quality issues.
  • Long-term investments of 59.30M represent a high 2.02x of fixed assets 29.40M, indicating potential overexposure to financial assets versus operational capabilities.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.24 2.69
EV to Cash from Ops. EV/CFO 59.81 28.91
EV to Debt EV to Debt 12.57 19.83
EV to EBIT EV/EBIT 100.87 -9.95
EV to EBITDA EV/EBITDA 69.73 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 63.57 26.09
EV to Market Cap EV to Market Cap 0.98 0.36
EV to Revenue EV/Rev 5.09 -9.34
Price to Book Value [P/B] P/B 3.78 3.88
Price to Earnings [P/E] P/E 128.00 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Interest Coverage 0.00 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 42.55 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 42.15 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 117.14 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.33 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 125.09 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 125.09 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 114.29 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 194.92 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.85 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.12 1.22
Current Ratio Curr Ratio (Qtr) 2.14 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.29 -0.96
Interest Cover Ratio Interest Cover Ratio 0.00 -14.20
Times Interest Earned Times Interest Earned 0.00 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.80 -548.16
EBIT Margin % EBIT Margin % (Qtr) 5.05 -199.84
EBT Margin % EBT Margin % (Qtr) 5.05 -607.20
Gross Margin % Gross Margin % (Qtr) 75.00 51.88
Net Profit Margin % Net Margin % (Qtr) 4.10 -610.00