BlackBerry Stock Analysis, Valuation (NYSE:BB)

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$12.2 $0.09 (0.74%) BB stock closing price Feb 21, 2018 (Closing)
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BlackBerry
Updated on : Feb 21, 2018
previous close
BB 12.2 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Non-US
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-39.9%
Operating Profit
Operating Margin:
43.7%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
816M
Debt/Equity Ratio:
 0.33
Compared to the industry
Cash Flow
Operating cash flow:
-$1M
Net Income:
-$275M
PROS      CONS
Operating Margins
ROIC
ROE
Recent Growth
Long Term Growth
High Debt Burden
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BB PS :
6.6
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
35.3%
Return on Equity:
15.2%
Free Cash Flow Margin:
-1.8%
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BlackBerry Stock Analysis

5 3

Take a look at Amigobulls BlackBerry stock analysis video. Our BB analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

BlackBerry Ltd Stock Rating 3.6/5

Amigobulls BB stock analysis uses latest quarter 2018 Q3 financial data like BlackBerry revenue growth, profit margins and cash flows. BlackBerry valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. BlackBerry stock rating is our opinion about the business fundamentals of the company.

Should you buy BB stock?

  • BlackBerry had a healthy average operating margin of 43.7% over the last 4 quarters.
  • BlackBerry generates a high return on invested capital of 35.3%.
  • The LTM ROE of 15.2% for BlackBerry is attractive.

Should you sell BB stock?

  • BlackBerry sales shrank by -24.9% year-over-year in 2018 Q3.
  • The company saw an average annual sales decline of -39.9% in sales over the last 5 years.
  • BlackBerry has a debt/equity ratio of  0.33, which is worse than the average in the Computer and Technology sector.
  • The BB stock currently trades at a PE of 406.7, which is expensive, compared to the industry average of 25.3.
  • The company is trading at a price to sales multiple of 6.6, which is overvalued in comparison to the Wireless Non-US industry average multiple of 2.8.
  • BlackBerry has a negative FCF (Free Cash Flow) margin of -1.8%.

Comments on this video and BlackBerry stock

Amigobulls BlackBerry stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, BlackBerry revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of BB technical analysis to check whether the fundamental story is reflected in the market sentiment.