BlackBerry Ltd. (BB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Open Text Corp.

The Descartes Systems Group, Inc.

Kinaxis, Inc.

Enghouse Systems Ltd.

BlackBerry Ltd.

Constellation Software, Inc.

Topicus.com, Inc.

Lumine Group, Inc.

Dye & Durham Ltd.

Lightspeed Commerce, Inc.

Docebo, Inc.

Why is BlackBerry Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -10.45% and Operating profit at 16.57% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 100.31%, its profits have risen by 135.1% ; the PEG ratio of the company is 1.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BlackBerry Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is BlackBerry Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

BlackBerry Ltd.

73.53%

0.29

60.61%

S&P/TSX 60

29.97%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.36%

EBIT Growth (5y)

22.15%

EBIT to Interest (avg)

-19.61

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.63

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

53.94%

ROCE (avg)

0.76%

ROE (avg)

0.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.60

EV to EBIT

36.52

EV to EBITDA

26.07

EV to Capital Employed

2.85

EV to Sales

3.41

PEG Ratio

1.62

Dividend Yield

ROCE (Latest)

7.79%

ROE (Latest)

6.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 69.79 MM

ROCE(HY)

Highest at 7.15%

INTEREST COVERAGE RATIO(Q)

Highest at 2,040

RAW MATERIAL COST(Y)

Fallen by -8.67% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -18.11 %

NET SALES(Q)

Highest at CAD 214.48 MM

OPERATING PROFIT(Q)

Highest at CAD 42.07 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.62 %

PRE-TAX PROFIT(Q)

Highest at CAD 41.38 MM

NET PROFIT(Q)

Highest at CAD 38.83 MM

EPS(Q)

Highest at CAD 0.05

-2What is not working for the Company

INTEREST(HY)

At CAD 4.15 MM has Grown at 18.97%

Here's what is working for BlackBerry Ltd.

Operating Cash Flow

Highest at CAD 69.79 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 2,040

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CAD 41.38 MM has Grown at 99.42%

over average net sales of the previous four periods of CAD 20.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 38.83 MM has Grown at 116.32%

over average net sales of the previous four periods of CAD 17.95 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales

Highest at CAD 214.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 42.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 19.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 41.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 38.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at -18.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for BlackBerry Ltd.

Interest

At CAD 4.15 MM has Grown at 18.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)