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.

BlackBerry Ltd.

Constellation Software, Inc.

Enghouse Systems Ltd.

Topicus.com, Inc.

Lightspeed Commerce, Inc.

Lumine Group, Inc.

Dye & Durham Ltd.

Docebo, Inc.

Why is BlackBerry Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.57% and Operating profit at 21.12% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 101.43 MM
NET PROFIT(HY) At CAD 50.79 MM has Grown at 148.09%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 9.28%, it has a fair valuation with a 7.06 Price to Book Value

Over the past year, while the stock has generated a return of 140.63%, its profits have risen by 1213.8% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 54.96%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.02% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 140.63% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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, High Return

Absolute

Risk Adjusted

Volatility

BlackBerry Ltd.

140.62%

2.07

60.10%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.57%

EBIT Growth (5y)

21.12%

EBIT to Interest (avg)

-15.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.64

Tax Ratio

15.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

54.96%

ROCE (avg)

3.33%

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

7.06

EV to EBIT

76.34

EV to EBITDA

60.08

EV to Capital Employed

8.64

EV to Sales

9.16

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

11.31%

ROE (Latest)

9.28%

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 101.43 MM

NET PROFIT(HY)

At CAD 50.79 MM has Grown at 148.09%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 8.12%

DEBT-EQUITY RATIO (HY)

Lowest at -17.29 %

RAW MATERIAL COST(Y)

Fallen by -8.21% (YoY

-6What is not working for the Company

INTEREST(HY)

At CAD 4.12 MM has Grown at 16.45%

NET PROFIT(Q)

At CAD 11.96 MM has Fallen at -49.37%

Here's what is working for BlackBerry Ltd.

Operating Cash Flow

Highest at CAD 101.43 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)

Debt-Equity Ratio

Lowest at -17.29 % and Grown

In each half year 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 -8.21% (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.

Net Profit

At CAD 11.96 MM has Fallen at -49.37%

over average net sales of the previous four periods of CAD 23.62 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 4.12 MM has Grown at 16.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)