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Bombardier Cl A MV (TSE:BBD.A)
:BBD.A
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Bombardier Cl A MV
(TSX:BBD.A)
64Neutral
Bombardier Cl A MV (BBD.A) vs. S&P 500 (SPY)
Market Cap
C$7.91B
Dividend YieldN/A
Average Volume (3M)16.05K
Price to Earnings (P/E)17.2
Beta (1Y)1.86
Revenue Growth9.57%
EPS Growth-27.38%
CountryCA
Employees17,900
SectorIndustrials
Sector Strength65
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.72
Shares Outstanding12,349,278
10 Day Avg. Volume12,846
30 Day Avg. Volume16,054
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)1.70
P/FCF Ratio1.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bombardier Cl A MV Business Overview & Revenue Model
Company DescriptionBombardier Inc. is a global leader in the transportation industry, specializing in the design, manufacture, and support of business jets and commercial aircraft. With its headquarters in Montreal, Canada, Bombardier operates in various sectors, focusing primarily on the aerospace industry. The company is well-known for its innovative aircraft designs and comprehensive range of services, which include aircraft customization, refurbishment, and maintenance. Bombardier serves a diverse clientele, ranging from individual private jet owners to large corporate fleets.
How the Company Makes MoneyBombardier makes money primarily through the sale of business jets and related aerospace services. The company generates revenue from the production and sale of various models of Learjet, Challenger, and Global business jets, which are highly regarded in the private aviation market. In addition to aircraft sales, Bombardier earns income from aftermarket services, including maintenance, repair, overhaul (MRO), and the sale of spare parts. These services provide a recurring revenue stream as they support the existing fleet of Bombardier aircraft worldwide. Additionally, Bombardier engages in significant partnerships and collaborations with other aerospace companies and suppliers to enhance its product offerings and expand its market reach. These strategic alliances contribute to the company's overall earnings by facilitating access to new technologies and markets.
Bombardier Cl A MV Financial Statement Overview
Summary
Bombardier is experiencing revenue growth and maintains decent operational profitability, as seen in its EBITDA margin. However, the company's balance sheet is weak, with high leverage and negative equity, posing significant financial risks. Cash flow performance is moderate, with operating cash flows being strong but free cash flow showing a downward trend. Overall, the company needs to address its debt management and equity position to ensure long-term financial stability.Income Statement
Bombardier has shown consistent revenue growth over the past few years, with a notable revenue increase of 7.69% from 2023 to 2024. The gross profit margin for 2024 is robust at approximately 20.6%, indicating efficient production and pricing strategies. However, the company recorded zero EBIT for 2024, which is a concern for operational profitability. EBITDA margin remains healthy at around 13.5%, showing strong cash earnings relative to revenue.72
Positive
Balance Sheet
Bombardier's balance sheet reveals significant challenges, with a negative stockholders' equity position indicating that liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, but the high level of debt relative to total assets suggests potential leverage risks. The negative equity ratio further highlights the company's financial instability, necessitating close monitoring of debt management and financial restructuring.45
Neutral
Cash Flow
The company's operating cash flow to net income ratio is approximately 1.09 for 2024, suggesting effective cash generation relative to net income. However, free cash flow has declined slightly compared to the previous year, with a negative growth rate of -9.73%. This decline in free cash flow growth may indicate issues in capital management or investment activities.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.66B | 8.05B | 6.91B | 6.08B | 6.49B | Gross Profit |
| 1.78B | 1.63B | 1.26B | 924.00M | 516.00M | EBIT |
| 0.00 | 786.00M | 307.00M | 218.00M | -423.00M | EBITDA |
| 1.17B | 933.00M | 722.00M | 635.00M | 87.00M | Net Income Common Stockholders |
| 370.00M | 445.00M | -128.00M | -249.00M | -170.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.68B | 1.69B | 1.76B | 1.75B | 2.68B | Total Assets |
| 12.67B | 12.46B | 12.32B | 12.76B | 23.09B | Total Debt |
| 5.54B | 5.61B | 5.98B | 7.05B | 10.07B | Net Debt |
| 3.89B | 4.01B | 4.69B | 5.37B | 7.63B | Total Liabilities |
| 14.66B | 14.86B | 15.09B | 15.85B | 29.75B | Stockholders Equity |
| -1.99B | -2.40B | -2.76B | -3.09B | -9.32B |
| Cash Flow | Free Cash Flow | |||
| 232.00M | 257.00M | 717.00M | 95.00M | -3.19B | Operating Cash Flow |
| 405.00M | 623.00M | 1.07B | 332.00M | -2.82B | Investing Cash Flow |
| -164.00M | 118.00M | -304.00M | -89.00M | 967.00M | Financing Cash Flow |
| -203.00M | -438.00M | -1.13B | -3.21B | 1.71B |
Bombardier Cl A MV Technical Analysis
Negative
80.30
Price Trends
84.98
Negative
91.30
Negative
92.75
Negative
Market Momentum
-0.74
Positive
44.76
Neutral
14.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.A, the sentiment is Negative. The current price of 80.3 is below the 20-day moving average (MA) of 83.24, below the 50-day MA of 84.98, and below the 200-day MA of 92.75, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BBD.A.
Bombardier Cl A MV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$562.07M | 21.58 | 8.37% | 1.38% | 2.41% | -16.76% | |
70 Outperform | $11.21B | ― | -5.31% | ― | 1.44% | -183.14% | |
68 Neutral | C$727.43M | 20.51 | 4.63% | 0.79% | 7.13% | 285.41% | |
67 Neutral | C$4.80B | 2.96 | 112.28% | ― | 1.93% | -24.67% | |
64 Neutral | C$7.91B | 17.21 | -23.10% | ― | 9.57% | -27.38% | |
62 Neutral | $8.05B | 13.60 | 4.04% | 3.11% | 3.70% | -14.19% | |
46 Neutral | C$530.71M | ― | -1.28% | ― | -12.40% | -529.26% |
* Industrials Sector Average
Performance Comparison
TSE:BBD.A
Bombardier Cl A MV
81.21
23.66
41.11%
TSE:CAE
CAE
35.38
7.92
28.84%
TSE:AC
Air Canada
14.17
-5.95
-29.57%
TSE:CHR
Chorus Aviation
18.94
4.73
33.29%
TSE:MAL
Magellan Aerospace
12.85
4.85
60.62%
TSE:BDI
Black Diamond
8.95
0.28
3.23%
Bombardier Cl A MV Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -6.15% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Bombardier demonstrated strong financial performance in 2024, with record service revenue, improved credit ratings, and a reduced net leverage. However, the looming threat of tariffs introduces significant uncertainty for 2025, alongside ongoing supply chain challenges.Highlights
Record Service Revenue Achievement
Reached $2 billion in service revenue, a full year ahead of schedule, doubling from $1 billion in less than five years.
Credit Rating Upgrades
Both Moody's and S&P Global Ratings upgraded Bombardier's credit rating again in 2024.
Strong Adjusted EBITDA Margin
Finished 2024 with a 15.7% adjusted EBITDA margin, an 11% year-over-year increase.
Net Leverage Reduction
Net leverage reduced to 2.9x, achieving the 2025 goal one year early.
High Market Demand
Orders continue to come in from around the world with a healthy backlog of $14.4 billion and a book-to-bill ratio of 1.
Lowlights
Tariff Uncertainty
The potential threat of tariffs impacting Bombardier's ability to guide for 2025 and introducing significant uncertainty.
Supply Chain Challenges
Ongoing supply chain pressures creating a drag on EBITDA margins by more than 50 basis points.
Reduction in Customer Advances
Customer advances reduced by $353 million in 2024 due to conservative sales approach for Global 8000 positions.
Company Guidance
During the Bombardier earnings call for the fiscal year 2024, the company reported a significant achievement of $2 billion in service revenue, a year ahead of schedule, marking a doubling of their high-margin business in less than five years. Despite the uncertainty surrounding potential tariffs, Bombardier highlighted strong market conditions in business aviation with high flight hours and a healthy demand for new aircraft. The company achieved an adjusted EBITDA margin of 15.7% for the year, with a particularly strong performance in the fourth quarter at 16.5%. Bombardier's net leverage was reduced to 2.9x, surpassing their initial 2025 target a year early, with debt down by 48% since 2020. The company's backlog increased to $14.4 billion, sustaining a book-to-bill ratio of 1 or higher. Moreover, Bombardier's credit rating was upgraded by both Moody's and S&P Global Ratings in 2024. Although they refrained from providing 2025 guidance due to tariff uncertainties, the company emphasized its resilience and readiness to navigate potential challenges, underpinned by its strong balance sheet and diversified portfolio.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.