Canadian stock report - Bombardier

CANA

Bombardier Class B decreases January 19, 2018 17:00 EST

NEWS BITES - NORTH AMERICA

Bombardier Inc. (TSX:BBD.B), Canada's 2nd largest Aerospace & defense company by market cap, has decreased 1.0c (0.3%) from its last trading session of January 18 to close at CAD3.13. Compared with the S&P/TSX 60 Index which rose 3.5 points (0.4%) in the day, the relative price change was -0.7%. The volume was 0.8 times the average daily trading volume of 8.2 million shares.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicator

SECTION 2 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators, A positive finish to 2017, Moving Annual Return, Beta, Aggregate Volumes, Prices and Turnover Period

SECTION 3 RANKING

Global, Independent Ratings

SECTION 4 FINANCIALS

SECTION 5 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 6 STOCK BUZZ

SECTION 1 BOMBARDIER CLASS B BEARISH SIGNALS

1.1 Fundamentals:

+ Total Liabilities/EBITDA of 2,192.9 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ Revenue growth has shown signs of deterioration in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit Margin
Sep 17-6.3-3.1
Jun 1714.4-7.2

+ Revenue growth rate has shown signs of deterioration in recent years. [Year ended, all figures in %]

YearRevenue GrowthEBITDA Growth
Dec 16-10.1-
Dec 15-9.6-
Dec 1411.7-81.2

1.2 Technicals:

+ The present value of CAD1,000 (PV1000) invested five years ago in Bombardier Class B is CAD844, including a capital loss of CAD202 and dividend reinvested of CAD46.

+ 5 years Multiplier in CAD = 0.844x

+ Compound Annual Growth Rate (CAGR) in CAD = -3.3%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Bombardier Class B is $US670, including a capital loss of $US366 and dividend reinvested of $US36.

+ 5 years ago CAD 1 equalled USD 1.0139

+ 5 years Multiplier in USD = 0.67x

+ Compound Annual Growth Rate (CAGR) in USD = -7.7%

Jan 19, 2018: CAD 1 equals USD 0.81

1.3 Overbought/Bearish/Resistance Signals:

+ The stock is overbought according to the Williams % R indicator of -5.7, suggesting the price is close to its 14-day high of CAD3.15.

+ The Stochastic indicator of 94.5 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

1.4 Low Performance Indicator:

DescriptionValueRank In Market
EBITDA Margin %0.1In Bottom 1%

SECTION 2 BOMBARDIER CLASS B BULLISH SIGNALS

2.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 8% of stock by value of Q Ratio.

2.2 Technicals:

+ The 3.4% discount to 12-month high of CAD3.24 against the 59.7% premium to 12-month low of CAD1.96 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high thrice.

+ The present value of CAD1,000 (PV1000) invested one year ago in Bombardier Class B is CAD1,168, for a capital gain of CAD168.

PV$10001-week1-month1-year
BBD.B.TSX1,0231,0231,168
S&P/TSX 60 Index1,0021,0091,063

2.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCAD20.8 million (US$16.8 million)In Top 4%
Price to Sales0.3In Top Quartile
Price/MAP2001.21In Top Quartile
P/E * P/NTA3.72In Top Quartile
Volatility %1.0In Top Quartile
Price/MAP501.01In Top Quartile

2.4 A positive finish to 2017

The stock has soared 87.0c (or 40.3%) in FY 2017 bringing its two-year rise to 126.1%. The stock last traded at CAD3.03. The average daily volume of 6.4 million shares in FY 2017 was 0.9 times the average daily volume in FY 2016.

2.5 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in BBD.B would have produced a return of 16.8%.

BBD.BClose (CAD)Dividends (CAD)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 193.13-16.8-16.8
1 Yr ago2.68-129.1-129.1
2 Yrs ago1.17-(59.5)-(59.5)
3 Yrs ago2.890.12(28.0)2.9(25.1)
4 Yrs ago4.010.122.43.15.5

Close 5 years ago CAD3.92

2.6 Beta:

+ Beta: the Beta of Bombardier Class B stock is 0.1. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

2.7 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ Toronto: BBD.B.TSX 6,647,874 [VI of 0.8] volume 99.59% of aggregate. Price: CAD3.13.

+ Frankfurt: BBDB.FRA 27,550 [VI of 0.2] volume 0.41% of aggregate. Price: EUR2.04. Using the current exchange rate of EUR1 equals 1.5223CAD, The shares are at a 0.8% discount to the close price on Toronto.

+ Aggregate volume: there were 6.7 million shares of Bombardier Class B worth CAD20.9 million traded today. The aggregate volume was 0.8 times average trading of 8.3 million shares.

The turnover rate in the 12 months to date was 69.8% (or a turnover period of 1 year 5 months). This average length of ownership of the stock at 0.7 times the average holding period of 2 years 18 days for stocks in the S&P/TSX 60 Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 3 RANKING

3.1 Global Rank [out of 47,420 stocks] and Rank in the American Region [out of 12,007 stocks]

DescriptionValueGlobal RankIn Am Region
MCap (US$)4.9B2,8741,078
Total Assets (US$)22.8B1,561613
Revenue (US$)16.3B877385
Net Profit (US$)(1B)42,1339,894
Net Profit Margin %(6.0)30,6305,232
PV$1000 (1Year) US$*1,22916,7003,465
US$* Change (1Year) %24.315,7753,295

* 1 year ago CAD 1 = USD 0.76

Jan 19, 2018: CAD 1 equals USD 0.81

3.2 Independent Ratings

+ BSS/News Bites:

Bombardier Inc. is placed 820/2133 in BSS News Bites' ranking of Canadian performers in the past year, a percentile ranking of 61.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 396,628 shares worth $US932,781 or 0.01% by value of the ETF's portfolio [Ranked 2105 out of 7457 by value and 82 out of 205 for Canada].

SECTION 4 BOMBARDIER CLASS B FINANCIALS

Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)16.318.220.3
Pretax (USD)(807M)(5.2B)(740M)
Net (USD B)(1)(5.3)(1.3)
EPS (USD)(0.48)(2.58)(0.74)

Net profit improved from -US$5.3 billion in 2015 to -US$1 billion in 2016. Earnings Per Share (EPS) improved from -$US2.58 to -48.0c.

SECTION 5 BOMBARDIER CLASS B PROFILE

5.1 Activities

Bombardier Inc is a manufacturer of transportation equipment, including business and commercial aircraft and rail transport equipment and systems. It operates in two segments aerospace segment and transportation segment.

5.2 Industry & Sector

Classification LevelName of Sector
Industry GroupAerospace & Defense
IndustryAerospace & Defense
ActivityAerospace & Defense - NEC*
Economic SectorIndustrials
Business SectorIndustrial Goods

* NEC: Not elsewhere classified

5.3 Top Management

The chief executive officer is Alain Bellemare and the chief financial officer is John Di Bert.

5.4 Issued Capital

Based on 1,932,013,593 issued shares the market capitalisation is CAD6 billion (US$4.9 billion).

SECTION 6 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

January 15: Bombardier and Conair Announce Purchase Agreement for Six Q400 Aircraft for Conversion into Q400 Multirole Airtankers

MONTREAL, QUEBEC--(Marketwired - Jan. 15, 2018) - Bombardier Specialized Aircraft announced today that Conair Group Inc., the world's leading provider of fixed wing aerial firefighting aircraft, has purchased six Q400 aircraft. Based on the current list price, the firm order is valued at approximately $206 million US.

January 03: Bombardier to Provide 54 Additional TWINDEXX Vario Double-Deck Coaches to Israel Railways

BERLIN, GERMANY--(Marketwired - Jan. 3, 2018) -

Note to editors: To view the photos associated with this press release, please visit the following links:

BOMBARDIER TWINDEXX Vario for Israel Railways - Photo 1 & BOMBARDIER TWINDEXX Vario for Israel Railways - Photo 2

Rail technology leader Bombardier Transportation signed a contract on December 31 to provide 54 additional BOMBARDIER TWINDEXX Vario double-deck coaches to Israel Railways (ISR).

January 02: Bombardier to Supply 17 Additional Locomotives to New Jersey

BERLIN, GERMANY--(Marketwired - Jan. 2, 2018) -

Note to editors: To view the photo associated with this press release, please visit the following link: The BOMBARDIER ALP-45 Dual-Power Locomotive (Photo:Roman Porta)

Rail technology leader Bombardier Transportation announced today that New Jersey Transit Corporation (NJ TRANSIT) has exercised an option for 17 additional BOMBARDIER ALP-45 dual-power locomotives.

December 29 2017: Customer Orders up to Twelve Bombardier CRJ900 Aircraft

MONTREAL, QUEBEC--(Marketwired - Dec. 29, 2017) -

Notes to Editors: There is a photo associated with this press release.

Bombardier Commercial Aircraft announced today that a customer, who has requested to remain unidentified at this time, has signed an order to acquire six CRJ900 aircraft on firm order and options on six additional CRJ900 regional jets.

Based on list price, the firm orders would be valued at approximately $290 million US.

December 29 2017: EgyptAir Converts Letter of Intent to Firm Order for Bombardier C Series aircraft

MONTREAL, QUEBEC--(Marketwired - Dec. 29, 2017) -

Note to Editors: There is a photo associated with this press release.

Bombardier Commercial Aircraft and EgyptAir Holding Company announced today that the parties have executed a firm agreement for the sale and purchase of 12 CS300 aircraft along with purchase rights for an additional 12 CS300 aircraft.

EgyptAir's Letter of Intent (LOI) was previously announced on November 14 during the 2017 Dubai Air Show.

"As we look back at the C Series successful entry in service, we are thrilled that its many achievements are paving the way to further success.

Contact: (514) 861-9481

Physical Address: 800 boul Ren-Lvesque O, Montral, QC, CA, H3B 1Y8

State/Province/Country: Canada

Country of Incorporation: Canada

Industry [NAICS]: 336411

Exchange: Toronto Stock Exchange

ISIN: CA0977512007

T:BBD.B; TSE:BBD.B; N:BBD.B; CN:BBD.B; BBDb.TO

PermID: 4295860745

CIK: Bombardier Inc.

Bombardier Inc, Bombardier Inc Cl B Sv, Bombardier Inc Class B Subordinate Voting Shares

Source: www.BuySellSignals.com