Canadian stock report - Bombardier

CANA

Bombardier Class B decreases 1.7% July 21, 2017 17:00 EDT

NEWS BITES - NORTH AMERICA

Bombardier Inc. (TSX:BBD.B), Canada's 2nd largest Aerospace & defense company by market cap, has decreased 4.0c (1.7%) from its last trading session of July 20 to close at CAD2.35. Compared with the S&P/TSX 60 Index which fell 4.9 points (0.6%) in the day, the relative price change was -1.1%. The volume was 0.9 times the average daily trading volume of 7.5 million shares.

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
Mar 17-18.4-0.9
Dec 1617.2-5.9

+ 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:

Downtrend: The stock dropped 1.7% on high volatility today.

+ The present value of CAD1,000 (PV1000) invested five years ago in Bombardier Class B is CAD694, including a capital loss of CAD354 and dividend reinvested of CAD48.

+ 5 years Multiplier in CAD = 0.694x

+ Compound Annual Growth Rate (CAGR) in CAD = -7.0%

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 $US560, including a capital loss of $US479 and dividend reinvested of $US39.

+ 5 years ago CAD 1 equalled USD 0.9876

+ 5 years Multiplier in USD = 0.56x

+ Compound Annual Growth Rate (CAGR) in USD = -10.9%

Jul 21, 2017: CAD 1 equals USD 0.8

1.3 Low Performance Indicators:

DescriptionValueRank In Market
Price Change %-1.7In Bottom Quartile
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 5% of stock by value of Q Ratio.

2.2 Technicals:

+ The present value of CAD1,000 (PV1000) invested one year ago in Bombardier Class B is CAD1,181, for a capital gain of CAD181.

PV$10001-week1-month1-year
BBD.B.TSX9929481,181
S&P/TSX 60 Index1,0011,0041,056

2.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCAD15.1 million (US$12 million)In Top 4%
Price to Sales0.2In Top 9%
P/E * P/NTA2.06In Top 9%
Price/MAP2001.06In Top Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Volatility:

+ Bombardier Class B is at a discount of 14.9% to its 12-month high of CAD2.76 on January 17. It is also at a premium of 50.6% to the 12-month low of CAD1.56 on September 26, 2016.

3.2 Beta & Alpha:

+ Beta: the Beta of Bombardier Class B stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

+ Alpha: the Alpha of the stock is 10.0. The actual return of 14.49% exceeded the expected return of 4.5%, reflecting outperformance.

3.3 Aggregate Volumes, Prices and Turnover Period:

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

+ Toronto: BBD.B.TSX 6,408,264 [VI of 0.9] volume 99.91% of aggregate. Price: CAD2.35.

+ Frankfurt: BBDB.FRA 6,050 [VI of 0.1] volume 0.09% of aggregate. Price: EUR1.59. Using the current exchange rate of EUR1 equals 1.4598CAD, The shares are at a 0.9% discount to the close price on Toronto.

+ Aggregate volume: there were 6.4 million shares of Bombardier Class B worth CAD15.1 million traded today. The aggregate volume was 0.8 times average trading of 7.6 million shares.

The turnover rate in the 12 months to date was 75.8% (or a turnover period of 1 year 3 months). This average length of ownership of the stock at 0.7 times the average holding period of 1 year 10 months 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 4

RANKING

Global Rank [out of 47,513 stocks] and Rank in the American Region [out of 12,828 stocks]

DescriptionValueGlobal RankIn Am Region
MCap (US$)3.6B3,2941,247
Total Assets (US$)22.8B1,490607
Revenue (US$)16.3B834376
Net Profit (US$)(1B)41,81010,477
Net Profit Margin %(6.0)29,9355,408
PV$1000 (1Year) US$*1,22714,9913,711
US$* Change (1Year) %15.317,0414,250

* 1 year ago CAD 1 = USD 0.77

Jul 21, 2017: CAD 1 equals USD 0.8

SECTION 5

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)

SECTION 6

BOMBARDIER CLASS B PROFILE

6.1 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.

6.2 Industry & Sector

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

* NEC: Not elsewhere classified

6.3 Top Management

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

6.4 Issued Capital

Based on 1,932,013,593 issued shares the market capitalisation is CAD4.5 billion (US$3.6 billion).

SECTION 7

REPORTED BUYING AND SELLING

Insider Buying

March 01: Bombardier Class B insider buys

Bombardier Class B (TSX:BBD.B) insider Brennan, Daniel bought 40,000 shares worth CAD94,000 on February 28. The purchase price was CAD2.35. The shares hit a two-month low on the day.

March 01: Bombardier Class B insider buys

Bombardier Class B (TSX:BBD.B) insider Brennan, Daniel bought 40,000 shares worth CAD93,600 on March 01. The purchase price was CAD2.34. The shares hit a two-month low on the day.

February 27: Bombardier Class B insider buys

Bombardier Class B (TSX:BBD.B) insider Brennan, Daniel bought 50,000 shares worth CAD125,000 on February 24. The purchase price was CAD2.50. The shares hit a two-month low on the day.

February 27: Bombardier Class B insider buys

Bombardier Class B (TSX:BBD.B) insider Brennan, Daniel bought 10,000 shares worth CAD23,700 on February 27. The purchase price was CAD2.37. The shares hit a two-month low on the day.

SECTION 8

STOCK BUZZ

8.1 Analyst Recommendation: Past Fortnight

DateBrokerageActionCurrent RatingPrice Target
Jul 13, 2017BMO Capital MarketsReiteratesOutperform2.75

8.2 Corporate Wire

To view Recent Company Headlines, click here

May 04: Bombardier to Report its First Quarter 2017 Financial Results and to Hold its Annual Meeting of Shareholders on Thursday, May 11

April 28: Jambojet Selects Q400 for Fleet Renewal and Expansion

April 26: Transport Canada and EASA Award Steep Approach Certifications to Bombardier CS100 Aircraft

April 21: Bombardier Appoints Jeff Hutchinson as Chief Information Officer

April 19: Bombardier Comments on Court's Favourable Decision

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