Canadian stock report - Bombardier
Bombardier Class B adds CAD126.2 million in MCap, top heavyweight rise in Aerospace & defense sector August 17, 2018 17:00 EDT
NEWS BITES - NORTH AMERICA
Bombardier Inc. (TSX:BBD.B), Canada's largest Aerospace & defense company by market cap, has increased 6.0c (1.3%) from its last trading session of August 16 to close at CAD4.64. Compared with the S&P/TSX 60 Index which rose 6.3 points (0.7%) in the day, the relative price increase was 0.7%. The volume was 0.4 times the average daily trading volume of 9.7 million shares. It posted the highest rise in MCap with the most influence on the Aerospace & defense sector. Its MCap is CAD9.8 billion (US$7.4 billion).
Highlights in today's Report:
SECTION 1 BULLISH SIGNALS
SECTION 2 BEARISH SIGNALS
SECTION 3 PRICE VOLUME DYNAMICS
SECTION 4 RELATED NEWS
SECTION 5 GLOBAL RANKING
SECTION 6 SUMMARY FINANCIALS
SECTION 7 PROFILE
SECTION 1 BOMBARDIER CLASS B BULLISH SIGNALS
+ In the last three months the stock has hit a new 52-week high ten times, pointing to a significant uptrend.
+ The present value of CAD1,000 (PV1000) invested one year ago in Bombardier Class B is CAD1,764, for a capital gain of CAD764.
|S&P/TSX 60 Index||1,003||996||1,099|
High Performance Indicators and rank of Bombardier Class B in the Canadian market:
|Description||BBD.B Value||Rank In Market|
|Cash to MCap %||50.0||In Top 1%|
|Today's Trading Turnover||CAD18.9 million (US$14.4 million)||In Top 3%|
|Price/MAP200||1.18||In Top Quartile|
|Price Change %||1.3||In Top Quartile|
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.
+ Bombardier Class B is cash rich with Cash to Market Capitalisation at 50.0%.
SECTION 2 BOMBARDIER CLASS B BEARISH SIGNALS
+ Total Liabilities/EBITDA of 2,192.9 which compares unfavourably with the Joseph Piotroski benchmark of 5.
SECTION 3 BOMBARDIER CLASS B PRICE VOLUME DYNAMICS
+ Bombardier Class B is at a discount of 16.9% to its 12-month high of CAD5.58 on July 11. It is also at a premium of 136.7% to the 12-month low of CAD1.96 on September 27, 2017.
+ The present value of CAD1,000 (PV1000) invested five years ago in Bombardier Class B is CAD1,030, including a capital loss of CAD12 and dividend reinvested of CAD42.
+ 5 years Multiplier in CAD = 1.03x
+ Compound Annual Growth Rate (CAGR) in CAD = 0.6%
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 $US810, including a capital loss of $US223 and dividend reinvested of $US33.
+ 5 years ago CAD 1 equalled USD 0.9674
+ 5 years Multiplier in USD = 0.81x
+ Compound Annual Growth Rate (CAGR) in USD = -4.1%
Aug 17, 2018: CAD 1 equals USD 0.76
3.2 Aggregate Volumes and Prices:
[Volume Index or VI in brackets; 1 is average]
+ Toronto: BBD.B.TSX 4,081,458 [VI of 0.4] volume 99.74% of aggregate. Price: CAD4.64.
+ Frankfurt: BBDB.FRA 10,690 [VI of 0.1] volume 0.26% of aggregate. Price: EUR3.11. Using the current exchange rate of EUR1 equals 1.4967CAD, The shares are at a 0.3% premium to the close price on Toronto.
+ Aggregate volume: there were 4.1 million shares of Bombardier Class B worth CAD19 million traded today. The aggregate volume was 0.4 times average trading of 9.8 million shares.
The turnover rate in the 12 months to date was 69.6% (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 37 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.
3.3 Moving Annual Return (Past 5 years)
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 76.4%.
|BBD.B||Close (CAD)||Dividends (CAD)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||2.63||-||34.2||-||34.2|
|2 Yrs ago||1.96||-||45.2||-||45.2|
|3 Yrs ago||1.35||0.06||(64.1)||1.6||(62.5)|
|4 Yrs ago||3.76||0.12||(19.9)||2.4||(17.5)|
Close 5 years ago CAD4.70
+ Beta: the Beta of Bombardier Class B stock is 1.2. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
3.5 The Past Year
+ Bombardier Inc. (TSX:BBD.B), surged CAD2.01 (or 76.4%) in the past year to close at CAD4.64 today. Compared with the S&P/TSX 60 Index which has risen 9.6% over the same period, this is a relative price increase of 66.9%. A three-bagger, the value of CAD1,000 invested three years ago is CAD3,437 [vs CAD1,159 for the S&P/TSX 60 Index], for a capital gain of CAD2,437. The average annualised return to shareholders [TSR or Total Shareholder Return] has been 50.3% in the past three years.
SECTION 4 BOMBARDIER CLASS B RELATED NEWS
4.1 Corporate Wires
Bombardier Class B (BBD.B) issued 2 new Releases this week.
August 15: Bombardier Establishes Automatic Securities Disposition Plan
Not for distribution to U.S. news wire services or public dissemination in the United States
Plan permits sales of vested shares earned by certain senior executives in accordance with predetermined instructionsPlan reinforces the incentive effect of performance-based compensation by allowing for the sale of shares on the open market over a period of up to two years at prevailing market prices, regardless of any subsequent material non-public information participants may receivePlan participants must satisfy Bombardier's minimum stock ownership guidelines for senior executives MONTREAL, Aug.
To view the previous 3 months' Releases in full, click here
4.2 Other News
+ BSS/News Bites:
Bombardier Inc. is placed 152/2048 in BSS News Bites' ranking of Canadian performers in the past year, a percentile ranking of 93.
+ Vanguard Total World Stock ETF 2588:
The stock was one of 2588 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 644,801 shares in the period May 31, 2018 to Jun 30, 2018 worth $US-3,210,271 at an estimated Volume Weighted Average Price (VWAP) of $US4.9787. As at Jun 30, 2018, the Vanguard Total World Stock ETF held 0 shares worth $US0 or 644,801% by value of the ETF's portfolio [Ranked 2246 out of 2588 by value and 94 out of 103 for Canada].
SECTION 5 BOMBARDIER CLASS B GLOBAL RANKING
Global Rank [out of 47,646 stocks] and Rank of Bombardier Class B in the American Region [out of 11,859 stocks]
|Description||Value||Global Rank||In Am Region|
|Total Assets (US$)||22.8B||1,575||635|
|Net Profit (US$)||(1B)||42,648||9,844|
|Net Profit Margin %||(6.0)||31,263||5,276|
|PV1000 (1Year) USD*||1,711||2,817||966|
|US$* Change (1Year) %||69.8||2,654||939|
* 1 year ago CAD 1 = USD 0.79
Aug 17, 2018: CAD 1 equals USD 0.76
SECTION 6 BOMBARDIER CLASS B SUMMARY FINANCIALS
Financials Summary (Past 3 years)
|Year ended||Dec 2016||Dec 2015||Dec 2014|
|Sales (USD B)||16.3||18.2||20.3|
|Net (USD B)||(1)||(5.3)||(1.3)|
+ 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 7 BOMBARDIER CLASS B PROFILE
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.
7.2 Issued Capital
Based on 2,103,698,147 issued shares the market capitalisation is CAD9.8 billion (US$7.4 billion).
Contact: (514) 861-9481
Physical Address: 800 boul Ren-Lvesque O, Montral, QC, CA, H3B 1Y8
Country of Incorporation: Canada
Industry [NAICS]: 336411
Exchange: Toronto Stock Exchange
Economic Sector: Industrials
Business Sector: Industrial Goods
Industry Group: Aerospace & Defense
Industry: Aerospace & Defense
Activity: Aerospace & Defense - NEC*
* NEC: Not elsewhere classified
T:BBD.B; TSE:BBD.B; N:BBD.B; CN:BBD.B; BBDb.TO
CIK: Bombardier Inc.
Bombardier Inc, Bombardier Inc Cl B Sv, Bombardier Inc Class B Subordinate Voting Shares