Canadian stock report - Bombardier

CANA

Bombardier Class B accelerates rise, up 17.2% in 2 days October 17, 2017 17:00 EDT

NEWS BITES - NORTH AMERICA

Bombardier Inc. (TSX:BBD.B), Canada's 2nd largest Aerospace & defense company by market cap, has soared 40.0c (17.2%) over the past two trading days, compared with the S&P/TSX 60 Index which rose 1.6 points (0.2%) in the two days for a relative price increase of 17.0%. The 2-day rise was fuelled by a cumulative volume of 4.1 times the average 2-day volume of 8 million shares. The stock rose 1.3% on Monday and 15.7% on Tuesday to close at CAD2.73.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

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

SECTION 3 PRICE VOLUME DYNAMICS

Volatility, Moving Annual Return, Beta, Aggregate Volumes, Prices and Turnover Period

SECTION 4 RANKING

SECTION 5 FINANCIALS

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

Analyst Recommendation Past Fortnight, Corporate Wire

SECTION 1 BOMBARDIER CLASS B BULLISH SIGNALS

1.1 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 7% of stock by value of Q Ratio.

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

QtrRevenue GrowthNet Profit Margin
Jun 1714.4-7.2
Mar 17-18.4-0.9

1.2 Technicals:

Uptrend: The stock continues its significant uptrend. The stock rose 15.7%, for a 3-day rise of 17.7%, on high volatility today and expanding price range.

+ The price soared 21.3% in the last week and 13.8% in the last month.

+ Compared with the S&P/TSX 60 Index which rose 0.4% for the week and 4.8% for the month, this represented a relative price increase for Bombardier Class B stock of 20.9% for the week and 8.9% for the month.

+ The stock has seen a rally of 31% in less than 5 months.

+ The present value of CAD1,000 (PV1000) invested one year ago in Bombardier Class B is CAD1,569, for a capital gain of CAD569.

PV$10001-week1-month1-year
BBD.B.TSX1,2131,1381,569
S&P/TSX 60 Index1,0041,0261,096

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCAD161.9 million (US$128.8 million)In Top 4%
Price/MAP501.11In Top 6%
Price Change %15.7In Top 7%
Price to Sales0.3In Top Quartile
Price/MAP2001.15In Top Quartile
P/E * P/NTA2.9In Top Quartile
% Prem to Vol Wtd Price14.9In Top Quartile

SECTION 2 BOMBARDIER CLASS B BEARISH SIGNALS

2.1 Fundamentals:

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

+ 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

2.2 Technicals:

+ The present value of CAD1,000 (PV1000) invested five years ago in Bombardier Class B is CAD827, including a capital loss of CAD224 and dividend reinvested of CAD52.

+ 5 years Multiplier in CAD = 0.827x

+ Compound Annual Growth Rate (CAGR) in CAD = -3.7%

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 $US645, including a capital loss of $US395 and dividend reinvested of $US40.

+ 5 years ago CAD 1 equalled USD 1.0209

+ 5 years Multiplier in USD = 0.645x

+ Compound Annual Growth Rate (CAGR) in USD = -8.4%

Oct 17, 2017: CAD 1 equals USD 0.8

2.3 Overbought/Bearish/Resistance Signals:

+ At CAD2.73 the price has risen above the upper Bollinger band resistance of CAD2.56, indicating a downside risk for it to fall back within the band.

+ The Relative Strength Index (RSI) of 71.3 has penetrated the overbought line of 70, suggesting the price gain of 30% in the last 14 days is unusually high.

2.4 Low Performance Indicators:

DescriptionValueRank In Market
EBITDA Margin %0.1In Bottom 1%
Volatility %10.8In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Volatility:

+ Bombardier Class B is at a discount of 8.1% to its 12-month high of CAD2.97 on October 17. It is also at a premium of 58.7% to the 12-month low of CAD1.72 on November 09, 2016.

3.2 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 56.9%.

BBD.BClose (CAD)Dividends (CAD)Capital Gain / (Loss) %% YieldAnnual Return %
Oct 172.73-56.9-56.9
1 Yr ago1.74-8.1-8.1
2 Yrs ago1.610.03(54.2)0.9(53.3)
3 Yrs ago3.510.12(27.3)2.4(24.9)
4 Yrs ago4.830.1237.43.440.8

Close 5 years ago CAD3.52

3.3 Beta:

+ Beta: the Beta of Bombardier Class B stock is 0.4. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 Aggregate Volumes, Prices and Turnover Period:

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

+ Toronto: BBD.B.TSX 59,294,648 [VI of 7.4] volume 99.95% of aggregate. Price: CAD2.73.

+ Frankfurt: BBDB.FRA 29,840 [VI of 0.3] volume 0.05% of aggregate. Price: EUR1.59. Using the current exchange rate of EUR1 equals 1.479CAD, The shares are at a 14.0% discount to the close price on Toronto.

+ Aggregate volume: there were 59.3 million shares of Bombardier Class B worth CAD161.9 million traded today. The aggregate volume was 7.3 times average trading of 8.1 million shares.

The turnover rate in the 12 months to date was 71.3% (or a turnover period of 1 year 4 months). This average length of ownership of the stock at 0.7 times the average holding period of 1 year 11 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 47,797 stocks] and Rank in the American Region [out of 12,758 stocks]

DescriptionValueGlobal RankIn Am Region
MCap (US$)4.2B3,4571,271
Total Assets (US$)22.8B1,547616
Revenue (US$)16.3B865386
Net Profit (US$)(1B)42,12310,433
Net Profit Margin %(6.0)30,4315,433
PV$1000 (1Year) US$*1,6419,9522,529
US$* Change (1Year) %40.69,4832,373

* 1 year ago CAD 1 = USD 0.76

Oct 17, 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)

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 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 CAD5.3 billion (US$4.2 billion).

SECTION 7 STOCK BUZZ

7.1 Analyst Recommendation: Past Fortnight

DateBrokerageActionCurrent RatingPrice Target
Oct 12, 2017BMO Capital MarketsReiteratesOutperform3.3

7.2 Corporate Wire

To view Recent Company Headlines, click here

October 16: Events Calendar: Media Advisory: Bombardier to Hold a Press Conference and Conference Call

MONTREAL, QUEBEC--(Marketwired - Oct. 16, 2017) - Bombardier (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) and Airbus announced today that they are partnering on the C Series aircraft program. Bombardier will hold a press conference intended for media at 7:15 p.m. Eastern Time (ET) followed by a live webcast/conference call intended for investors and analysts at 8:15 p.m.

October 16: Airbus and Bombardier Announce C Series Partnership

AMSTERDAM, NETHERLANDS and MONTREAL, QUEBEC--(Marketwired - Oct. 16, 2017) - Airbus SE (EPA:AIR) and Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF)

Airbus to acquire majority stake in the C Series Aircraft Limited Partnership Partnership brings together two complementary product lines, with 100-150 seat market segment expected to represent more than 6,000 new aircraft over the next 20 years Combination of Airbus' global reach and scale with Bombardier's newest aircraft family to create significant value for customers, suppliers, employees and shareholders Significant C Series production costs savings anticipated by leveraging Airbus' supply chain expertise Commitment to Quebec: C Series Aircraft Limited Partnership headquarters and primary assembly to remain in Quebec, with the support of both companies' global supply chains Airbus' global industrial footprint expands with the C Series Final Assembly Line in Canada, resulting in a positive impact on operations in Quebec and across the country Growing market for C Series results in second Final Assembly Line in Mobile, Alabama, serving U.S.

October 08: Bombardier Unveils the Largest Purpose-Built Business Jet in the Industry at NBAA BACE 2017

Bombardier Business Aircraft unveiled The Architect, its fourth Global 7000 flight test vehicle (FTV4) at the National Business Aviation Association (NBAA) Conference and Exhibition in Las Vegas. FTV4 is the first Global 7000 aircraft to be showcased at a public event and is the first flight test vehicle equipped with a cabin interior.

October 07: Bombardier Receives a Second Environmental Product Declaration for its C Series Aircraft, Confirming its Unmatched Environmental Performance

MONTREAL, QUEBEC--(Marketwired - Oct. 3, 2017) - Bombardier Commercial Aircraft announced today at the Global Sustainable Aviation Summit in Geneva the publication of the Environmental Product Declaration (EPD(Registered)) for the CS300 aircraft. The news was made public one year after the CS100 aircraft received the same certification.

September 30: Bombardier Signs Largest Ever Q400 Turboprop Order with SpiceJet for up to 50 Aircraft

TORONTO, ONTARIO--(Marketwired - Sept. 29, 2017) - Bombardier Commercial Aircraft today announced that it has concluded a firm purchase agreement with SpiceJet Limited ("SpiceJet") of Gurgaon, India for up to 50 Q400 turboprop airliners, making it the largest single order ever for the Q400 turboprop aircraft program and bringing total Q400 firm orders to over 600 Q400 aircraft.

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