Canadian stock report - Bombardier

CANA

Bombardier Class B keeps rising, up 9.9% in 5 days April 20, 2018 17:00 EDT

NEWS BITES - NORTH AMERICA

Bombardier Inc. (TSX:BBD.B), Canada's largest Aerospace & defense company by market cap, extended its gains on Friday, rising an additional 6.0c (1.5%) to close at CAD4.0. The shares have jumped 36.0c (9.9%) over the past five trading days, compared with the S&P/TSX 60 Index which rose 11.7 points (1.3%) in the five days for a relative price increase of 8.6%. Cumulative volume in the 5 days was 0.7 times the average 5-day volume of 9 million shares.

THE PAST TWO YEARS

Bombardier Class B accelerates rise, up 130% in 2 years

Bombardier Inc. (TSX:BBD.B), has strengthened CAD2.26 (129.9%) over the past two years, compared with the S&P/TSX 60 Index which rose 96.4 points (11.8%) in the two years for a relative price increase of 118.1%. The shares rose 53.0c (30.5%) a year ago and CAD1.73 (76.2%) in the past year to close at CAD4.0.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Technicals, Low Performance Indicator, Moving Annual Return, Aggregate Volumes, Prices and Turnover Period

SECTION 3 RANKING

Global, Independent Ratings

SECTION 4 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

SECTION 5 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 6 STOCK BUZZ

SECTION 1 BOMBARDIER CLASS B BULLISH SIGNALS

1.1 Fundamentals:

+ 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.

+ The company is cash rich with Cash to Market Capitalisation at 51.7%.

1.2 Technicals:

Uptrend: The stock continues its significant uptrend.

+ The price jumped 9.9% in the last week and 7.2% in the last month.

+ The 3.9% discount to 12-month high of CAD4.16 against the 104.1% premium to 12-month low of CAD1.96 suggests the stock continues to push for new highs.

+ The stock has seen a rally of 40% in less than 6 months.

+ The present value of CAD1,000 (PV1000) invested one year ago in Bombardier Class B is CAD1,762, for a capital gain of CAD762.

PV$10001-week1-month1-year
BBD.B.TSX1,0991,0721,762
S&P/TSX 60 Index1,0131,003990

+ The present value of CAD1,000 (PV1000) invested five years ago in Bombardier Class B is CAD1,126, including a capital gain of CAD73 and dividend reinvested of CAD53.

+ 5 years Multiplier in CAD = 1.126x

+ Compound Annual Growth Rate (CAGR) in CAD = 2.4%

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 $US911, including a capital loss of $US132 and dividend reinvested of $US43.

+ 5 years ago CAD 1 equalled USD 0.9753

+ 5 years Multiplier in USD = 0.911x

+ Compound Annual Growth Rate (CAGR) in USD = -1.8%

Apr 20, 2018: CAD 1 equals USD 0.79

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCAD21.9 million (US$17.3 million)In Top 4%
Price/MAP2001.32In Top 6%
Price/MAP501.06In Top 9%
P/E * P/NTA3.88In Top Quartile
Price to Sales0.4In Top Quartile
Price Change %1.5In 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:

Overbought/Bearish/Resistance Signals:

+ At CAD4.0 the price has risen above the upper Bollinger band resistance of CAD3.96, indicating a downside risk for it to fall back within the band.

+ The Relative Strength Index (RSI) of 71.2 has penetrated the overbought line of 70, suggesting the price gain of 8.7% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -6.2, suggesting the price is close to its 14-day high of CAD4.03.

2.3 Low Performance Indicator:

DescriptionValueRank In Market
EBITDA Margin %0.1In Bottom 1%

2.4 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 76.2%.

BBD.BClose (CAD)Dividends (CAD)Capital Gain / (Loss) %% YieldAnnual Return %
Apr 204-76.2-76.2
1 Yr ago2.27-37.6-37.6
2 Yrs ago1.65-(38.2)-(38.2)
3 Yrs ago2.670.09(31.8)2.3(29.5)
4 Yrs ago3.920.1253.18.1

Close 5 years ago CAD3.73

2.5 Aggregate Volumes, Prices and Turnover Period:

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

+ Toronto: BBD.B.TSX 5,464,374 [VI of 0.6] volume 99.62% of aggregate. Price: CAD4.0.

+ Frankfurt: BBDB.FRA 20,610 [VI of 0.2] volume 0.38% of aggregate. Price: EUR2.49. Using the current exchange rate of EUR1 equals 1.5634CAD, The shares are at a 2.7% discount to the close price on Toronto.

+ Aggregate volume: there were 5.5 million shares of Bombardier Class B worth CAD21.9 million traded today. The aggregate volume was 0.6 times average trading of 9.1 million shares.

The turnover rate in the 12 months to date was 57.4% (or a turnover period of 1 year 8 months). This average length of ownership of the stock at 0.9 times the average holding period of 1 year 11 months for stocks in the S&P/TSX 60 Index suggests a 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 47,667 stocks] and Rank in the American Region [out of 11,949 stocks]

DescriptionValueGlobal RankIn Am Region
MCap (US$)7.2B2,054789
Total Assets (US$)22.8B1,601641
Revenue (US$)16.3B902394
Net Profit (US$)(1B)42,1039,882
Net Profit Margin %(6.0)30,7755,288
PV$1000 (1Year) US$*1,8623,473848
US$* Change (1Year) %83.03,366813

* 1 year ago CAD 1 = USD 0.74

Apr 20, 2018: CAD 1 equals USD 0.79

3.2 Independent Ratings

+ BSS/News Bites:

Bombardier Inc. is placed 173/2004 in BSS News Bites' ranking of Canadian performers in the past year, a percentile ranking of 91.

+ Vanguard Total World Stock ETF 7517:

The stock was one of 7517 global stocks selected by Vanguard Total World Stock ETF (VT). As at Jan 31, 2018, the Vanguard Total World Stock ETF held 396,628 shares worth $US1,034,190 or 0.01% by value of the ETF's portfolio [Ranked 2109 out of 7517 by value and 82 out of 204 for Canada].

SECTION 4 BOMBARDIER CLASS B FINANCIALS

4.1 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.

4.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Current ratio up 11.8% from 1.0 to 1.1.

+ Total non-current assets to Total Assets up from 47.1% to 50.5%.

+ Cash to Total Assets up from 11.9% to 14.8%.

Unfavourable Changes:

+ Loss of $US1.0b.

+ Sales revenue down 10.1% from $US18.2b to $US16.3b.

+ EBIT Margin of -0.4%.

+ Total revenue to total assets down from 0.8 to 0.7.

+ Sales and marketing expenses to Sales up from 6.7% to 6.9%.

+ Interest expenses to Sales up from 2.3% to 5%.

+ Total current assets to Total Assets down from 52.9% to 49.5%.

+ Total Liabilities to EBITDA of 2,192.9 compares unfavourably with the Joseph Piotroski benchmark of <5

+ Total Liabilities to Operating Cash Flow of 192.1 compares unfavourably with the Joseph Piotroski benchmark of <4. However, it has improved by 85.7% from the previous year's ratio of 1347.8.

+ Net tangible assets per share deterioration 15.4% from $US-4.81 to $US-5.55.

Note:

+ Cost of Goods Sold to Sales up from 89.1% to 89.5%.

+ Tax expenses to Sales up from 0.8% to 1.1%.

+ Intangibles to Total Assets up from 26% to 30.8%.

+ Current Inventory to Total Assets down from 30.5% to 25.6%.

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
Economic SectorIndustrials
Business SectorIndustrial Goods
Industry GroupAerospace & Defense
IndustryAerospace & Defense
ActivityAerospace & Defense - NEC*

* NEC: Not elsewhere classified

5.3 Top Management

The chief executive officer is Alain Bellemare.

5.4 Issued Capital

Based on 2,268,986,061 issued shares the market capitalisation is CAD9.1 billion (US$7.2 billion).

SECTION 6 STOCK BUZZ

Corporate Wire

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April 18: Bombardier Signs Long-Term Maintenance Contract for Melbourne's First High-Capacity Signalling System

BERLIN, GERMANY--(Marketwired - April 18, 2018) -

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

Bombardier's full-package OPTIFLO rail control services solution will help keep trains moving in Melbourne

Bombardier will provide its rail control maintenance services for the Metro Tunnel Project under construction in Melbourne

Rail technology leader Bombardier Transportation announced today that it has signed a contract with Metro Trains Melbourne (MTM) to provide ten years of maintenance services for its rail control solution being delivered for Melbourne's new Metro Tunnel Project.

April 15: Bombardier Announces Extended Range of 7,700 Nautical Miles for Global 7000 Aircraft, Unlocking New Possibilities in Business Travel

MONTREAL, QUEBEC--(Marketwired - April 15, 2018) -

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

Bombardier is proud to reveal that its marquee Global 7000 business jet, having completed multiple long-range flights around the world, now boasts an outstanding range of 7,700 nautical miles, connecting more city pairs than any other business aircraft.

"We are thrilled to offer this extended range to our loyal customers, who are the driving force behind our engineering feats and who will soon own an aircraft that simply has no peer," said David Coleal, President, Bombardier Business Aircraft.

April 07: Bombardier Wins Contract to Provide 40 High Speed Regional Trains to Vasttrafik in Sweden

A Swedish version of this press release is available at http://media3.marketwire.com/docs/20180406_Sweden_SE.pdf

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

April 05: Bombardier and PSA Airlines Extend Heavy Maintenance Agreement for the Airline's Fleet of CRJ Series Aircraft

MONTREAL, QUEBEC--(Marketwired - April 5, 2018) -

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

Bombardier Commercial Aircraft announced today that Bombardier Services Corporation and PSA Airlines, Inc. (PSA Airlines) of Vandalia, Ohio recently signed a three-year extension to the parties' heavy maintenance agreement.

March 27: Bombardier to Provide Five Additional AVENTRA Trains for Elizabeth Line

BERLIN, GERMANY--(Marketwired - March 27, 2018) -

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

The BOMBARDIER AVENTRA Trains for London's Elizabeth Line

The BOMBARDIER AVENTRA Trains for London's Elizabeth Line (2)

Rail technology leader Bombardier Transportation has received an order from Transport for London (TfL) for five additional BOMBARDIER AVENTRA trains for services on London's Elizabeth line increasing the total order to 70 trains.

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

RIC: BBDb.TO

CIK: Bombardier Inc.

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

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