Bombardier Class B (BBD.B:49.50c) adds CAD21 million (US$15 million) in MCap, top heavyweight rise in Aerospace & defense sector 22 May 2020


Dateline: Friday May 22, 2020

Bombardier Inc. (TSX:BBD.B), Canada's 2nd largest Aerospace & defense company by market cap, has lifted 1.0c (2.1%) from its previous trading session to close at 49.50c. Compared with the S&P/TSX 60 Index which rose 2.1 points (0.2%) in the day, the relative price increase was 1.8%. The volume was 0.8 times the average daily trading volume of 13 million shares. It posted the highest rise in MCap (CAD21.3 million (US$15.2 million)) with the most influence on the Aerospace & defense sector. There were 10,937,988 shares worth CAD5.4 million (US$3.9 million) traded today.

Stock Summary

Currency1 CAD = 0.71 USD SectorAerospace & Defense
May 22 close49.50cShares Outstanding2,126,514,345
Ave Daily Volume12,980,795 sharesMarket CapCAD1.1 billion [USD751.2 million]
52-Week Range0.38 - 2.46

Primary Exchange and Other Listings: Trading Currency and Volume

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI

1 CAD [Canadian Dollar]= 1.5303 EUR

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Financials Summary: EPS improved to -25.0c in FY2017

+ Net Loss improved from USD1 billion in FY2016 to USD516 million in FY2017.

+ Earnings Per Share (EPS) improved from -48.0c in FY2016 to -25.0c in FY2017.

Year ended DecFY2017FY2016FY2015
Sales (USD B)16.216.318.2
Pretax (USD)(476M)(807M)(5.2B)
Net (USD)(516M)(1B)(5.3B)
EPS (USD)(0.25)(0.48)(2.58)

Click here to export Financials table in xls


SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

Click here to view the following

SECTION 7 Financials FY 2017

SECTION 8 Peer Group Analysis & Ranking

SECTION 9 News Archives (Mar 2019 - Aug 2019)


SECTION 1 News In The Past Quarter

1.1 Analyst Recommendations: Past Month

DateBrokerageCurrent RatingPrev TargetPrice Target
May 14, 2020Raymond JamesMarket Perform1.51
May 13, 2020Raymond JamesMarket Perform1.51
May 12, 2020Raymond JamesMarket Perform1.51
May 12, 2020TD SecuritiesHold0.60.45
May 12, 2020Scotiabank-0.650.35

SECTION 2 Corporate Profile

2.1 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.

2.2 Contact Details

Physical Address800 boul Ren-Lvesque O, Montral, QC, CA, H3B 1Y8
Phone(514) 861-9481
Fax(514) 861-7769

2.3 Industry & Sector

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

* NEC: Not elsewhere classified

2.4 North American Industry Classification System [NAICS]

Code: 336411

Industry Title: Aircraft Manufacturing

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 20.7% Past Week

It outperformed the S&P/TSX 60 index in 3 out of 5 days. The price ranged between a low of 0.41 on Friday, May 15 and a high of 0.5 on Wednesday, May 20.

DayBombardier Class BClose price [CAD]Price change %Relative change %Comment
ThursdayDrops 3.0% on average volume0.48-3.0-2.1Price/MAP50 below 1 and falling
WednesdayIn top 2% performers of S&P/TSX 60 Index0.58.77.9VI*=1.3
TuesdayIn top 3% performers of S&P/TSX 60 Index0.4612.210.8Top Rise; VI*=1.4
FridayIn bottom 1% performers of S&P/TSX 60 Index0.41-4.7-5.3Week-low of 0.41 Steepest Fall
ThursdayAdds CAD11 million (US$8 million) in MCap, top heavyweight rise in Aerospace & defense sector0.431.21.3Price rise on rising relative strength

[Volume Index (VI); 1 is average]

3.2 Momentum Up 17.9% Past Month

The past month witnessed the best 2 weeks in the past quarter. In the past quarter the week beginning Monday May 18 saw the highest weekly rise of 20.7% for a relative price increase of 19.2%.

The Best 2 weeks in the past quarter:

Mon-FriChange %S&P/TSX 60 index Change %RPC %Vol Ind [1 is avg]
May 18-2220.71.519.21.1
Apr 27-May 0115.

3.3 Uptrend

Past Month:

- Rises to Falls: In the past month the number of rises outnumbered falls 13:8 or 1.6:1.

3.4 Undervaluation

MCap/Total Assets:

- The company is cash rich with Cash to Market Capitalisation at 55.0%.

3.5 Other Bullish Signals

- Return on Capital Employed of 2.1% versus sector average of 0.5%.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 12% by Size in the Canadian market

Ave daily TurnoverCAD5.4 million (US$3.9 million)In Top 3%
MCapUSD751.2 millionIn Top 12%

4.2 Increased Volume, up 35% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 34.8% to 13 million shares.

Avg. Daily Volume Traded 12 months ended May 22, million shares


4.3 Satisfies two criteria of Benjamin Graham

- "A stock price down to two-thirds of "net current asset value" or "net quick liquidation value"; the price is 0.1 times net current asset value of $US2.5 per share.

-"Total debt equal or less than twice the net quick liquidation value"; total debt of USD9.5 billion is 1.7 times the net liquidation value of USD5.57 billion.

SECTION 5 Today's Bearish Signals

5.1 Rank in the bottom 6% by Price Performance in the Canadian market

Price/MAP2000.36In Bottom 6%

5.2 Downtrend

Price/Moving Average Price of 0.36 and negative MACD:

- The Price/MAP 200 of 0.36 for Bombardier Class B is lower than the Price/MAP 200 for the S&P/TSX 60 Index of 0.58.

- The price to 200-day MAP ratio is 0.36, a bearish indicator. In the past 200 days this ratio has been under 0.36, 40 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of 53.41c is lower than the 200-day MAP of CAD1.39, a bearish indicator. The 200-day MAP has decreased to CAD1.39. A decrease is another bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 0.46 minus the 26-day EMA of 0.48 is negative, suggesting a bearish signal.

- The price to 50-day EMAP ratio is 0.8, a bearish indicator. In the past 200 days this ratio has been under 0.8 49 times suggesting further downside. The 50-day EMAP has decreased to 58.01c. A decrease is another bearish indicator.

SECTION 6 Ongoing Bearish Parameters

6.1 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < -18.8%

TSR %1 yr3 yrs5 yrs10 yrs

6.2 Present Value of CAD1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Worst Periods with PVCAD1000 < 410

PVCAD1,0003 mo ago1 yr ago3 yrs ago
Aerospace & Defense sectorCAD465CAD592CAD592
S&P/TSX 60 IndexCAD856CAD920CAD989

6.3 The Worst Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % < -59

3-Year price change of -76.5% for Bombardier Class B underperformed the change of -1.1% in the S&P/TSX 60 index for a relative price change of -75.4%.

Price Change %QuarterYear3 Years
Bombardier Class B-59.1-76.4-76.5
Aerospace & Defense sector-53.5-56.2-40.8
S&P/TSX 60 index-15.3-8.5-1.1

6.4 Moving Annual Return of -76.4% in the past year:

Moving Annual Return was -76.4% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged -8.2%. The Moving Annual Return has been negative in 3 out of 5 years.

BBD.BClose (CAD)Annual Return %
May 220.49(76.4)
1 Yr ago2.1(50.7)
2 Yrs ago4.26101.9
3 Yrs ago2.115.0
4 Yrs ago2.01(20.9)

Close 5 years ago CAD2.54

6.5 Total Shares on Issue: 5-Year Increase of 26.8%

In the past 5 years total shares on issue have increased by 464.6 million (26.8%) from 1.7 billion to 2.2 billion. Buybacks have averaged 2.9 million shares [0.2%] per financial year. Based on a dynamic start date of 5 years ago, there has been only 1 decline in issued capital over the last 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue

6.6 Declining VWAP, down 18% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has decreased by 18.3% to CAD1.25. .

Past five years, 12 months ended May 22 (CAD)

YearHigh PriceVWAPLow Price

6.7 Declining share turnover, down 15% in 5 years

In the past five years, average daily share turnover has decreased 15.0% to CAD12.5 million (US$8.9 million). This suggests decreased liquidity.

Past five years, 12 months ended May 22 (CAD million)

YearAverage Daily Turnover

6.8 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Reduction in total shares on issue.

- Improvement in gross margin [from 10.5% to 12%].


ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabiliites (times)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

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