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

NEWS BITES - NORTH AMERICA

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
TorontoBBD.BCAD0.4912,980,29898.60.8
FrankfurtBBDBEUR0.34232,7171.40.7
Total100.00

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

INDEX

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)

Glossary

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

Websitehttp://www.bombardier.com
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 0115.51.114.41.4

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

DescriptionValueRank
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

YearADVT
202013.0
201910.9
20187.1
20175.4
20169.6

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

DescriptionValueRank
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
BBD.B.TSX-76.4-38-27.9-18.9

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
BBD.B.TSXCAD409CAD236CAD235
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
20172,195,379,000
20162,212,547,000
20152,082,683,000
20141,741,733,000
20131,739,289,970
20121,730,767,249

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
20202.461.250.38
20195.583.071.58
20184.343.091.96
20172.762.111.56
20162.631.530.72

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
202012.5
201933.5
201822.2
201711.3
201614.7

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%].

Glossary

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.

Created by www.buysellsignals.com