Bombardier Class B (BBD.B:47.0c) adds CAD11 million (US$8 million) in MCap, top heavyweight rise in Aerospace & defense sector 22 June 2020

NEWS BITES - NORTH AMERICA

Dateline: Monday June 22, 2020

Bombardier Inc. (TSX:BBD.B), Canada's 2nd largest Aerospace & defense company by market cap, has increased 0.50c (1.1%) from its previous trading session to close at 47.0c. Compared with the S&P/TSX 60 Index which rose 1.9 points (0.2%) in the day, the relative price increase was 0.9%. The volume was 0.7 times the average daily trading volume of 14.8 million shares. It posted the highest rise in MCap (CAD10.6 million (US$7.8 million)) with the most influence on the Aerospace & defense sector. There were 10,653,741 shares worth CAD5 million (US$3.7 million) traded today. Today the stock traded between its three-day high of 47.0c and 19-day low of 45.50c.

Stock Summary

Currency1 CAD = 0.74 USD SectorAerospace & Defense
Jun 22 close47.0cShares Outstanding2,126,514,345
Ave Daily Volume14,759,417 sharesMarket CapCAD999.5 million [USD735.5 million]
52-Week Range0.38 - 2.34

Primary Exchange and Other Listings: Trading Currency and Volume

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
TorontoBBD.BCAD0.4714,758,91198.90.7
FrankfurtBBDBEUR0.31271,2301.10.4
Total100.00

1 CAD [Canadian Dollar]= 1.5221 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

DateBrokeragePast RatingCurrent RatingPrev TargetPrice Target
Jun 10, 2020ScotiabankUnderperformSector Perform0.350.5
Jun 09, 2020ScotiabankUnderperformSector Perform0.350.5

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

* 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 Undervaluation

MCap/Total Assets:

- The company is cash rich with Cash to Market Capitalisation at 56.5%.

3.2 Other Bullish Signals

- Return on Capital Employed of 2.1% versus sector average of 0.3%.

3.3 Oversold/Bullish Signals:

- The stock is oversold according to the Williams % R indicator of -91.7, suggesting the price is close to its 14-day low of 45.0c.

SECTION 4 Ongoing Bullish Parameters

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

DescriptionValueRank
Ave daily TurnoverCAD5 million (US$3.7 million)In Top 3%
MCapUSD735.5 millionIn Top 12%

4.2 Increased Volume, up 56% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 56.4% to 14.8 million shares.

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

YearADVT
202014.8
201910.8
20187.1
20175.7
20169.4

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 Momentum Down 10.6% Past Week

It underperformed the S&P/TSX 60 index in 3 out of 5 days. The price ranged between a low of 0.46 on Monday, Jun 15 and a high of 0.51 on Wednesday, Jun 17.

DayBombardier Class BClose price [CAD]Price change %Relative change %Comment
FridayIn bottom 1% performers of S&P/TSX 60 Index0.47-5.1-4.9VI*=9.9
ThursdayIn bottom 1% performers of S&P/TSX 60 Index0.49-3.9-4.4Price/MAP50 below 1 and falling
WednesdayIn top 1% performers of S&P/TSX 60 Index0.513.03.3VI*=1.3
TuesdayIn top 2% performers of S&P/TSX 60 Index0.497.66.5Top Rise; VI*=1.5
MondayIn bottom 1% performers of S&P/TSX 60 Index in past week0.46-11.5-12.2Week-low of 0.46 Steepest Fall; VI*=1.4

[Volume Index (VI); 1 is average]

5.2 Rank in the bottom 22% by Price Performance in the Canadian market

DescriptionValueRank
1-month Price Change %-6.0In Bottom 22%
Price/MAP2000.37In Bottom 6%

5.3 Downtrend

Price/Moving Average Price of 0.37:

- The Price/MAP 200 of 0.37 for Bombardier Class B is lower than the Price/MAP 200 for the S&P/TSX 60 Index of 0.78.

- The price to 200-day MAP ratio is 0.37, a bearish indicator. In the past 200 days this ratio has been under 0.37, 53 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of 53.64c is lower than the 200-day MAP of CAD1.27, another bearish indicator.

- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 200 days this ratio has been under 0.9 40 times suggesting further downside. The 50-day EMAP has decreased to 53.36c. A decrease is another bearish indicator.

SECTION 6 Ongoing Bearish Parameters

6.1 Past two-years

- The shares fell CAD3.0 (57.1%) a year ago which accelerated to CAD1.78 (79.1%) in the past year.

- Bombardier Class B fell for a second consecutive year. In the previous year the shares fell CAD3.0 (57.1%).

6.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < -19.3%

TSR %1 yr3 yrs5 yrs10 yrs
BBD.B.TSX-79.1-43.1-28.1-19.4

6.3 Present Value of CAD1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PVCAD1000 < 960

PVCAD1,0003 mo ago1 yr ago
BBD.B.TSXCAD959CAD209
Aerospace & Defense sectorCAD1,303CAD607
S&P/TSX 60 IndexCAD1,309CAD946

6.4 The Worst Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % < -4

3-Year price change of -81.9% for Bombardier Class B underperformed the change of 4.8% in the S&P/TSX 60 index for a relative price change of -86.6%.

Price Change %QuarterYear3 Years
Bombardier Class B-4.1-79.1-81.9
Aerospace & Defense sector30.3-39.3-17.9
S&P/TSX 60 index29.5-5.44.8

6.5 Moving Annual Return of -79.1% in the past year:

Moving Annual Return was -79.1% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged -5.4%. The Moving Annual Return has been negative in 3 out of 5 years.

BBD.BClose (CAD)Annual Return %
Jun 220.47(79.1)
1 Yr ago2.25(55.4)
2 Yrs ago5.0595.0
3 Yrs ago2.5932.1
4 Yrs ago1.96(19.7)

Close 5 years ago CAD2.44

6.6 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

6.7 Declining VWAP, down 30% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has decreased by 29.8% to CAD1.05. .

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

YearHigh PriceVWAPLow Price
20202.341.050.38
20195.582.891.58
20185.363.351.96
20172.762.161.56
20162.51.490.72

6.8 Declining share turnover, down 14% in 5 years

In the past five years, average daily share turnover has decreased 14.1% to CAD12.2 million (US$9 million). This suggests decreased liquidity.

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

YearAverage Daily Turnover
202012.2
201931.4
201823.8
201712.4
201614.2

6.9 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