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


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

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


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

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

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

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


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

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

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
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

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

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

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%].


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