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Bombardier Inc Registered Shs -B- Subord Vtg BBD.B

Morningstar Rating
CAD 63.79 +2.05 (3.32%)
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Company Report

Bombardier Earnings: Growing Backlog and Aftermarket Demand Shape the Runway for 2024

Narrow-moat-rated Bombardier had an influx of orders in the first quarter of 2024, ending the period with a robust $14.9 billion backlog. Although deliveries were less than stellar to start the year, Bombardier continues to see strong demand for its business jets. Revenue fell 12% year over year to $1.3 billion, primarily because of delivery mix shifting toward the medium-sized Challenger series and away from the large-cabin Global series. After adjusting slightly for delivery mix expectations through 2025, we raised our fair value estimate to CAD 92 from CAD 90.

Price vs Fair Value

BBD.B is trading at a 35% discount.
Price
CAD 58.76
Fair Value
CAD 85.00
Uncertainty
High
1-Star Price
CAD 894.70
5-Star Price
CAD 95.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Bombardier accounts for one third of all deliveries of long-range business jets, which makes it one of the biggest names in private aviation.

Bears

Bombardier increased its leverage before the pandemic and faces financial risk in the event of another shock to travel demand or the supply chain.

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News

Trading Information

Previous Close Price
CAD 61.74
Day Range
CAD 61.69–64.38
52-Week Range
CAD 39.87–68.79
Bid/Ask
CAD 63.60 / CAD 63.85
Market Cap
CAD 6.23 Bil
Volume/Avg
594,778 / 471,306

Key Statistics

Price/Earnings (Normalized)
10.41
Price/Sales
0.51
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Bombardier designs, manufactures, markets, and provides parts and maintenance for its large, long-range Global and medium-to-large Challenger aircraft families of business jets. Most of the company's revenue is generated in North America, with operations in Europe, North America, Asia-Pacific, and other markets.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Mid Core
Total Number of Employees
18,100

Competitors

Valuation

Metric
BBD.B
TXT
GD
Price/Earnings (Normalized)
10.4115.0523.39
Price/Book Value
—2.393.60
Price/Sales
0.511.251.80
Price/Cash Flow
4.4713.0019.40
Price/Earnings
BBD.B
TXT
GD

Financial Strength

Metric
BBD.B
TXT
GD
Quick Ratio
0.270.670.76
Current Ratio
1.031.811.44
Interest Coverage
1.5015.2513.19
Quick Ratio
BBD.B
TXT
GD

Profitability

Metric
BBD.B
TXT
GD
Return on Assets (Normalized)
2.39%6.36%6.58%
Return on Equity (Normalized)
—15.00%17.44%
Return on Invested Capital (Normalized)
18.19%10.52%12.06%
Return on Assets
BBD.B
TXT
GD
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