Bombardier (BBD.B) AI Stock Analysis

• Market Cap: $19.56B
• Dividend Yield: N/A
• Average Volume (3M): 437.10K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.71
• Revenue Growth: 6.69%
• EPS Growth: 64.89%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.55
• Shares Outstanding: 88,060,200
• 10 Day Avg. Volume: 262,635
• 30 Day Avg. Volume: 437,099
• PEG Ratio: -0.63
• Price to Book (P/B): -3.36
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 28.86
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 10.80
• Enterprise Value/Ebitda: 15.23
• 1Y Price Target: $195.35
• Price Target Upside: -0.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: C$204.00 ▲(4.14% Upside)

Bombardier's overall stock score reflects a balanced view of its financial challenges and technical strengths. The company's high debt levels and negative equity are significant risks, but improvements in profitability and technical indicators provide some optimism. The earnings call adds positive sentiment with strong order growth and financial strategy improvements, though supply chain issues and revenue decline are concerns.

Positive Factors

Strong Order Backlog

A growing backlog indicates strong future demand and revenue visibility, supporting long-term business stability and growth.

Services Revenue Growth

Increasing services revenue enhances profitability and provides a stable income stream, reducing reliance on new aircraft sales.

Debt Refinancing and Credit Upgrades

Refinancing and credit upgrades improve financial flexibility and reduce borrowing costs, strengthening long-term financial health.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Negative Revenue Growth

Negative revenue growth suggests challenges in market demand or competitive positioning, which could hinder long-term expansion.

Supply Chain Challenges

Ongoing supply chain issues can disrupt production and delivery schedules, affecting revenue and customer satisfaction over time.

Bombardier Business Overview & Revenue Model

Company Description

Bombardier Inc. engages in the manufacture and sale of business aircraft in Europe, North America, the Asia Pacific, and internationally. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, smart services, service centers, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is headquartered in Dorval, Canada.

How the Company Makes Money

Bombardier generates revenue primarily through the sale of business aircraft and rail transport solutions. The Business Aircraft segment contributes significantly to the company's earnings by selling both new aircraft and offering aftermarket services, including maintenance, repairs, and parts sales to existing customers. In the Transportation segment, Bombardier earns revenue through the design, manufacturing, and servicing of rail vehicles and systems, often through long-term contracts with governments and transit authorities. The company also benefits from strategic partnerships and joint ventures with other firms in the aerospace and rail industries, enhancing its market reach and operational capabilities. Additionally, Bombardier's focus on innovation, particularly in electric and hybrid technologies for both aviation and rail, positions it well for future growth and revenue opportunities.

Bombardier Financial Statement Overview

Summary

Bombardier's financial statements reflect challenges in revenue growth and financial leverage. Improvements in profitability margins are offset by high debt levels and negative equity, posing significant risks. Cash flow generation is concerning, though there is some ability to convert earnings into cash.

Income Statement

Bombardier's income statement shows a mixed performance. The company has maintained a positive gross profit margin, but it has slightly decreased from the previous year. The net profit margin has improved, indicating better cost management. However, the revenue growth rate has turned negative in the TTM period, suggesting challenges in sales growth. EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio due to negative equity. This poses a risk to financial stability. Return on equity is negative, indicating challenges in generating returns for shareholders. The equity ratio is also negative, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to earnings. However, the free cash flow to net income ratio is relatively healthy, indicating some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.73B	8.66B	8.05B	6.91B	6.08B	6.49B
Gross Profit	1.75B	1.78B	1.63B	1.26B	924.00M	516.00M
EBITDA	1.24B	1.07B	933.00M	608.00M	336.00M	-92.00M
Net Income	463.00M	370.00M	445.00M	-148.00M	5.04B	-868.00M
Balance Sheet
Total Assets	12.84B	12.66B	12.37B	12.44B	12.64B	23.04B
Cash, Cash Equivalents and Short-Term Investments	809.27M	1.65B	1.58B	1.30B	1.66B	1.78B
Total Debt	5.68B	5.96B	6.01B	6.49B	7.25B	10.29B
Total Liabilities	14.47B	14.65B	14.76B	15.23B	15.70B	29.69B
Stockholders Equity	-1.63B	-1.99B	-2.39B	-2.79B	-3.06B	-9.31B
Cash Flow
Free Cash Flow	173.42M	220.86M	261.17M	695.66M	-517.17M	-3.35B
Operating Cash Flow	335.08M	385.55M	633.10M	1.04B	-284.15M	-2.96B
Investing Cash Flow	-164.50M	-137.09M	119.91M	-315.33M	2.46B	1.42B
Financing Cash Flow	-414.02M	-193.25M	-445.10M	-1.10B	-2.92B	1.39B

Bombardier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 195.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BBD.B, the sentiment is Positive. The current price of 195.89 is above the 20-day moving average (MA) of 194.48, above the 50-day MA of 178.74, and above the 200-day MA of 123.06, indicating a bullish trend. The MACD of 4.11 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BBD.B.

Bombardier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	―	C$4.44B	37.31	9.64%	―	57.21%	136.79%
CAE	―	$12.88B	30.93	8.73%	―	8.04%	―
MAL	―	C$918.79M	24.23	4.85%	0.84%	6.58%	121.23%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.B	―	$19.56B	31.47	―	―	6.69%	64.89%

Bombardier Corporate Events

Bombardier’s Earnings Call: Strong Orders and Growth

Bombardier’s recent earnings call painted a picture of robust performance, highlighted by significant service revenue growth, a major aircraft order, and successful debt refinancing. Despite facing some supply chain challenges and a dip in aircraft manufacturing revenue, the overall sentiment was positive, buoyed by strong cash flow projections and improved credit ratings.

Bombardier’s Q2 2025 Earnings Highlight Strong Backlog Growth

Bombardier Inc., a leading manufacturer in the aviation industry, specializes in designing, building, and maintaining high-performance aircraft for various sectors, including business, government, and military.

Bombardier’s Strong Q2 Performance Bolsters Market Position

Bombardier reported its financial results for the second quarter of 2025, highlighting a significant increase in its order backlog to $16.1 billion, marking the highest business jet unit order volume in over a decade. The company delivered 36 aircraft and saw a 16% year-over-year increase in services revenue, supporting its trajectory to meet full-year guidance. A credit rating upgrade and strategic expansions in service infrastructure, including new facilities in Abu Dhabi and the UK, underscore Bombardier’s robust market positioning and growth potential.

The most recent analyst rating on ($TSE:BBD.B) stock is a Buy with a C$129.00 price target. To see the full list of analyst forecasts on Bombardier stock, see the TSE:BBD.B Stock Forecast page.