Bombardier (BBD.B) AI Stock Analysis

• Market Cap: $16.23B
• Dividend Yield: N/A
• Average Volume (3M): 631.13K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.66
• Revenue Growth: 16.31%
• EPS Growth: 4.12%
• Country: CA
• Employees: 17,900
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 0.84
• Shares Outstanding: 87,872,185
• 10 Day Avg. Volume: 1,026,447
• 30 Day Avg. Volume: 631,135
• PEG Ratio: -1.40
• Price to Book (P/B): -6.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.61
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 9.01
• Enterprise Value/Ebitda: 3.52
• 1Y Price Target: $155.22
• Price Target Upside: -4.84% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: C$182.00 ▲(11.57%Upside)

Bombardier's strong earnings call and technical bullish momentum are major positives, offset by valuation concerns and balance sheet risks. The company's strategic growth initiatives and improved cash management are promising, but high debt levels and market price may pose risks.

Positive Factors

Aircraft Demand

Business jet demand fundamentals are solid, with strong flight activities and declining inventories of used aircraft supporting the market.

Earnings and Cash Flow

Improving end market demand, cost restructuring, and lowered interest costs are expected to significantly enhance earnings and cash flow.

Financial Performance

Despite fewer deliveries and a less favorable aircraft mix, BBD exceeded financial targets, reflecting resilience.

Negative Factors

Supply Chain Challenges

Supply chain issues, particularly with engine deliveries, remain a challenge for the company.

Tariff Risk

Tariff-related uncertainties may create disruptions in orders, posing a potential challenge.

Bombardier Business Overview & Revenue Model

Company Description

Bombardier Inc. (BBD.B) is a Canadian multinational manufacturer specializing in the design, development, and production of business jets. The company operates primarily within the aerospace sector, offering a range of aircraft including the Learjet, Challenger, and Global series. Bombardier focuses on providing high-performance business aircraft, aftermarket services, and specialized aircraft solutions to customers worldwide.

How the Company Makes Money

Bombardier generates revenue through the sale of business jets, which forms the core of its income stream. The company also earns money from providing aftermarket services, including maintenance, repair, and overhaul services, as well as the sale of spare parts to its aircraft clients. Additionally, Bombardier's specialized aircraft solutions, which tailor aircraft for specific roles such as surveillance or medical evacuation, contribute to its revenue. Strategic partnerships and contracts with government and private sector clients further enhance the company's earnings.

Bombardier Financial Statement Overview

Summary

Bombardier shows strong revenue growth and improving profitability, with enhanced cash management. However, high leverage and negative equity are significant risks.

Income Statement

Bombardier's income statement shows a strong Gross Profit Margin of approximately 20.1% and an improving Net Profit Margin of 3.4% in the TTM period. The company has demonstrated consistent revenue growth over the past few years, with a notable increase from $6.91 billion in 2022 to $8.91 billion in the TTM. EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency. However, net income has fluctuated, highlighting some volatility in bottom-line performance.

Balance Sheet

The balance sheet reveals a high leverage situation with a negative stockholders' equity of approximately $-1.94 billion and a substantial total debt of $5.25 billion. The Debt-to-Equity Ratio is not meaningful due to negative equity, but the trend shows efforts in reducing debt levels. The Equity Ratio remains negative due to the persistent negative equity, posing a risk to financial stability. Despite these challenges, the company has managed to maintain a stable asset base.

Cash Flow

Operating cash flow has improved significantly to $477 million in the TTM, with a steady increase in free cash flow, reaching $315 million. This reflects better cash management and operational efficiency. The Operating Cash Flow to Net Income Ratio indicates strong cash generation relative to reported net income. Despite these improvements, fluctuations in free cash flow growth suggest some volatility in cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.66B	8.05B	6.91B	6.08B	6.49B
Gross Profit	1.78B	1.63B	1.26B	924.00M	516.00M
EBITDA	1.17B	933.00M	722.00M	635.00M	87.00M
Net Income	370.00M	445.00M	-128.00M	-249.00M	-170.00M
Balance Sheet
Total Assets	12.67B	12.46B	12.32B	12.76B	23.09B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.69B	1.76B	1.75B	2.68B
Total Debt	5.54B	5.61B	5.98B	7.05B	10.07B
Total Liabilities	14.66B	14.86B	15.09B	15.85B	29.75B
Stockholders Equity	-1.99B	-2.40B	-2.76B	-3.09B	-9.32B
Cash Flow
Free Cash Flow	232.00M	257.00M	717.00M	95.00M	-3.19B
Operating Cash Flow	405.00M	623.00M	1.07B	332.00M	-2.82B
Investing Cash Flow	-164.00M	118.00M	-304.00M	-89.00M	967.00M
Financing Cash Flow	-203.00M	-438.00M	-1.13B	-3.21B	1.71B

Bombardier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 163.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 163.12 is above the 20-day moving average (MA) of 133.79, above the 50-day MA of 109.83, and above the 200-day MA of 97.07, indicating a bullish trend. The MACD of 16.24 indicates Negative momentum. The RSI at 89.44 is Negative, neither overbought nor oversold. The STOCH value of 96.26 is Negative, 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	79 Outperform	C$4.85B	48.36	8.54%	―	49.98%	108.76%
CAE	78 Outperform	$12.64B	31.82	8.87%	―	7.89%	―
BBD.B	73 Outperform	$16.23B	42.35	-18.58%	―	16.31%	4.12%
MAL	73 Outperform	C$1.05B	26.14	5.12%	1.09%	8.59%	242.80%
Sector *	70 Neutral	¥170.86B	10.68	4.42%	3.06%	5.63%	-31.54%

Bombardier Corporate Events

Bombardier Reports Strong Q1 2025 Financial Performance and Positive Outlook

Bombardier Inc. reported significant financial growth in the first quarter of 2025, with revenues increasing by 19% to $1.5 billion, driven by additional aircraft deliveries and steady growth in its services sector. The company achieved a 21% rise in adjusted EBITDA, reflecting robust profitability and operational efficiency. Bombardier’s strategic focus on sustainable growth is evident in its improved free cash flow and strong backlog, positioning it well for future opportunities despite global economic uncertainties. The company’s positive 2025 guidance underscores its commitment to maintaining momentum and achieving long-term profitability.