BlackBerry's current valuation presents an intriguing scenario for investors seeking opportunities in the Software - Infrastructure sector. With a market capitalization of
2.2B and a price-to-earnings ratio of 50.47X, the stock appears to be priced for growth despite recent challenges. The company's net income reflects a loss of
130M, which might raise concerns, but its strong current ratio of 1.82X suggests it maintains a healthy liquidity position to cover short-term obligations. This mix of financial metrics could indicate potential for value appreciation if BlackBerry successfully leverages its strategic pivots and innovations.
Key Points
BlackBerry has total liabilities of $252 million and a debt-to-equity ratio of 0.4, which is typical for its industry. The company also maintains a current ratio of 1.78, indicating a healthy balance between assets and liabilities. While BlackBerry's debt levels are manageable, leveraging debt can still be a strategic move to fuel growth with potentially high returns. Our trading advice aligns with the current expert consensus on BlackBerry. We utilize a sophisticated recommendation engine that evaluates the company's growth potential by analyzing comprehensive technical and fundamental data.
We determine the current worth of BlackBerry using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of BlackBerry based exclusively on its
fundamental and basic
technical indicators. By analyzing BlackBerry's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
BlackBerry's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of BlackBerry. We calculate exposure to BlackBerry's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to BlackBerry's related companies.
BlackBerry Investment Alerts
BlackBerry investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring BlackBerry performance across your portfolios.Please check all
investment alerts for BlackBerry
BlackBerry Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare BlackBerry value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across BlackBerry competition to find
correlations between indicators driving the intrinsic value of BlackBerry.
BlackBerry Gross Profit
BlackBerry Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BlackBerry previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show BlackBerry Gross Profit growth over the last 10 years. Please check BlackBerry's
gross profit and other
fundamental indicators for more details.
Breaking down BlackBerry Further
The current indifference towards the small price fluctuations of BlackBerry could raise concerns from investors as the firm is trading at a share price of
3.79 on very low momentum in volume. The company management teams did not add any value to BlackBerry investors in
March. However, most investors can still diversify their portfolios with BlackBerry to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.38. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the BlackBerry partners.
| 2022 | 2023 | 2024 | 2025 (projected) |
Total Operating Expenses | 643M | 645M | 741.8M | 1.5B | Cost Of Revenue | 237M | 333M | 383.0M | 363.8M |
Margins Breakdown
BlackBerry profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or BlackBerry itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of BlackBerry profit margins.
| Pretax Profit Margin | (0.15) |
| Operating Profit Margin | (0.13) |
| Net Profit Margin | (0.18) |
| Gross Profit Margin | 0.38 |
BlackBerry Price To Sales Ratio is decreasing over the last 8 years. The current value of BlackBerry Price To Sales Ratio is 2.08. Also, BlackBerry Market Cap is somewhat stable at the moment. They say, "Buy low, sell high," and BlackBerry's current valuation might just be the opportunity some investors are looking for. With a market capitalization of $2.24 billion and a price-to-earnings ratio of 50.47x, the stock appears to be priced for growth, despite recent challenges. The company, operating in the Software - Infrastructure industry, reported a net income loss of $130 million, highlighting ongoing profitability issues. However, with a book value per share of 1.23x and a potential upside of 7.19%, there could be room for optimism if BlackBerry can leverage its assets effectively. As always, potential investors should weigh these factors carefully against the backdrop of a 13.32% probability of bankruptcy..
BlackBerry is expecting lower volatility in May
BlackBerry's stock recently faced a 19.54% dip, highlighting its sensitivity to market shifts. However, the company anticipates reduced volatility in May, which could make the stock more attractive to those wary of sudden price changes. This potential for a steadier trading environment might entice investors looking for less turbulence. While the recent drop underscores the stock's susceptibility to market swings, a calmer outlook could present a more favorable scenario for potential investors. BlackBerry's above-average downside volatility means that understanding market trends is crucial for timing investments effectively. In bear markets, increased volatility can heavily influence BlackBerry's stock price, often prompting investors to adjust their portfolios by diversifying as prices decline.
Our Conclusion on BlackBerry
Whereas other entities within the software—infrastructure industry are still a little expensive, even after the recent corrections, BlackBerry may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of BlackBerry nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BlackBerry.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nico Santiago do not own shares of BlackBerry. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
