BlackBerry Current Valuation vs. Return On Equity

BB Stock  USD 3.69  0.71  23.83%   
Based on the key profitability measurements obtained from BlackBerry's financial statements, BlackBerry may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess BlackBerry's ability to earn profits and add value for shareholders. At present, BlackBerry's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.30, whereas Price To Sales Ratio is forecasted to decline to 1.81. At present, BlackBerry's Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Income Quality is expected to grow to 0.02, whereas Accumulated Other Comprehensive Income is projected to grow to (13.3 M).
For BlackBerry profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BlackBerry to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BlackBerry utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BlackBerry's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BlackBerry over time as well as its relative position and ranking within its peers.
  

BlackBerry's Revenue Breakdown by Earning Segment

Check out Trending Equities.
For information on how to trade BlackBerry Stock refer to our How to Trade BlackBerry Stock guide.
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BlackBerry. If investors know BlackBerry will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BlackBerry listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.09)
Revenue Per Share
1.083
Quarterly Revenue Growth
0.098
Return On Assets
(0.02)
Return On Equity
(0.18)
The market value of BlackBerry is measured differently than its book value, which is the value of BlackBerry that is recorded on the company's balance sheet. Investors also form their own opinion of BlackBerry's value that differs from its market value or its book value, called intrinsic value, which is BlackBerry's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BlackBerry's market value can be influenced by many factors that don't directly affect BlackBerry's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between BlackBerry's value and its price as these two are different measures arrived at by different means. Investors typically determine if BlackBerry is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BlackBerry's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

BlackBerry Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BlackBerry's current stock value. Our valuation model uses many indicators to compare BlackBerry value to that of its competitors to determine the firm's financial worth.
BlackBerry is rated below average in current valuation category among its peers. It also is rated below average in return on equity category among its peers . At present, BlackBerry's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the BlackBerry's earnings, one of the primary drivers of an investment's value.

BlackBerry's Earnings Breakdown by Geography

BlackBerry Current Valuation vs. Competition

BlackBerry is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is currently estimated at about 3.78 Trillion. BlackBerry adds roughly 2.17 Billion in current valuation claiming only tiny portion of equities under Information Technology industry.

BlackBerry Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

BlackBerry

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
2.17 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

BlackBerry

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.18
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

BlackBerry Return On Equity Comparison

BlackBerry is currently under evaluation in return on equity category among its peers.

BlackBerry Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BlackBerry, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BlackBerry will eventually generate negative long term returns. The profitability progress is the general direction of BlackBerry's change in net profit over the period of time. It can combine multiple indicators of BlackBerry, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-14 M-13.3 M
Operating Income-125 M-118.8 M
Income Before Tax-106 M-100.7 M
Total Other Income Expense Net19 M19.9 M
Net Loss-130 M-123.5 M
Income Tax Expense24 M22.8 M
Net Loss-152 M-144.4 M
Net Loss-130 M-136.5 M
Interest Income1000 K950 K
Non Operating Income Net Other1.1 M1.1 M
Change To Netincome44.9 M42.6 M
Net Loss(0.22)(0.21)
Income Quality 0.02  0.02 
Net Income Per E B T 1.23  0.69 

BlackBerry Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on BlackBerry. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of BlackBerry position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the BlackBerry's important profitability drivers and their relationship over time.

Use BlackBerry in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if BlackBerry position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BlackBerry will appreciate offsetting losses from the drop in the long position's value.

BlackBerry Pair Trading

BlackBerry Pair Trading Analysis

The ability to find closely correlated positions to BlackBerry could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BlackBerry when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BlackBerry - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BlackBerry to buy it.
The correlation of BlackBerry is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as BlackBerry moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BlackBerry moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for BlackBerry can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your BlackBerry position

In addition to having BlackBerry in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Broad Debt ETFs Thematic Idea Now

Broad Debt ETFs
Broad Debt ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Debt ETFs theme has 233 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Broad Debt ETFs Theme or any other thematic opportunities.
View All  Next Launch
Check out Trending Equities.
For information on how to trade BlackBerry Stock refer to our How to Trade BlackBerry Stock guide.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project BlackBerry's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BlackBerry at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include BlackBerry's income statement, its balance sheet, and the statement of cash flows.
Potential BlackBerry investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although BlackBerry investors may work on each financial statement separately, they are all related. The changes in BlackBerry's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on BlackBerry's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.