Bombardier: Lack Of Near-Term Catalysts - Future Revenue May Decline
We do not see any near-term catalysts to materially move its share price higher
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August 10, 2019 - by Ploutos Investing for seekingalpha.com
Bombardier (OTCQX:BDRBF) (TSX:BBD.B) delivered a poor quarter as the company struggles to turn around its business. Management also lowered its adjusted EBITDA guidance for the year.
Looking forward, we do not see any near-term catalysts to materially move its share price higher.
A low book-to-bill ratio for its transportation segment means it will be difficult for the company to grow its revenue significantly.
While Bombardier delivered a revenue growth of 6% in its business aircraft segment, future growth may be limited due to a poor forecast. The company's leveraged balance sheet also is a concern. Despite the fact that its shares are undervalued relative to its peers, the risk is still high. Therefore, we think investors may want to wait on the sideline.
... its book-to-bill ratio of 0.9x is below 1x. This is not healthy and means that there are less new orders than orders completed. It means future revenue may decline...
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