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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Comment by lb1temporaryon May 27, 2022 1:28pm
226 Views
Post# 34712697

RE:RE:RE:RE:RE:RE:RE:RE:RE:3 companies that

RE:RE:RE:RE:RE:RE:RE:RE:RE:3 companies thatUtopiaan imagined place or state of things in which everything is perfect.

Some dream of a dividend some times after the RS. Utopia.

Bombardier is rated CCC+, a very weak rating. T
he use of future FCFs is already determined; Capex, models development and reducing Debt if  there are any left.

To call a dividend a company needs to have a FCF margin (the dividend rate is usually between 30% and 70% of the FCF; 70% for an operation with low volatility like real estate and a lower rate for a more volatile operation). 

Bombardier as a pure plane builder is in an cyclical business with a good profit level in positive times and weak results in difficult times. A very bad profile for a regular dividend.

Anyway, investors will never be attracted by a dividend with this kind of profile but by the potential level of profits in the good times.

The game is not a potential dividend but a reasonable leverage to deliver high profit in positive times (not too much equity) and pass through easily more difficult times (not too much debt).
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