Bombardier Inc. T.BBD.A

BOMBARDIER TSE:BBD.B

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Sentiment Still Eluding Bombardier Inc. (TSE:BBD.B)

Simply Wall St

Tue, April 18, 2023 at 2:42 PM GMT-4

You may think that with a price-to-sales (or "P/S") ratio of 0.7x Bombardier Inc. (TSE:BBD.B) is a stock worth checking out, seeing as almost half of all the Aerospace & Defense companies in Canada have P/S ratios greater than 2.6x and even P/S higher than 12x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

What Does Bombardier's Recent Performance Look Like?

Bombardier could be doing better as it's been growing revenue less than most other companies lately. It seems that many are expecting the uninspiring revenue performance to persist, which has repressed the growth of the P/S ratio. If you still like the company, you'd be hoping revenue doesn't get any worse and that you could pick up some stock while it's out of favour.

Is There Any Revenue Growth Forecasted For Bombardier?

The only time you'd be truly comfortable seeing a P/S as low as Bombardier's is when the company's growth is on track to lag the industry.

If we review the last year of revenue growth, the company posted a worthy increase of 14%. Still, lamentably revenue has fallen 7.7% in aggregate from three years ago, which is disappointing. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

Turning to the outlook, the next three years should generate growth of 8.6% per annum as estimated by the twelve analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 9.0% per year, which is not materially different.

https://finance.yahoo.com/news/sentiment-still-eluding-bombardier-inc-184238547.html