BBBlackBerry Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.3×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BB?
BlackBerry Limited earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.8 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2027
- Cash conversion
- 1.35×
Cash conversion · 2.10× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +8.8%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −124% |
| FY2022 | −0.28% |
| FY2023 | −39% |
| FY2024 | 1.5% |
| FY2025 | 0.15% |
| FY2026 | 8.8% |
Details›
- Gross margin12 months to Q2 2027
- 78%
- Operating margin12 months to Q2 2027
- 14%
- Net margin12 months to Q2 2027
- 13%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 21%
- Revenue, trailing twelve months
- $614M
- Free cash flow, trailing twelve months
- $92M
- Net income, trailing twelve months
- $80M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #46 of 80 by RyuScore