Bombardier logo

Bombardier

BBD-B.TO
51
Aerospace & Defense · Industrials
Price
C$310.49
-2.50 (-0.80%)
Market Cap
C$30.63B
Exchange
Toronto Stock Exchange
Winston Score
51
Winston looking curious
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Bombardier makes private jets for wealthy individuals and large corporations. Its main product line is the Learjet, Challenger, and Global series of business aircraft, with the flagship Global 7500 being one of the longest-range private jets in the world. The company sells to corporate flight departments, charter operators, and high-net-worth individuals across the globe.

Bombardier earns money by selling new aircraft and, increasingly, through aftermarket services like maintenance, repairs, and spare parts. It operates manufacturing facilities primarily in Canada, the United States, and Mexico, and generates revenue worldwide. The company exited commercial aviation in 2021 to focus entirely on business jets, which gives it a cleaner, more focused competitive position. Its growing services business provides steadier, recurring revenue, but the company still carries a heavy debt load from past restructuring, which remains a key financial risk to watch.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+24.3% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$271M/ year

Declining (-25% vs prior year)

2.8% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

12.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$1.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Winston looking curious
Growth context

Bombardier is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
15.6%
Thin — 15.6% gross margin
Operating Margin
11.1%
Modest — 11.1% operating margin
ROCE
5.0%
Weak — 5.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+7.8%
Steady sales growth (7.8% YoY)
EPS YoY
+261.7%
Earnings growing fast (261.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
212%
Turns 212% of profit into real cash
FCF Margin
19.0%
Converts sales into free cash efficiently (19.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
2.62x
Tight — interest eats into profit (2.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio
18.9x
Fair value — P/E 18.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-7.7
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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