BlackBerry Limited Common Stock (BB)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at a sensible price. BlackBerry is a turnaround, not a bargain. In fiscal 2026, the year ended 2026-02-28, revenue was $549.1 million and net income was $53.2 million, or $0.09 per diluted share. That followed a net loss of $79.0 million in fiscal 2025 and $130.2 million in fiscal 2024, so management has stopped the bleeding. The latest filed quarter, fiscal Q2 2027, the quarter ended 2026-08-31, showed revenue of $163.3 million and net income of $33.9 million, up from revenue of $129.6 million and net income of $13.3 million in fiscal Q2 2026, the quarter ended 2025-08-31. That is real improvement. Still, at the 2026-10-13 close of $8.47, the FairStock-calculated P/E is 84.70 and P/B is 6.62. FairStock's Graham Number is $1.70, implying a margin of safety of -398.24%, and the free cash flow yield is only 1.2%. Return on equity is 8.10% and return on capital employed is 3.92%, which are not the hallmarks of a wide moat. The balance sheet is reasonable with debt-to-equity of 0.29 and an Altman Z-Score of 4.12, and the Piotroski F-Score is 5/9. The market is paying a high price for a small profit and a possible future in secure communications, QNX, and licensing. If profits keep compounding, today's price may be justified; if growth stalls, there is little valuation cushion.

In plain English: BlackBerry sells security software and software used in cars and other machines. It has stopped losing money and sales are growing again, but profits are still small and the business earns only modest returns. The stock price looks high compared with those small profits and the company's net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-31) · fiscal Q1 2027 10-Q (period ended 2026-05-31) · fiscal Q3 2026 10-Q (period ended 2025-11-30) · fiscal Q2 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-02-28) · FY2025 10-K (period ended 2025-02-28) · FY2024 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer