Highlights from the analysis by TheStreet Ratings Team goes as follows:
NEW YORK (TheStreet) — BlackBerry (BBRY_) was falling 4.8% to $10.76 Wednesday following the announcement of Apple’s (AAPL_) partnership with IBM (IBM_) to develop mobile apps for enterprise.
Apple’s partnership with IBM will see the two companies develop 100 apps for iPhone and iPad for businesses. The apps will help bring IBM’s big data tools and other services to iOS devices, with the hope of making them better suited for business use.
The deal, which hopes to “transform enterprise mobile” will increase competition for BlackBerry, which offers a secure communications platform for enterpris
The Street Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
“We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company’s weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow.”
BLACKBERRY LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, BLACKBERRY LTD reported poor results of -$11.17 versus -$1.20 in the prior year.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD’s return on equity significantly trails that of both the industry average and the S&P 500.
Net operating cash flow has significantly decreased to $302.00 million or 52.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm’s growth rate is much lower.
BBRY, with its very weak revenue results, has greatly underperformed against the industry average of 2.4%. Since the same quarter one year prior, revenues plummeted by 68.5%. Weakness in the company’s revenue seems to have hurt the bottom line, decreasing earnings per share.
Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that BBRY’s debt-to-equity ratio is mixed in its results, the company’s quick ratio of 2.11 is high and demonstrates strong liquidity.