Blackmaster (TSX: BB) is one of the most recognizable technology companies in Canada. Yet the market does not seem to recognize the chance that is accompanied by the long history of technological excellence of Blackberry. It is certainly a fleeting history, but today all this has translated into a very attractive opportunity to buy BlackBerry shares.
BlackBerry -Shares: undervalued and undervalued
I would like to start assessing Blackberry’s share performance in recent years. As you can see in the price chart below, the share has fallen 46% in the last five years and is traded at about the same level as five years ago. It has largely been dead money. So I can certainly see why the market is missing interest.
As investors, however, we have to worry about the future. Although a negative history should certainly be considered one of the variables to look at, it should not overwhelm our opinion about a share. So let’s take a good look at the present and the future of Blackberry.
Recent results signal strength
Blackberry reported his first quarter, tax results of 2026 in June. In short, these results were quite strong and defeated the upper end of the company’s guidance on both the top rule and the bottom line.
The turnover of $ 121.7 million was accompanied by a profit per share of $ 0.02. This EPS result was at the top of the expectations that called for a break-even bottom line result, and compared with a loss of $ 0.03 in the same period last year.
The strong win results was powered by an increase of 55% in adapted income before interest, taxes, depreciation and amortization (EBITDA), as well as efficiency gains. Last year, management actually reduced costs by $ 150 million in his search to streamline the company and the judge.
The future of Blackberry brands
As I said at the start of this article, Blackberry has a long history of technical depth and expertise, which has introduced the solid reputation of the company as a technology leader. BlackBerry’s Two main segments, QNX and secure communication, pick the rewards.
The first segment, QNX, is the segment of the machine-to-machine embedded software solutions from Blackberry. This includes operating systems that make connected cars possible, as well as medical devices, industrial applications and robotics. This is the fast -growing Blackberry segment.
The second segment is the secure communication of Blackberry. This is a solid and steady company that offers safe communication for governments, banks and more that must protect their information to protect their sovereignty and to monitor their privacy. Blackberry is the choice of many governments and companies for their mission -critical communication.
More about BlackBerry’s QNX
QNX is a strong presence in the auto -motif. About 90 million cars are made every year. Of these cars, around 20% are more advanced software vehicles, where 80% only have the basic software. In the 20% of the advanced software vehicles, BlackBerry has a market share of more than 90%.
The QNX company consists of long-term contracts. We must therefore be patient. But as soon as a car is produced and the royalties begin to come in, it almost just falls until the bottom line – it’s all pure profit. The backlog for QNX is currently at $ 865 million.
In my opinion, the market does not recognize the potential of this company. Blackberry drives to a consistent growth with double digits on the QNX side, with a good leverage of the business model. The Secure Communications segment will continue to finance QNX to be able to take advantage of BlackBerry from the considerably expected growth that is expected there.
The Bottom Line
Although not without risks, I believe that Blackberry shares is a very strong buy. This article is about some of the reasons why I am of this vision, but you can also view my other recent articles for more.
BlackBerry will report his quarterly results on 25 September, at what time we can evaluate the company and its progress.
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