BlackBerry Limited (BB): a likely value trap?

Avoid — this isn't a bargain crash, it's a meme-stock rally deflating from a still-expensive price (86x trailing earnings).

⚠ TRAP Fundamentals62/100

Fell 24% in 11 trading day(s) — now $8.63

Why BB dropped

BlackBerry rallied over 180% year-to-date after a strong fiscal Q1 beat in late June, turning it into a meme-style momentum trade; the recent -24.5% slide is that rally unwinding as profit-takers exit and analysts flag the valuation as stretched, not a new fundamental problem.

Fwd P/E 37.8Op margin 10.3%Rev growth 25.6%Debt/equity 29.5%Analyst upside 12.6%

How this scored 62/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.3%

✅ Generates cash Free cash flow $105M

✅ Not drowning in debt Debt/equity 29.5% (limit 200%)

✅ Can pay its bills Current ratio 2.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 9/25

Operating margin 10.3% 4/9

Net profit margin 10.3% 4/8

Return on equity 8.1% 1/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 25.6% 9/9

Earnings growth 216.3% 8/8

Expected profit change 128.6% 8/8

Value Is it cheap right now? 5/25

Forward P/E 37.8 1/10

PEG ratio 2.2 3/8

Analyst target upside 12.6% 1/7

Balance sheet Will it survive? 23/25

Debt / equity 29.5% 9/10

Current ratio 2.2 6/8

Free cash flow $105M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-24. Research only — not financial advice.