BCE INC - BCECN 4.94 PERP (BCE-PR-A.CA) Stock Fundamental Analysis
TSX:BCE-PR-A - Toronto Stock Exchange - CA05534B7943 - Currency: CAD
BCE-PR-A gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE-PR-A have multiple concerns. BCE-PR-A has a valuation in line with the averages, but it does not seem to be growing. BCE-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE-PR-A had positive earnings in the past year.
In the past year BCE-PR-A had a positive cash flow from operations.
In the past 5 years BCE-PR-A has always been profitable.
Each year in the past 5 years BCE-PR-A had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BCE-PR-A (0.22%) is worse than 70.00% of its industry peers.
BCE-PR-A has a Return On Equity of 0.95%. This is in the lower half of the industry: BCE-PR-A underperforms 70.00% of its industry peers.
With a Return On Invested Capital value of 5.18%, BCE-PR-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-A is in line with the industry average of 5.52%.
The 3 year average ROIC (4.90%) for BCE-PR-A is below the current ROIC(5.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 5.18% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
1.3 Margins
BCE-PR-A has a Profit Margin of 0.67%. This is in the lower half of the industry: BCE-PR-A underperforms 70.00% of its industry peers.
BCE-PR-A's Profit Margin has declined in the last couple of years.
BCE-PR-A has a worse Operating Margin (22.73%) than 70.00% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-A has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.43%, BCE-PR-A is doing worse than 63.33% of the companies in the same industry.
BCE-PR-A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
OM growth 3Y0.29%
OM growth 5Y-0.91%
PM growth 3Y-61.33%
PM growth 5Y-44.58%
GM growth 3Y-0.23%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
BCE-PR-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BCE-PR-A has about the same amount of shares outstanding.
BCE-PR-A has more shares outstanding than it did 5 years ago.
BCE-PR-A has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-A has an Altman-Z score of 0.49. This is a bad value and indicates that BCE-PR-A is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, BCE-PR-A is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BCE-PR-A has a debt to FCF ratio of 14.54. This is a negative value and a sign of low solvency as BCE-PR-A would need 14.54 years to pay back of all of its debts.
BCE-PR-A has a Debt to FCF ratio of 14.54. This is in the lower half of the industry: BCE-PR-A underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE-PR-A has dependencies on debt financing.
BCE-PR-A's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.29
WACC4%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BCE-PR-A may have some problems paying its short term obligations.
BCE-PR-A's Current ratio of 0.60 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 70.00% of its industry peers.
BCE-PR-A has a Quick Ratio of 0.60. This is a bad value and indicates that BCE-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-A has a worse Quick ratio (0.57) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-A have decreased by -5.30% in the last year.
BCE-PR-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
Looking at the last year, BCE-PR-A shows a decrease in Revenue. The Revenue has decreased by -1.07% in the last year.
Measured over the past years, BCE-PR-A shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
Based on estimates for the next years, BCE-PR-A will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
Based on estimates for the next years, BCE-PR-A will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year0.24%
Revenue Next 2Y1.35%
Revenue Next 3Y1.06%
Revenue Next 5Y2.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.60, the valuation of BCE-PR-A can be described as very cheap.
BCE-PR-A's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BCE-PR-A to the average of the S&P500 Index (28.79), we can say BCE-PR-A is valued rather cheaply.
A Price/Forward Earnings ratio of 6.15 indicates a rather cheap valuation of BCE-PR-A.
BCE-PR-A's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, BCE-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 6.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BCE-PR-A.
BCE-PR-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-A's earnings are expected to decrease with -2.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.09%, BCE-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.62, BCE-PR-A pays a better dividend. On top of this BCE-PR-A pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, BCE-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
5.2 History
The dividend of BCE-PR-A has a limited annual growth rate of 4.82%.
BCE-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
2331.29% of the earnings are spent on dividend by BCE-PR-A. This is not a sustainable payout ratio.
The dividend of BCE-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-A (4/25/2025, 7:00:00 PM)
17.03
-0.02 (-0.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.70B
Analysts50.91
Price Target19.51 (14.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)1.87%
PT rev (3m)-6%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 6.15 | ||
| P/S | 0.64 | ||
| P/FCF | 5.64 | ||
| P/OCF | 2.18 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)3.04
EY17.85%
EPS(NY)2.77
Fwd EY16.25%
FCF(TTM)3.02
FCFY17.74%
OCF(TTM)7.82
OCFY45.95%
SpS26.48
BVpS18.52
TBVpS-10.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 10.25% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
ROICexc(3y)5.01%
ROICexc(5y)5.05%
ROICexgc(3y)9.15%
ROICexgc(5y)9.15%
ROCE(3y)9.37%
ROCE(5y)9.44%
ROICexcg growth 3Y1.14%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.85%
ROICexc growth 5Y-2.9%
OM growth 3Y0.29%
OM growth 5Y-0.91%
PM growth 3Y-61.33%
PM growth 5Y-44.58%
GM growth 3Y-0.23%
GM growth 5Y-0.19%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.49 |
F-Score5
WACC4%
ROIC/WACC1.29
Cap/Depr(3y)97.8%
Cap/Depr(5y)98.75%
Cap/Sales(3y)19.56%
Cap/Sales(5y)19.53%
Profit Quality(3y)656.86%
Profit Quality(5y)446%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.24%
Revenue Next 2Y1.35%
Revenue Next 3Y1.06%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%