BCE INC - BCECN 4.95 PERP (BCE-PR-B.CA) Stock Fundamental Analysis
TSX:BCE-PR-B - Toronto Stock Exchange - CA05534B6952 - Currency: CAD
Overall BCE-PR-B gets a fundamental rating of 5 out of 10. We evaluated BCE-PR-B against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-B scores excellent on profitability, but there are concerns on its financial health. BCE-PR-B is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-B was profitable.
In the past year BCE-PR-B had a positive cash flow from operations.
BCE-PR-B had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE-PR-B had a positive operating cash flow.
1.2 Ratios
BCE-PR-B has a Return On Assets of 0.54%. This is in the better half of the industry: BCE-PR-B outperforms 63.33% of its industry peers.
With a decent Return On Equity value of 2.26%, BCE-PR-B is doing good in the industry, outperforming 63.33% of the companies in the same industry.
BCE-PR-B has a better Return On Invested Capital (5.04%) than 63.33% of its industry peers.
BCE-PR-B had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-B is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROIC | 5.04% |
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
The Profit Margin of BCE-PR-B (1.61%) is better than 63.33% of its industry peers.
BCE-PR-B's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 22.74%, BCE-PR-B is doing good in the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BCE-PR-B has remained more or less at the same level.
BCE-PR-B has a better Gross Margin (68.27%) than 70.00% of its industry peers.
BCE-PR-B's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCE-PR-B is destroying value.
The number of shares outstanding for BCE-PR-B remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE-PR-B has more shares outstanding
BCE-PR-B has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that BCE-PR-B is in the distress zone and has some risk of bankruptcy.
BCE-PR-B has a worse Altman-Z score (0.53) than 63.33% of its industry peers.
BCE-PR-B has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-B would need 11.06 years to pay back of all of its debts.
BCE-PR-B has a Debt to FCF ratio of 11.06. This is in the better half of the industry: BCE-PR-B outperforms 73.33% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE-PR-B has dependencies on debt financing.
BCE-PR-B's Debt to Equity ratio of 1.95 is fine compared to the rest of the industry. BCE-PR-B outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.82
WACC6.11%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-B may have some problems paying its short term obligations.
BCE-PR-B's Current ratio of 0.64 is fine compared to the rest of the industry. BCE-PR-B outperforms 66.67% of its industry peers.
BCE-PR-B has a Quick Ratio of 0.64. This is a bad value and indicates that BCE-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-B has a better Quick ratio (0.61) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-B have decreased by -2.27% in the last year.
Measured over the past years, BCE-PR-B shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
Looking at the last year, BCE-PR-B shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
3.2 Future
The Earnings Per Share is expected to grow by 7.91% on average over the next years.
BCE-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.89%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.00, which indicates a rather cheap valuation of BCE-PR-B.
Based on the Price/Earnings ratio, BCE-PR-B is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. BCE-PR-B is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.68, the valuation of BCE-PR-B can be described as very cheap.
Based on the Price/Forward Earnings ratio, BCE-PR-B is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, BCE-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
BCE-PR-B's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCE-PR-B is cheaper than 76.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE-PR-B is valued a bit cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
BCE-PR-B has a very decent profitability rating, which may justify a higher PE ratio.
BCE-PR-B's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
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 6.62%, BCE-PR-B is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, BCE-PR-B has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, BCE-PR-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
5.2 History
The dividend of BCE-PR-B has a limited annual growth rate of 4.82%.
BCE-PR-B has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BCE-PR-B pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-B (6/26/2025, 7:00:00 PM)
18.05
+0.16 (+0.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap16.64B
Analysts52.73
Price Target20.61 (14.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)9.09%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)3.75%
Min EPS beat(4)-3.58%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)2.52%
EPS beat(16)10
Avg EPS beat(16)2.92%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1%
Revenue beat(16)2
Avg Revenue beat(16)-1.16%
PT rev (1m)6.03%
PT rev (3m)11.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.68 | ||
| P/FCF | 4.69 | ||
| P/OCF | 2.19 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)3.01
EY16.68%
EPS(NY)2.7
Fwd EY14.98%
FCF(TTM)3.84
FCFY21.3%
OCF(TTM)8.24
OCFY45.65%
SpS26.39
BVpS18.8
TBVpS-10.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 9.46% | ||
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% | ||
| FCFM | 14.57% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 80.2% | ||
| Cap/Sales | 16.65% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 71.77% | ||
| Profit Quality | 906.39% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.53 |
F-Score6
WACC6.11%
ROIC/WACC0.82
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)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
FCF growth 1Y39.2%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-2.7%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%