BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-D - CA05534B6879
20.52 CAD
-0.1 (-0.48%)
Taking everything into account, BCE-PR-D scores 5 out of 10 in our fundamental rating. BCE-PR-D was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-D scores excellent on profitability, but there are concerns on its financial health. BCE-PR-D may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- BCE-PR-D had positive earnings in the past year.
- BCE-PR-D had a positive operating cash flow in the past year.
- Each year in the past 5 years BCE-PR-D has been profitable.
- In the past 5 years BCE-PR-D always reported a positive cash flow from operatings.
1.2 Ratios
- BCE-PR-D has a better Return On Assets (7.85%) than 86.67% of its industry peers.
- BCE-PR-D has a better Return On Equity (27.48%) than 80.00% of its industry peers.
- With a decent Return On Invested Capital value of 4.52%, BCE-PR-D is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-D is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 4.52% |
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
- Looking at the Profit Margin, with a value of 25.21%, BCE-PR-D belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- BCE-PR-D's Profit Margin has declined in the last couple of years.
- The Operating Margin of BCE-PR-D (22.38%) is better than 73.33% of its industry peers.
- In the last couple of years the Operating Margin of BCE-PR-D has remained more or less at the same level.
- With a decent Gross Margin value of 67.92%, BCE-PR-D is doing good in the industry, outperforming 76.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of BCE-PR-D has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% |
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 just above the Cost of Capital (WACC), so BCE-PR-D is still creating some value.
- Compared to 1 year ago, BCE-PR-D has about the same amount of shares outstanding.
- The number of shares outstanding for BCE-PR-D has been increased compared to 5 years ago.
- BCE-PR-D has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.60, we must say that BCE-PR-D is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.60, BCE-PR-D is doing worse than 70.00% of the companies in the same industry.
- BCE-PR-D has a debt to FCF ratio of 10.36. This is a negative value and a sign of low solvency as BCE-PR-D would need 10.36 years to pay back of all of its debts.
- BCE-PR-D has a Debt to FCF ratio of 10.36. This is in the better half of the industry: BCE-PR-D outperforms 73.33% of its industry peers.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE-PR-D has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.57, BCE-PR-D is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.04
WACC4.35%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE-PR-D may have some problems paying its short term obligations.
- BCE-PR-D has a better Current ratio (0.58) than 70.00% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE-PR-D may have some problems paying its short term obligations.
- The Quick ratio of BCE-PR-D (0.55) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- The earnings per share for BCE-PR-D have decreased by -3.65% in the last year.
- BCE-PR-D shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- BCE-PR-D shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
- The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
3.2 Future
- BCE-PR-D is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.73% yearly.
- BCE-PR-D is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 7.08, the valuation of BCE-PR-D can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-D indicates a rather cheap valuation: BCE-PR-D is cheaper than 86.67% of the companies listed in the same industry.
- BCE-PR-D's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 7.58, which indicates a rather cheap valuation of BCE-PR-D.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE-PR-D indicates a rather cheap valuation: BCE-PR-D is cheaper than 86.67% of the companies listed in the same industry.
- BCE-PR-D's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BCE-PR-D is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- 83.33% of the companies in the same industry are more expensive than BCE-PR-D, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
- The decent profitability rating of BCE-PR-D may justify a higher PE ratio.
- A cheap valuation may be justified as BCE-PR-D's earnings are expected to decrease with -3.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.15%, BCE-PR-D is a good candidate for dividend investing.
- BCE-PR-D's Dividend Yield is comparable with the industry average which is at 5.16.
- Compared to an average S&P500 Dividend Yield of 1.81, BCE-PR-D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
- The dividend of BCE-PR-D has a limited annual growth rate of 4.82%.
- BCE-PR-D 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
- 43.52% of the earnings are spent on dividend by BCE-PR-D. This is a bit on the high side, but may be sustainable.
- BCE-PR-D's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
BCE INC - BCECN 4.45 PERP / BCE-PR-D.CA FAQ
What is the ChartMill fundamental rating of BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BCE-PR-D.CA.
What is the valuation status of BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for BCE INC - BCECN 4.45 PERP?
BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for BCE-PR-D stock?
The Earnings per Share (EPS) of BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) is expected to decline by -9.1% in the next year.
How sustainable is the dividend of BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) stock?
The dividend rating of BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) is 5 / 10 and the dividend payout ratio is 43.52%.