BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-D - CA05534B6879
20.62 CAD
+0.02 (+0.1%)
BCE-PR-D gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BCE-PR-D while its profitability can be described as average. BCE-PR-D is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BCE-PR-D was profitable.
- BCE-PR-D had a positive operating cash flow in the past year.
- BCE-PR-D had positive earnings in each of the past 5 years.
- BCE-PR-D had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCE-PR-D has a Return On Assets of 7.85%. This is in the better half of the industry: BCE-PR-D outperforms 73.33% of its industry peers.
- BCE-PR-D has a better Return On Equity (27.48%) than 66.67% of its industry peers.
- The Return On Invested Capital of BCE-PR-D (4.52%) is comparable to the rest of the industry.
- BCE-PR-D had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.01%.
| 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
- BCE-PR-D's Profit Margin of 25.21% is fine compared to the rest of the industry. BCE-PR-D outperforms 73.33% of its industry peers.
- In the last couple of years the Profit Margin of BCE-PR-D has declined.
- BCE-PR-D's Operating Margin of 22.38% is in line compared to the rest of the industry. BCE-PR-D outperforms 60.00% of its industry peers.
- BCE-PR-D's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BCE-PR-D (67.92%) is better than 63.33% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-D is creating some value.
- BCE-PR-D has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BCE-PR-D has been increased compared to 5 years ago.
- Compared to 1 year ago, BCE-PR-D has a worse debt to assets ratio.
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.
- With a Altman-Z score value of 0.60, BCE-PR-D perfoms like the industry average, outperforming 43.33% 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.
- Looking at the Debt to FCF ratio, with a value of 10.36, BCE-PR-D is in line with its industry, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE-PR-D has dependencies on debt financing.
- The Debt to Equity ratio of BCE-PR-D (1.57) is better than 66.67% of its industry peers.
| 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 Current ratio (0.58) which is comparable to the rest of the industry.
- BCE-PR-D has a Quick Ratio of 0.58. This is a bad value and indicates that BCE-PR-D is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BCE-PR-D (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- BCE-PR-D shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
- Measured over the past years, BCE-PR-D 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-D shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
- Measured over the past years, BCE-PR-D shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
- The Earnings Per Share is expected to grow by 0.73% on average over the next years.
- The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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
- A Price/Earnings ratio of 7.11 indicates a rather cheap valuation of BCE-PR-D.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-D indicates a somewhat cheap valuation: BCE-PR-D is cheaper than 73.33% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BCE-PR-D to the average of the S&P500 Index (27.21), we can say BCE-PR-D is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.58, the valuation of BCE-PR-D can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BCE-PR-D is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, BCE-PR-D is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| 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 66.67% of the companies are valued more expensively.
- BCE-PR-D's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE-PR-D is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | 5.64 |
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 -3.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.19%, 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 4.50.
- BCE-PR-D's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
5.2 History
- The dividend of BCE-PR-D has a limited annual growth rate of 4.82%.
- BCE-PR-D has been paying a dividend for at least 10 years, so it has 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.
- The dividend of BCE-PR-D is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
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 -9.15% 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%.