BCE INC - BCECN 4.95 PERP (BCE-PR-D.CA) Stock Fundamental Analysis
TSX:BCE-PR-D - Toronto Stock Exchange - CA05534B6879 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BCE-PR-D. BCE-PR-D was compared to 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-D was profitable.
In the past year BCE-PR-D had a positive cash flow from operations.
In the past 5 years BCE-PR-D has always been profitable.
Each year in the past 5 years BCE-PR-D had a positive operating cash flow.
1.2 Ratios
BCE-PR-D has a Return On Assets (0.54%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.26%, BCE-PR-D is in line with its industry, outperforming 50.00% of the companies in the same industry.
BCE-PR-D has a Return On Invested Capital of 5.04%. This is comparable to the rest of the industry: BCE-PR-D outperforms 50.00% of its industry peers.
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 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-D 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
BCE-PR-D has a Profit Margin (1.61%) which is in line with its industry peers.
BCE-PR-D's Profit Margin has declined in the last couple of years.
BCE-PR-D has a Operating Margin (22.74%) which is in line with its industry peers.
BCE-PR-D's Operating Margin has been stable in the last couple of years.
BCE-PR-D has a Gross Margin (68.27%) which is comparable to the rest of the 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 | 22.74% | ||
| 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
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.
Compared to 5 years ago, BCE-PR-D has more shares outstanding
BCE-PR-D 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-D is in the distress zone and has some risk of bankruptcy.
BCE-PR-D's Altman-Z score of 0.53 is in line compared to the rest of the industry. BCE-PR-D outperforms 46.67% of its industry peers.
BCE-PR-D has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-D would need 11.06 years to pay back of all of its debts.
The Debt to FCF ratio of BCE-PR-D (11.06) is comparable to the rest of the industry.
BCE-PR-D has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE-PR-D has a Debt to Equity ratio (1.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC1.21
WACC4.15%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-D may have some problems paying its short term obligations.
BCE-PR-D has a Current ratio (0.64) which is in line with its industry peers.
BCE-PR-D has a Quick Ratio of 0.64. 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.
Looking at the Quick ratio, with a value of 0.61, BCE-PR-D is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
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 -2.27%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
Looking at the last year, BCE-PR-D shows a decrease in Revenue. The Revenue has decreased by -1.23% 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)-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
BCE-PR-D is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.91% yearly.
The Revenue is expected to grow by 1.89% on average over the next years.
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
BCE-PR-D is valuated cheaply with a Price/Earnings ratio of 6.08.
66.67% of the companies in the same industry are more expensive than BCE-PR-D, based on the Price/Earnings ratio.
BCE-PR-D's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 6.77, the valuation of BCE-PR-D can be described as very cheap.
66.67% of the companies in the same industry are more expensive than BCE-PR-D, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BCE-PR-D to the average of the S&P500 Index (21.76), we can say BCE-PR-D is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE-PR-D is valued a bit cheaper than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE-PR-D is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.76 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
BCE-PR-D'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
BCE-PR-D has a Yearly Dividend Yield of 6.98%, which is a nice return.
Compared to an average industry Dividend Yield of 6.60, BCE-PR-D pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, BCE-PR-D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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
898.21% of the earnings are spent on dividend by BCE-PR-D. This is not a sustainable payout ratio.
The dividend of BCE-PR-D 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-D (7/11/2025, 7:00:00 PM)
18.29
0 (0%)
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 Cap16.86B
Analysts53.64
Price Target20.51 (12.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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)5.29%
PT rev (3m)12.24%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.69 | ||
| P/FCF | 4.76 | ||
| P/OCF | 2.22 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.2 |
EPS(TTM)3.01
EY16.46%
EPS(NY)2.7
Fwd EY14.78%
FCF(TTM)3.84
FCFY21.02%
OCF(TTM)8.24
OCFY45.05%
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
WACC4.15%
ROIC/WACC1.21
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%