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%)
BCE-PR-D gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-D scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BCE-PR-D.
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.
- 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 amongst the best in the industry. BCE-PR-D outperforms 86.67% of its industry peers.
- The Return On Equity of BCE-PR-D (27.48%) is better than 80.00% of its industry peers.
- BCE-PR-D has a Return On Invested Capital of 4.52%. This is in the better half of the industry: BCE-PR-D outperforms 70.00% of its industry peers.
- 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
- With an excellent Profit Margin value of 25.21%, BCE-PR-D belongs to the best 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.
- With a decent Operating Margin value of 22.38%, BCE-PR-D is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- BCE-PR-D's Operating Margin has been stable in the last couple of years.
- BCE-PR-D has a Gross Margin of 67.92%. This is in the better half of the industry: BCE-PR-D outperforms 76.67% of its industry peers.
- BCE-PR-D's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- The debt/assets ratio for BCE-PR-D is higher compared to a year ago.
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.
- BCE-PR-D has a Altman-Z score of 0.60. This is in the lower half of the industry: BCE-PR-D underperforms 70.00% of its industry peers.
- 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 better Debt to FCF ratio (10.36) than 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.
- BCE-PR-D has a Debt to Equity ratio of 1.57. This is in the better half of the industry: BCE-PR-D outperforms 80.00% 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 of 0.58. This is in the better half of the industry: BCE-PR-D outperforms 70.00% of its industry peers.
- 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.
- BCE-PR-D has a Quick ratio of 0.55. This is in the better half of the industry: BCE-PR-D outperforms 70.00% of its industry peers.
| 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.
- BCE-PR-D shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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
- Based on estimates for the next years, BCE-PR-D will show a small growth in Earnings Per Share. The EPS will grow by 0.73% on average per year.
- Based on estimates for the next years, BCE-PR-D will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
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
- Based on the 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.
- The average S&P500 Price/Earnings ratio is at 27.21. BCE-PR-D is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.58, which indicates a rather cheap valuation of BCE-PR-D.
- 86.67% of the companies in the same industry are more expensive than BCE-PR-D, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BCE-PR-D is valued rather cheaply when compared to this.
| 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 80.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE-PR-D is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| 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
- BCE-PR-D has a Yearly Dividend Yield of 6.15%, which is a nice return.
- BCE-PR-D's Dividend Yield is comparable with the industry average which is at 5.16.
- BCE-PR-D's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 5 / 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 8 / 10 to BCE INC - BCECN 4.45 PERP (BCE-PR-D.CA). This can be considered as Undervalued.
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 7 / 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%.