BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-E - CA05534B7521
20.61 CAD
0 (0%)
BCE-PR-E gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-E has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE-PR-E 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-E was profitable.
- In the past year BCE-PR-E had a positive cash flow from operations.
- BCE-PR-E had positive earnings in each of the past 5 years.
- In the past 5 years BCE-PR-E always reported a positive cash flow from operatings.
1.2 Ratios
- BCE-PR-E's Return On Assets of 7.85% is fine compared to the rest of the industry. BCE-PR-E outperforms 76.67% of its industry peers.
- The Return On Equity of BCE-PR-E (27.48%) is better than 70.00% of its industry peers.
- BCE-PR-E's Return On Invested Capital of 4.52% is in line compared to the rest of the industry. BCE-PR-E outperforms 60.00% of its industry peers.
- BCE-PR-E had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.00%.
| 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
- BCE-PR-E's Profit Margin of 25.21% is fine compared to the rest of the industry. BCE-PR-E outperforms 76.67% of its industry peers.
- BCE-PR-E's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 22.38%, BCE-PR-E is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- BCE-PR-E's Operating Margin has been stable in the last couple of years.
- BCE-PR-E has a better Gross Margin (67.92%) than 66.67% of its industry peers.
- BCE-PR-E'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-E is still creating some value.
- Compared to 1 year ago, BCE-PR-E has about the same amount of shares outstanding.
- The number of shares outstanding for BCE-PR-E has been increased compared to 5 years ago.
- Compared to 1 year ago, BCE-PR-E 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-E 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-E is doing worse than 60.00% of the companies in the same industry.
- The Debt to FCF ratio of BCE-PR-E is 10.36, which is on the high side as it means it would take BCE-PR-E, 10.36 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 10.36, BCE-PR-E is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE-PR-E has dependencies on debt financing.
- The Debt to Equity ratio of BCE-PR-E (1.57) is better than 70.00% 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-E may have some problems paying its short term obligations.
- BCE-PR-E's Current ratio of 0.58 is in line compared to the rest of the industry. BCE-PR-E outperforms 60.00% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE-PR-E may have some problems paying its short term obligations.
- BCE-PR-E's Quick ratio of 0.55 is in line compared to the rest of the industry. BCE-PR-E outperforms 60.00% 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-E have decreased by -3.65% in the last year.
- The Earnings Per Share has been decreasing by -2.78% on average over the past years.
- The Revenue has been growing slightly by 0.11% in the past year.
- Measured over the past years, BCE-PR-E 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
- BCE-PR-E 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-E 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.
- 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 7.11, which indicates a rather cheap valuation of BCE-PR-E.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-E indicates a somewhat cheap valuation: BCE-PR-E is cheaper than 76.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BCE-PR-E is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.61, which indicates a rather cheap valuation of BCE-PR-E.
- BCE-PR-E's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCE-PR-E is cheaper than 76.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BCE-PR-E is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BCE-PR-E is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, BCE-PR-E is valued a bit cheaper than 73.33% 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-E may justify a higher PE ratio.
- A cheap valuation may be justified as BCE-PR-E'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-E has a Yearly Dividend Yield of 6.15%, which is a nice return.
- BCE-PR-E's Dividend Yield is comparable with the industry average which is at 5.16.
- BCE-PR-E'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-E has a limited annual growth rate of 4.82%.
- BCE-PR-E 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-E pays out 43.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of BCE-PR-E is growing, but the earnings are growing slower. 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-E.CA FAQ
Can you provide the ChartMill fundamental rating for BCE INC - BCECN 4.45 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to BCE-PR-E.CA.
What is the valuation status for BCE-PR-E stock?
ChartMill assigns a valuation rating of 6 / 10 to BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA). This can be considered as Fairly Valued.
How profitable is BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) stock?
BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) has a profitability rating of 6 / 10.
How financially healthy is BCE INC - BCECN 4.45 PERP?
The financial health rating of BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) is 2 / 10.
Is the dividend of BCE INC - BCECN 4.45 PERP sustainable?
The dividend rating of BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) is 5 / 10 and the dividend payout ratio is 43.52%.