BCE INC - BCECN 4.45 PERP (BCE-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-E - CA05534B7521
20.66 CAD
+0.06 (+0.29%)
Overall BCE-PR-E gets a fundamental rating of 5 out of 10. We evaluated BCE-PR-E 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- BCE-PR-E had positive earnings in the past year.
- 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.
- Each year in the past 5 years BCE-PR-E had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BCE-PR-E (7.85%) is better than 80.00% of its industry peers.
- Looking at the Return On Equity, with a value of 27.48%, BCE-PR-E is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- BCE-PR-E has a Return On Invested Capital of 4.52%. This is in the better half of the industry: BCE-PR-E outperforms 63.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BCE-PR-E 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 80.00% of its industry peers.
- In the last couple of years the Profit Margin of BCE-PR-E has declined.
- BCE-PR-E's Operating Margin of 22.38% is fine compared to the rest of the industry. BCE-PR-E outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of BCE-PR-E has remained more or less at the same level.
- BCE-PR-E has a Gross Margin of 67.92%. This is in the better half of the industry: BCE-PR-E outperforms 70.00% of its industry peers.
- In the last couple of years the Gross Margin of BCE-PR-E 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-E is creating some value.
- BCE-PR-E has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BCE-PR-E has been increased compared to 5 years ago.
- The debt/assets ratio for BCE-PR-E is higher compared to a year ago.
2.2 Solvency
- BCE-PR-E has an Altman-Z score of 0.60. This is a bad value and indicates that BCE-PR-E is not financially healthy and even has some risk of bankruptcy.
- BCE-PR-E's Altman-Z score of 0.60 is on the low side compared to the rest of the industry. BCE-PR-E is outperformed by 63.33% of its industry peers.
- BCE-PR-E has a debt to FCF ratio of 10.36. This is a negative value and a sign of low solvency as BCE-PR-E would need 10.36 years to pay back of 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 66.67% of the companies in the same industry.
- BCE-PR-E has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- BCE-PR-E has a Debt to Equity ratio of 1.57. This is in the better half of the industry: BCE-PR-E outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.04
WACC4.36%
2.3 Liquidity
- BCE-PR-E has a Current Ratio of 0.58. This is a bad value and indicates that BCE-PR-E is not financially healthy enough and could expect problems in meeting its short term obligations.
- BCE-PR-E's Current ratio of 0.58 is fine compared to the rest of the industry. BCE-PR-E outperforms 63.33% of its industry peers.
- BCE-PR-E has a Quick Ratio of 0.58. This is a bad value and indicates that BCE-PR-E is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 0.55, BCE-PR-E is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| 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.
- BCE-PR-E shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
- 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.
- The Revenue is expected to grow by 1.65% on average over the next years.
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
- Based on the Price/Earnings ratio of 7.12, the valuation of BCE-PR-E can be described as very cheap.
- Based on the Price/Earnings ratio, BCE-PR-E is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BCE-PR-E to the average of the S&P500 Index (28.60), we can say BCE-PR-E is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.63, the valuation of BCE-PR-E can be described as very cheap.
- BCE-PR-E's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCE-PR-E is cheaper than 73.33% of the companies in the same industry.
- BCE-PR-E's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.63 |
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 73.33% of the companies are valued more expensively.
- 76.67% of the companies in the same industry are more expensive than BCE-PR-E, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.87 | ||
| 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
- With a Yearly Dividend Yield of 6.15%, BCE-PR-E is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.16, BCE-PR-E has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BCE-PR-E pays a better dividend.
| 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
- 43.52% of the earnings are spent on dividend by BCE-PR-E. This is a bit on the high side, but may be sustainable.
- BCE-PR-E'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-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%.