BCE INC - BCECN 4.95 PERP (BCE-PR-J.CA) Stock Fundamental Analysis
TSX:BCE-PR-J - Toronto Stock Exchange - CA05534B6531 - Currency: CAD
BCE-PR-J 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-J scores excellent on profitability, but there are concerns on its financial health. BCE-PR-J has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-J was profitable.
BCE-PR-J had a positive operating cash flow in the past year.
BCE-PR-J had positive earnings in each of the past 5 years.
BCE-PR-J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, BCE-PR-J is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BCE-PR-J has a better Return On Equity (2.26%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 5.04%, BCE-PR-J is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BCE-PR-J is in line with the industry average of 5.41%.
The last Return On Invested Capital (5.04%) for BCE-PR-J is above the 3 year average (4.90%), which is a sign of increasing profitability.
| 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-J has a Profit Margin of 1.61%. This is in the better half of the industry: BCE-PR-J outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-J has declined.
BCE-PR-J has a Operating Margin of 22.74%. This is in the better half of the industry: BCE-PR-J outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-J has remained more or less at the same level.
BCE-PR-J's Gross Margin of 68.27% is fine compared to the rest of the industry. BCE-PR-J outperforms 73.33% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-J 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-J is creating some value.
The number of shares outstanding for BCE-PR-J remains at a similar level compared to 1 year ago.
BCE-PR-J has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE-PR-J has a worse debt to assets ratio.
2.2 Solvency
BCE-PR-J has an Altman-Z score of 0.53. This is a bad value and indicates that BCE-PR-J is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-J (0.53) is worse than 66.67% of its industry peers.
The Debt to FCF ratio of BCE-PR-J is 11.06, which is on the high side as it means it would take BCE-PR-J, 11.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.06, BCE-PR-J is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
BCE-PR-J has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE-PR-J has a better Debt to Equity ratio (1.95) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC1.22
WACC4.14%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-J may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, BCE-PR-J is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that BCE-PR-J may have some problems paying its short term obligations.
BCE-PR-J has a better Quick ratio (0.61) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-J have decreased by -2.27% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
Looking at the last year, BCE-PR-J shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.91% on average over the next years.
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
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
The Price/Earnings ratio is 6.05, which indicates a rather cheap valuation of BCE-PR-J.
BCE-PR-J's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-J is cheaper than 83.33% of the companies in the same industry.
BCE-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 6.73, which indicates a rather cheap valuation of BCE-PR-J.
Based on the Price/Forward Earnings ratio, BCE-PR-J is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE-PR-J to the average of the S&P500 Index (35.19), we can say BCE-PR-J is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 6.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE-PR-J is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
BCE-PR-J's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE-PR-J is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
The decent profitability rating of BCE-PR-J may justify a higher PE ratio.
BCE-PR-J'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
With a Yearly Dividend Yield of 6.91%, BCE-PR-J is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.53, BCE-PR-J has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, BCE-PR-J pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of BCE-PR-J has a limited annual growth rate of 4.82%.
BCE-PR-J 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-J pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-J 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-J (7/11/2025, 7:00:00 PM)
18.2
-0.04 (-0.22%)
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 Cap16.78B
Analysts53.64
Price Target19.85 (9.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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)0%
PT rev (3m)8.21%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.78%
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 | 6.05 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.69 | ||
| P/FCF | 4.73 | ||
| P/OCF | 2.21 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.19 |
EPS(TTM)3.01
EY16.54%
EPS(NY)2.7
Fwd EY14.85%
FCF(TTM)3.84
FCFY21.12%
OCF(TTM)8.24
OCFY45.27%
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
WACC4.14%
ROIC/WACC1.22
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%