BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-J - CA05534B6531
20.6 CAD
-0.25 (-1.2%)
Taking everything into account, BCE-PR-J scores 4 out of 10 in our fundamental rating. BCE-PR-J was compared to 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BCE-PR-J while its profitability can be described as average. BCE-PR-J is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- BCE-PR-J had positive earnings in the past year.
- In the past year BCE-PR-J had a positive cash flow from operations.
- 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
- The Return On Assets of BCE-PR-J (7.85%) is better than 63.33% of its industry peers.
- Looking at the Return On Equity, with a value of 27.48%, BCE-PR-J is in line with its industry, outperforming 56.67% of the companies in the same industry.
- BCE-PR-J has a Return On Invested Capital (4.52%) which is comparable to the rest of the industry.
- BCE-PR-J had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.01%.
| 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 a decent Profit Margin value of 25.21%, BCE-PR-J is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of BCE-PR-J has declined.
- BCE-PR-J has a Operating Margin (22.38%) which is comparable to the rest of the industry.
- BCE-PR-J's Operating Margin has been stable in the last couple of years.
- BCE-PR-J's Gross Margin of 67.92% is in line compared to the rest of the industry. BCE-PR-J outperforms 53.33% of its industry peers.
- BCE-PR-J'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
- BCE-PR-J has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BCE-PR-J has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BCE-PR-J has been increased compared to 5 years ago.
- BCE-PR-J has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.60, we must say that BCE-PR-J 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-J is in line with its industry, outperforming 53.33% of the companies in the same industry.
- The Debt to FCF ratio of BCE-PR-J is 10.36, which is on the high side as it means it would take BCE-PR-J, 10.36 years of fcf income to pay off all of its debts.
- BCE-PR-J's Debt to FCF ratio of 10.36 is in line compared to the rest of the industry. BCE-PR-J outperforms 50.00% of its industry peers.
- BCE-PR-J has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- BCE-PR-J has a Debt to Equity ratio (1.57) which is in line with 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-J may have some problems paying its short term obligations.
- With a Current ratio value of 0.58, BCE-PR-J perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- A Quick Ratio of 0.55 indicates that BCE-PR-J may have some problems paying its short term obligations.
- BCE-PR-J has a Quick ratio of 0.55. This is comparable to the rest of the industry: BCE-PR-J outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- BCE-PR-J shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
- BCE-PR-J shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- BCE-PR-J shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
- BCE-PR-J 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
- The Earnings Per Share is expected to grow by 0.73% on average over the next years.
- BCE-PR-J is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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
- The Price/Earnings ratio is 7.10, which indicates a rather cheap valuation of BCE-PR-J.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-J indicates a somewhat cheap valuation: BCE-PR-J is cheaper than 63.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BCE-PR-J is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of BCE-PR-J.
- BCE-PR-J's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, BCE-PR-J is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
- BCE-PR-J's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as BCE-PR-J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
- BCE-PR-J's earnings are expected to decrease with -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
- BCE-PR-J has a Yearly Dividend Yield of 6.15%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.50, BCE-PR-J has a dividend in line with its industry peers.
- BCE-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
- The dividend of BCE-PR-J has a limited annual growth rate of 4.82%.
- BCE-PR-J has been paying a dividend for at least 10 years, so it has 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-J. This is a bit on the high side, but may be sustainable.
- BCE-PR-J's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
BCE INC - BCECN 4.45 PERP / BCE-PR-J.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-J.CA.
Can you provide the valuation status for BCE INC - BCECN 4.45 PERP?
ChartMill assigns a valuation rating of 5 / 10 to BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA). This can be considered as Fairly Valued.
What is the profitability of BCE-PR-J stock?
BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) stock?
The Price/Earnings (PE) ratio for BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) is 7.1 and the Price/Book (PB) ratio is 0.86.
How sustainable is the dividend of BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) stock?
The dividend rating of BCE INC - BCECN 4.45 PERP (BCE-PR-J.CA) is 5 / 10 and the dividend payout ratio is 43.52%.