BCE INC - BCECN 5.2 PERP (BCE-PR-J.CA) Stock Fundamental Analysis
TSX:BCE-PR-J - Toronto Stock Exchange - CA05534B6531 - Currency: CAD
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. BCE-PR-J has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE-PR-J has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years BCE-PR-J 4 years were profitable.
BCE-PR-J had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BCE-PR-J has a Return On Assets (0.12%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 0.48%, BCE-PR-J is in line with its industry, outperforming 50.00% of the companies in the same industry.
BCE-PR-J has a Return On Invested Capital of 6.82%. This is comparable to the rest of the industry: BCE-PR-J outperforms 56.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-J is in line with the industry average of 6.94%.
The 3 year average ROIC (6.51%) for BCE-PR-J is below the current ROIC(6.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.48% | ||
| ROIC | 6.82% |
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
1.3 Margins
With a Profit Margin value of 0.34%, BCE-PR-J perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BCE-PR-J's Profit Margin has declined in the last couple of years.
BCE-PR-J has a Operating Margin (22.51%) which is comparable to the rest of the industry.
BCE-PR-J's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 68.47%, BCE-PR-J perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
BCE-PR-J's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.51% | ||
| PM (TTM) | 0.34% | ||
| GM | 68.47% |
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
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.
BCE-PR-J has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
BCE-PR-J has an Altman-Z score of 0.52. This is a bad value and indicates that BCE-PR-J is not financially healthy and even has some risk of bankruptcy.
BCE-PR-J's Altman-Z score of 0.52 is in line compared to the rest of the industry. BCE-PR-J outperforms 43.33% of its industry peers.
The Debt to FCF ratio of BCE-PR-J is 13.29, which is on the high side as it means it would take BCE-PR-J, 13.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BCE-PR-J (13.29) is better than 63.33% of its industry peers.
BCE-PR-J has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
BCE-PR-J has a Debt to Equity ratio (1.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Altman-Z | 0.52 |
ROIC/WACC1.4
WACC4.86%
2.3 Liquidity
A Current Ratio of 0.62 indicates that BCE-PR-J may have some problems paying its short term obligations.
BCE-PR-J has a Current ratio (0.62) which is in line with its industry peers.
BCE-PR-J has a Quick Ratio of 0.62. This is a bad value and indicates that BCE-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BCE-PR-J (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
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 -4.86%.
The Earnings Per Share has been decreasing by -2.69% on average over the past years.
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
3.2 Future
BCE-PR-J is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y-9.02%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
EPS Next 5Y10.84%
Revenue Next Year0.25%
Revenue Next 2Y1.32%
Revenue Next 3Y1.06%
Revenue Next 5Y4.14%
3.3 Evolution
The EPS 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
A Price/Earnings ratio of 5.64 indicates a rather cheap valuation of BCE-PR-J.
Based on the Price/Earnings ratio, BCE-PR-J is valued a bit cheaper than 70.00% 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 29.63.
With a Price/Forward Earnings ratio of 6.19, the valuation of BCE-PR-J can be described as very cheap.
Based on the Price/Forward Earnings ratio, BCE-PR-J is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
BCE-PR-J's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 6.19 |
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 66.67% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than BCE-PR-J, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 4.97 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-J's earnings are expected to decrease with -2.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
5. Dividend
5.1 Amount
BCE-PR-J has a Yearly Dividend Yield of 11.94%, which is a nice return.
BCE-PR-J's Dividend Yield is a higher than the industry average which is at 10.71.
Compared to an average S&P500 Dividend Yield of 2.27, BCE-PR-J pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.94% |
5.2 History
The dividend of BCE-PR-J has a limited annual growth rate of 5.05%.
BCE-PR-J has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-J has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.05%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
4482.14% of the earnings are spent on dividend by BCE-PR-J. 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.
DP4482.14%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
TSX:BCE-PR-J (2/21/2025, 7:00:00 PM)
17.2
-0.05 (-0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.69B
Analysts52.73
Price Target18.62 (8.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.94% |
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-3.58%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-3.58%
Max EPS beat(4)2.82%
EPS beat(8)3
Avg EPS beat(8)0.54%
EPS beat(12)7
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)-5.07%
PT rev (3m)0.15%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 6.19 | ||
| P/S | 0.64 | ||
| P/FCF | 5.2 | ||
| P/OCF | 2.08 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.97 |
EPS(TTM)3.05
EY17.73%
EPS(NY)2.78
Fwd EY16.15%
FCF(TTM)3.31
FCFY19.22%
OCF(TTM)8.26
OCFY48.01%
SpS26.81
BVpS19.38
TBVpS-10.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.48% | ||
| ROCE | 9.4% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 13.85% | ||
| OM | 22.51% | ||
| PM (TTM) | 0.34% | ||
| GM | 68.47% | ||
| FCFM | 12.33% |
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
ROICexc(3y)6.59%
ROICexc(5y)6.91%
ROICexgc(3y)12.01%
ROICexgc(5y)12.54%
ROCE(3y)9.27%
ROCE(5y)9.8%
ROICexcg growth 3Y-0.73%
ROICexcg growth 5Y-3.96%
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-3.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 89.57% | ||
| Cap/Sales | 18.47% | ||
| Interest Coverage | 3.25 | ||
| Cash Conversion | 71.41% | ||
| Profit Quality | 3590.48% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.52 |
F-Score6
WACC4.86%
ROIC/WACC1.4
Cap/Depr(3y)103.5%
Cap/Depr(5y)99.32%
Cap/Sales(3y)20.39%
Cap/Sales(5y)19.26%
Profit Quality(3y)126.35%
Profit Quality(5y)130.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
EPS Next Y-9.02%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
EPS Next 5Y10.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
Revenue Next Year0.25%
Revenue Next 2Y1.32%
Revenue Next 3Y1.06%
Revenue Next 5Y4.14%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.7%
FCF growth 1Y-14.34%
FCF growth 3Y-5.44%
FCF growth 5Y-2.5%
OCF growth 1Y-6.43%
OCF growth 3Y0.06%
OCF growth 5Y1.03%