BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-Q - CA05534B5962
25.36 CAD
0 (0%)
BCE-PR-Q gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Q may be in some trouble as it scores bad on both profitability and health. BCE-PR-Q is quite expensive at the moment. It does show a decent growth rate. Finally BCE-PR-Q also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BCE-PR-Q had positive earnings in the past year.
- In the past year BCE-PR-Q had a positive cash flow from operations.
- Each year in the past 5 years BCE-PR-Q has been profitable.
- BCE-PR-Q had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCE-PR-Q has a Return On Assets of 7.85%. This is in the lower half of the industry: BCE-PR-Q underperforms 63.33% of its industry peers.
- The Return On Equity of BCE-PR-Q (27.48%) is worse than 70.00% of its industry peers.
- With a Return On Invested Capital value of 4.52%, BCE-PR-Q is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for BCE-PR-Q 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-Q has a Profit Margin of 25.21%. This is in the lower half of the industry: BCE-PR-Q underperforms 63.33% of its industry peers.
- BCE-PR-Q's Profit Margin has declined in the last couple of years.
- BCE-PR-Q has a worse Operating Margin (22.38%) than 76.67% of its industry peers.
- BCE-PR-Q's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 67.92%, BCE-PR-Q is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- BCE-PR-Q'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-Q is creating some value.
- Compared to 1 year ago, BCE-PR-Q has about the same amount of shares outstanding.
- The number of shares outstanding for BCE-PR-Q has been increased compared to 5 years ago.
- The debt/assets ratio for BCE-PR-Q is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.64, we must say that BCE-PR-Q is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.64, BCE-PR-Q belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- BCE-PR-Q has a debt to FCF ratio of 10.36. This is a negative value and a sign of low solvency as BCE-PR-Q would need 10.36 years to pay back of all of its debts.
- BCE-PR-Q has a Debt to FCF ratio of 10.36. This is in the lower half of the industry: BCE-PR-Q underperforms 76.67% of its industry peers.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE-PR-Q has dependencies on debt financing.
- BCE-PR-Q has a worse Debt to Equity ratio (1.57) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.98
WACC4.62%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE-PR-Q may have some problems paying its short term obligations.
- BCE-PR-Q's Current ratio of 0.58 is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 80.00% of its industry peers.
- BCE-PR-Q has a Quick Ratio of 0.58. This is a bad value and indicates that BCE-PR-Q is not financially healthy enough and could expect problems in meeting its short term obligations.
- BCE-PR-Q's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 80.00% 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-Q 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.
- Looking at the last year, BCE-PR-Q shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
- The Revenue has been growing slightly by 0.51% on average over the past years.
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
- Based on estimates for the next years, BCE-PR-Q will show a small growth in Earnings Per Share. The EPS will grow by 0.73% on average per year.
- Based on estimates for the next years, BCE-PR-Q will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
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
- 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
- Based on the Price/Earnings ratio of 8.74, the valuation of BCE-PR-Q can be described as reasonable.
- Based on the Price/Earnings ratio, BCE-PR-Q is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, BCE-PR-Q is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.37, the valuation of BCE-PR-Q can be described as very reasonable.
- 70.00% of the companies in the same industry are cheaper than BCE-PR-Q, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BCE-PR-Q to the average of the S&P500 Index (25.83), we can say BCE-PR-Q is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
- BCE-PR-Q's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BCE-PR-Q is more expensive than 70.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE-PR-Q is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BCE-PR-Q'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-Q is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.16, BCE-PR-Q pays a better dividend. On top of this BCE-PR-Q pays more dividend than 93.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BCE-PR-Q pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
- The dividend of BCE-PR-Q has a limited annual growth rate of 4.82%.
- BCE-PR-Q has been paying a dividend for at least 10 years, so it has a reliable track record.
- BCE-PR-Q has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
- 43.52% of the earnings are spent on dividend by BCE-PR-Q. This is a bit on the high side, but may be sustainable.
- BCE-PR-Q'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 6.538 PERP / BCE-PR-Q.CA FAQ
What is the ChartMill fundamental rating of BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BCE-PR-Q.CA.
Can you provide the valuation status for BCE INC - BCECN 6.538 PERP?
ChartMill assigns a valuation rating of 3 / 10 to BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA). This can be considered as Overvalued.
Can you provide the profitability details for BCE INC - BCECN 6.538 PERP?
BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for BCE-PR-Q stock?
The Price/Earnings (PE) ratio for BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) is 8.74 and the Price/Book (PB) ratio is 1.05.
What is the earnings growth outlook for BCE INC - BCECN 6.538 PERP?
The Earnings per Share (EPS) of BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) is expected to decline by -9.1% in the next year.