BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-Q - CA05534B5962
25.42 CAD
-0.1 (-0.39%)
Taking everything into account, BCE-PR-Q scores 3 out of 10 in our fundamental rating. BCE-PR-Q was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Q has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- In the past 5 years BCE-PR-Q has always been profitable.
- BCE-PR-Q had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 7.85%, BCE-PR-Q is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 27.48%, BCE-PR-Q is doing worse than 70.00% of the companies in the same industry.
- BCE-PR-Q has a worse Return On Invested Capital (4.52%) than 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-Q 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
- 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.
- In the last couple of years the Profit Margin of BCE-PR-Q has declined.
- Looking at the Operating Margin, with a value of 22.38%, BCE-PR-Q is doing worse than 76.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of BCE-PR-Q has remained more or less at the same level.
- BCE-PR-Q's Gross Margin of 67.92% is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 73.33% of its industry peers.
- In the last couple of years the Gross Margin of BCE-PR-Q 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-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.
- BCE-PR-Q has a worse debt/assets ratio than last year.
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.
- BCE-PR-Q has a Altman-Z score of 0.64. This is in the better half of the industry: BCE-PR-Q outperforms 80.00% of its industry peers.
- The Debt to FCF ratio of BCE-PR-Q is 10.36, which is on the high side as it means it would take BCE-PR-Q, 10.36 years of fcf income to pay off all of its debts.
- BCE-PR-Q has a worse Debt to FCF ratio (10.36) than 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's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 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
- BCE-PR-Q has a Current 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 has a worse Current ratio (0.58) than 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.
- With a Quick ratio value of 0.55, BCE-PR-Q is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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.
- BCE-PR-Q shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- The Revenue has been growing slightly by 0.11% in the past year.
- Measured over the past years, BCE-PR-Q 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-Q 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-9.15%
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 8.77, which indicates a very decent valuation of BCE-PR-Q.
- 66.67% of the companies in the same industry are cheaper than BCE-PR-Q, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. BCE-PR-Q is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.35, 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.
- BCE-PR-Q's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BCE-PR-Q is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, BCE-PR-Q is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
- BCE-PR-Q'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-Q has a Yearly Dividend Yield of 5.19%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.50, BCE-PR-Q pays a better dividend. On top of this BCE-PR-Q pays more dividend than 86.67% of the companies listed in the same industry.
- BCE-PR-Q's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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
- BCE-PR-Q pays out 43.52% of its income as dividend. 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-5.41%
EPS Next 3Y-3.3%
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 8.77 and the Price/Book (PB) ratio is 1.06.
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 -9.15% in the next year.