BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) Stock Fundamental Analysis
TSX:BCE-PR-Q - Toronto Stock Exchange - CA05534B5962 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BCE-PR-Q. BCE-PR-Q was compared to 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 does not seem to be growing, but still is valued expensively. 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.
BCE-PR-Q had a positive operating cash flow in the past year.
Each year in the past 5 years BCE-PR-Q has been profitable.
Each year in the past 5 years BCE-PR-Q had a positive operating cash flow.
1.2 Ratios
BCE-PR-Q has a worse Return On Assets (0.54%) than 80.00% of its industry peers.
BCE-PR-Q has a Return On Equity of 2.26%. This is amonst the worse of the industry: BCE-PR-Q underperforms 80.00% of its industry peers.
With a Return On Invested Capital value of 5.04%, 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 5.41%.
The last Return On Invested Capital (5.04%) for BCE-PR-Q 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
Looking at the Profit Margin, with a value of 1.61%, BCE-PR-Q is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE-PR-Q has declined.
BCE-PR-Q has a worse Operating Margin (22.74%) than 80.00% of its industry peers.
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 68.27% 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 | 22.74% | ||
| 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
BCE-PR-Q 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-Q has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE-PR-Q has more shares outstanding
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 0.60, 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 0.60. This is in the better half of the industry: BCE-PR-Q outperforms 76.67% of its industry peers.
The Debt to FCF ratio of BCE-PR-Q is 11.06, which is on the high side as it means it would take BCE-PR-Q, 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-Q is doing worse than 70.00% of the companies in the same industry.
A Debt/Equity ratio of 1.95 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 1.95 is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.12
WACC4.49%
2.3 Liquidity
BCE-PR-Q has a Current Ratio of 0.64. 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.
Looking at the Current ratio, with a value of 0.64, BCE-PR-Q is doing worse than 76.67% of the companies in the same industry.
BCE-PR-Q has a Quick Ratio of 0.64. 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.
The Quick ratio of BCE-PR-Q (0.61) is worse than 76.67% 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-Q 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-Q 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
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.
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
BCE-PR-Q is valuated reasonably with a Price/Earnings ratio of 8.13.
66.67% of the companies in the same industry are cheaper than BCE-PR-Q, based on the Price/Earnings ratio.
BCE-PR-Q's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 9.06, the valuation of BCE-PR-Q can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BCE-PR-Q is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
BCE-PR-Q is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-Q indicates a slightly more expensive valuation: BCE-PR-Q is more expensive than 70.00% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than BCE-PR-Q, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-Q's earnings are expected to decrease with -2.78% in the coming years.
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-Q is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.53, 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.
BCE-PR-Q's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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
898.21% of the earnings are spent on dividend by BCE-PR-Q. This is not a sustainable payout ratio.
BCE-PR-Q's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-Q (7/14/2025, 7:00:00 PM)
24.48
+0.06 (+0.25%)
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 Cap22.57B
Analysts53.64
Price Target28.07 (14.67%)
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 Years2
Div Non Decr Years10
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)1.93%
PT rev (3m)11.43%
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 | 8.13 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.93 | ||
| P/FCF | 6.37 | ||
| P/OCF | 2.97 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.01
EY12.3%
EPS(NY)2.7
Fwd EY11.04%
FCF(TTM)3.84
FCFY15.7%
OCF(TTM)8.24
OCFY33.66%
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 | 0.6 |
F-Score6
WACC4.49%
ROIC/WACC1.12
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%