BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-S - CA05534B8693
20.75 CAD
+0.15 (+0.73%)
Overall BCE-PR-S gets a fundamental rating of 5 out of 10. We evaluated BCE-PR-S against 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-S belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BCE-PR-S.
1. Profitability
1.1 Basic Checks
- In the past year BCE-PR-S was profitable.
- In the past year BCE-PR-S had a positive cash flow from operations.
- In the past 5 years BCE-PR-S has always been profitable.
- Each year in the past 5 years BCE-PR-S had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BCE-PR-S (7.85%) is better than 90.00% of its industry peers.
- The Return On Equity of BCE-PR-S (27.48%) is better than 83.33% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, BCE-PR-S is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-S 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-S's Profit Margin of 25.21% is amongst the best of the industry. BCE-PR-S outperforms 90.00% of its industry peers.
- BCE-PR-S's Profit Margin has declined in the last couple of years.
- BCE-PR-S has a Operating Margin of 22.38%. This is in the better half of the industry: BCE-PR-S outperforms 76.67% of its industry peers.
- In the last couple of years the Operating Margin of BCE-PR-S has remained more or less at the same level.
- The Gross Margin of BCE-PR-S (67.92%) is better than 80.00% of its industry peers.
- In the last couple of years the Gross Margin of BCE-PR-S 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
- BCE-PR-S has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, BCE-PR-S has about the same amount of shares outstanding.
- The number of shares outstanding for BCE-PR-S has been increased compared to 5 years ago.
- Compared to 1 year ago, BCE-PR-S has a worse debt to assets ratio.
2.2 Solvency
- BCE-PR-S has an Altman-Z score of 0.60. This is a bad value and indicates that BCE-PR-S is not financially healthy and even has some risk of bankruptcy.
- BCE-PR-S has a worse Altman-Z score (0.60) than 73.33% of its industry peers.
- The Debt to FCF ratio of BCE-PR-S is 10.36, which is on the high side as it means it would take BCE-PR-S, 10.36 years of fcf income to pay off all of its debts.
- BCE-PR-S has a Debt to FCF ratio of 10.36. This is in the better half of the industry: BCE-PR-S outperforms 76.67% of its industry peers.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE-PR-S has dependencies on debt financing.
- BCE-PR-S has a better Debt to Equity ratio (1.57) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.04
WACC4.36%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE-PR-S may have some problems paying its short term obligations.
- BCE-PR-S has a better Current ratio (0.58) than 73.33% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE-PR-S may have some problems paying its short term obligations.
- The Quick ratio of BCE-PR-S (0.55) is better than 73.33% 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-S 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.
- The Revenue has been growing slightly by 0.11% in the past year.
- BCE-PR-S 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
- Based on estimates for the next years, BCE-PR-S 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-S 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 7.16, the valuation of BCE-PR-S can be described as very cheap.
- Based on the Price/Earnings ratio, BCE-PR-S is valued cheaper than 90.00% of the companies in the same industry.
- BCE-PR-S is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- BCE-PR-S is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE-PR-S indicates a rather cheap valuation: BCE-PR-S is cheaper than 83.33% of the companies listed in the same industry.
- BCE-PR-S is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
- BCE-PR-S's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BCE-PR-S is cheaper than 83.33% of the companies in the same industry.
- BCE-PR-S's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BCE-PR-S is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.89 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
- BCE-PR-S has a very decent profitability rating, which may justify a higher PE ratio.
- BCE-PR-S's earnings are expected to decrease with -3.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- BCE-PR-S has a Yearly Dividend Yield of 6.15%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.16, BCE-PR-S is paying slightly less dividend.
- BCE-PR-S'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-S has a limited annual growth rate of 4.82%.
- BCE-PR-S 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
- BCE-PR-S pays out 43.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
- BCE-PR-S'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 4.45 PERP / BCE-PR-S.CA FAQ
Can you provide the ChartMill fundamental rating for BCE INC - BCECN 4.45 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to BCE-PR-S.CA.
What is the valuation status for BCE-PR-S stock?
ChartMill assigns a valuation rating of 8 / 10 to BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA). This can be considered as Undervalued.
Can you provide the profitability details for BCE INC - BCECN 4.45 PERP?
BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA) has a profitability rating of 7 / 10.
What is the valuation of BCE INC - BCECN 4.45 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA) is 7.16 and the Price/Book (PB) ratio is 0.86.
Can you provide the financial health for BCE-PR-S stock?
The financial health rating of BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA) is 3 / 10.