BCE INC - BCECN 4.45 PERP (BCE-PR-S.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-S - CA05534B8693
20.6 CAD
+0.05 (+0.24%)
We assign a fundamental rating of 5 out of 10 to BCE-PR-S. BCE-PR-S was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-S scores excellent on profitability, but there are concerns on its financial health. BCE-PR-S may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- BCE-PR-S had positive earnings in the past year.
- BCE-PR-S had a positive operating cash flow in the past year.
- BCE-PR-S had positive earnings in each of the past 5 years.
- In the past 5 years BCE-PR-S always reported a positive cash flow from operatings.
1.2 Ratios
- BCE-PR-S's Return On Assets of 7.85% is amongst the best of the industry. BCE-PR-S outperforms 86.67% of its industry peers.
- BCE-PR-S's Return On Equity of 27.48% is fine compared to the rest of the industry. BCE-PR-S outperforms 80.00% of its industry peers.
- BCE-PR-S has a better Return On Invested Capital (4.52%) than 70.00% of its industry peers.
- BCE-PR-S had an Average Return On Invested Capital over the past 3 years of 4.90%. This 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
- With an excellent Profit Margin value of 25.21%, BCE-PR-S belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of BCE-PR-S has declined.
- BCE-PR-S has a better Operating Margin (22.38%) than 73.33% of its industry peers.
- BCE-PR-S's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BCE-PR-S (67.92%) is better than 76.67% of its industry peers.
- BCE-PR-S'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
- 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.
- BCE-PR-S has a worse debt/assets ratio than last year.
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's Altman-Z score of 0.60 is on the low side compared to the rest of the industry. BCE-PR-S is outperformed by 63.33% 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's Debt to FCF ratio of 10.36 is fine compared to the rest of the industry. BCE-PR-S outperforms 73.33% of its industry peers.
- BCE-PR-S has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- BCE-PR-S's Debt to Equity ratio of 1.57 is fine compared to the rest of the industry. BCE-PR-S outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.04
WACC4.35%
2.3 Liquidity
- BCE-PR-S has a Current Ratio of 0.58. This is a bad value and indicates that BCE-PR-S is not financially healthy enough and could expect problems in meeting its short term obligations.
- BCE-PR-S has a better Current ratio (0.58) than 70.00% of its industry peers.
- BCE-PR-S has a Quick Ratio of 0.58. This is a bad value and indicates that BCE-PR-S is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.55, BCE-PR-S is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- BCE-PR-S shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
- Measured over the past years, BCE-PR-S shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
- 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
- BCE-PR-S 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- BCE-PR-S is valuated cheaply with a Price/Earnings ratio of 7.10.
- BCE-PR-S's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-S is cheaper than 86.67% of the companies in the same industry.
- BCE-PR-S is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.57, the valuation of BCE-PR-S can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BCE-PR-S is valued cheaper than 83.33% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. BCE-PR-S is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than BCE-PR-S, based on the Enterprise Value to EBITDA ratio.
- 83.33% of the companies in the same industry are more expensive than BCE-PR-S, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
- The decent profitability rating of BCE-PR-S may justify a higher PE ratio.
- A cheap valuation may be justified as BCE-PR-S's earnings are expected to decrease with -3.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.19%, BCE-PR-S is a good candidate for dividend investing.
- BCE-PR-S's Dividend Yield is comparable with the industry average which is at 4.50.
- 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 | 5.19% |
5.2 History
- The dividend of BCE-PR-S has a limited annual growth rate of 4.82%.
- BCE-PR-S has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 43.52% of the earnings are spent on dividend by BCE-PR-S. This is a bit on the high side, but may be sustainable.
- The dividend of BCE-PR-S is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
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 7.1 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.