BCE INC - BCECN 4.95 PERP (BCE-PR-Y.CA) Stock Fundamental Analysis
TSX:BCE-PR-Y - Toronto Stock Exchange - CA05534B8511 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BCE-PR-Y. BCE-PR-Y was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Y has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE-PR-Y has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-Y was profitable.
BCE-PR-Y had a positive operating cash flow in the past year.
In the past 5 years BCE-PR-Y has always been profitable.
In the past 5 years BCE-PR-Y always reported a positive cash flow from operatings.
1.2 Ratios
BCE-PR-Y's Return On Assets of 0.22% is in line compared to the rest of the industry. BCE-PR-Y outperforms 53.33% of its industry peers.
BCE-PR-Y has a Return On Equity (0.95%) which is comparable to the rest of the industry.
The Return On Invested Capital of BCE-PR-Y (5.18%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BCE-PR-Y is in line with the industry average of 5.52%.
The last Return On Invested Capital (5.18%) for BCE-PR-Y is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 5.18% |
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-Y's Profit Margin of 0.67% is in line compared to the rest of the industry. BCE-PR-Y outperforms 53.33% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-Y has declined.
With a Operating Margin value of 22.73%, BCE-PR-Y perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
BCE-PR-Y's Operating Margin has been stable in the last couple of years.
BCE-PR-Y has a Gross Margin (68.43%) which is comparable to the rest of the industry.
BCE-PR-Y's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE-PR-Y is still creating some value.
BCE-PR-Y has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE-PR-Y has been increased compared to 5 years ago.
BCE-PR-Y has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-Y has an Altman-Z score of 0.48. This is a bad value and indicates that BCE-PR-Y is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-Y (0.48) is comparable to the rest of the industry.
BCE-PR-Y has a debt to FCF ratio of 14.54. This is a negative value and a sign of low solvency as BCE-PR-Y would need 14.54 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 14.54, BCE-PR-Y is doing good in the industry, outperforming 63.33% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE-PR-Y has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.92, BCE-PR-Y is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.48 |
ROIC/WACC1.31
WACC3.95%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BCE-PR-Y may have some problems paying its short term obligations.
With a Current ratio value of 0.60, BCE-PR-Y perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that BCE-PR-Y may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, BCE-PR-Y is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-Y have decreased by -5.30% in the last year.
BCE-PR-Y shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
BCE-PR-Y shows a decrease in Revenue. In the last year, the revenue decreased by -1.07%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
BCE-PR-Y is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.71% yearly.
Based on estimates for the next years, BCE-PR-Y will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
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
The Price/Earnings ratio is 5.30, which indicates a rather cheap valuation of BCE-PR-Y.
Based on the Price/Earnings ratio, BCE-PR-Y is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
BCE-PR-Y's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 5.82, the valuation of BCE-PR-Y can be described as very cheap.
70.00% of the companies in the same industry are more expensive than BCE-PR-Y, based on the Price/Forward Earnings ratio.
BCE-PR-Y is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 5.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE-PR-Y is valued a bit cheaper than 66.67% of the companies in the same industry.
BCE-PR-Y's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE-PR-Y is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.33 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
BCE-PR-Y's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
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 13.09%, BCE-PR-Y is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.62, BCE-PR-Y pays a bit more dividend than its industry peers.
BCE-PR-Y's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
5.2 History
The dividend of BCE-PR-Y has a limited annual growth rate of 4.82%.
BCE-PR-Y has paid a dividend for at least 10 years, which is a reliable track record.
BCE-PR-Y has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
2331.29% of the earnings are spent on dividend by BCE-PR-Y. This is not a sustainable payout ratio.
BCE-PR-Y's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-Y (4/25/2025, 7:00:00 PM)
16.11
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.85B
Analysts50.91
Price Target18.24 (13.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)-0.14%
PT rev (3m)-7.88%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 5.82 | ||
| P/S | 0.61 | ||
| P/FCF | 5.33 | ||
| P/OCF | 2.06 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5 |
EPS(TTM)3.04
EY18.87%
EPS(NY)2.77
Fwd EY17.18%
FCF(TTM)3.02
FCFY18.75%
OCF(TTM)7.82
OCFY48.57%
SpS26.48
BVpS18.52
TBVpS-10.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 10.25% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
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-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.48 |
F-Score5
WACC3.95%
ROIC/WACC1.31
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%