BCE INC - BCECN 4.95 PERP (BCE-PR-Y.CA) Stock Fundamental Analysis
TSX:BCE-PR-Y - Toronto Stock Exchange - CA05534B8511 - Currency: CAD
Taking everything into account, BCE-PR-Y scores 5 out of 10 in our fundamental rating. BCE-PR-Y was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Y has an excellent profitability rating, but there are concerns on its financial health. BCE-PR-Y has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-Y was profitable.
In the past year BCE-PR-Y had a positive cash flow from operations.
In the past 5 years BCE-PR-Y has always been profitable.
BCE-PR-Y had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BCE-PR-Y (0.54%) is better than 70.00% of its industry peers.
BCE-PR-Y has a Return On Equity of 2.26%. This is in the better half of the industry: BCE-PR-Y outperforms 70.00% of its industry peers.
BCE-PR-Y has a better Return On Invested Capital (5.04%) than 70.00% of its industry peers.
BCE-PR-Y had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-Y is below the current ROIC(5.04%), indicating increased profibility in the last year.
| 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-Y is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE-PR-Y has declined.
BCE-PR-Y has a better Operating Margin (22.74%) than 70.00% of its industry peers.
BCE-PR-Y's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 68.27%, BCE-PR-Y is doing good in the industry, outperforming 76.67% of the companies in the same industry.
BCE-PR-Y's Gross Margin has been stable in the last couple of years.
| 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-Y has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BCE-PR-Y remains at a similar level compared to 1 year ago.
BCE-PR-Y has more shares outstanding than it did 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 0.53. This is a bad value and indicates that BCE-PR-Y is not financially healthy and even has some risk of bankruptcy.
BCE-PR-Y's Altman-Z score of 0.53 is on the low side compared to the rest of the industry. BCE-PR-Y is outperformed by 73.33% of its industry peers.
BCE-PR-Y has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-Y would need 11.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 11.06, BCE-PR-Y is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE-PR-Y has dependencies on debt financing.
BCE-PR-Y's Debt to Equity ratio of 1.95 is fine compared to the rest of the industry. BCE-PR-Y outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.82
WACC6.11%
2.3 Liquidity
BCE-PR-Y has a Current Ratio of 0.64. This is a bad value and indicates that BCE-PR-Y is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BCE-PR-Y (0.64) is better than 73.33% of its industry peers.
BCE-PR-Y has a Quick Ratio of 0.64. This is a bad value and indicates that BCE-PR-Y is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-Y has a better Quick ratio (0.61) than 73.33% 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-Y have decreased by -2.27% in the last year.
Measured over the past years, BCE-PR-Y shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-Y shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
Measured over the past years, BCE-PR-Y shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
BCE-PR-Y is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.91% yearly.
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
A Price/Earnings ratio of 5.98 indicates a rather cheap valuation of BCE-PR-Y.
BCE-PR-Y's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-Y is cheaper than 86.67% of the companies in the same industry.
BCE-PR-Y's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 6.65 indicates a rather cheap valuation of BCE-PR-Y.
BCE-PR-Y's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCE-PR-Y is cheaper than 86.67% of the companies in the same industry.
BCE-PR-Y is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE-PR-Y is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BCE-PR-Y is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.68 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
BCE-PR-Y has a very decent profitability rating, which may justify a higher PE ratio.
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 6.62%, BCE-PR-Y is a good candidate for dividend investing.
BCE-PR-Y's Dividend Yield is comparable with the industry average which is at 6.33.
BCE-PR-Y's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
898.21% of the earnings are spent on dividend by BCE-PR-Y. This is not a sustainable payout ratio.
The dividend of BCE-PR-Y is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-Y (6/27/2025, 7:00:00 PM)
17.99
-0.02 (-0.11%)
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 Cap16.58B
Analysts52.73
Price Target20.47 (13.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years0
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)5.05%
PT rev (3m)12.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.68 | ||
| P/FCF | 4.68 | ||
| P/OCF | 2.18 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.17 |
EPS(TTM)3.01
EY16.73%
EPS(NY)2.7
Fwd EY15.03%
FCF(TTM)3.84
FCFY21.37%
OCF(TTM)8.24
OCFY45.8%
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 | 0.53 |
F-Score6
WACC6.11%
ROIC/WACC0.82
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%