BCE INC - BCECN 5.346 PERP (BCE-PR-Z.CA) Stock Fundamental Analysis
TSX:BCE-PR-Z - Toronto Stock Exchange - CA05534B8289 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BCE-PR-Z. BCE-PR-Z was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Z has a bad profitability rating. Also its financial health evaluation is rather negative. BCE-PR-Z has a valuation in line with the averages, but on the other hand it scores bad on growth. BCE-PR-Z also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE-PR-Z had positive earnings in the past year.
BCE-PR-Z had a positive operating cash flow in the past year.
Each year in the past 5 years BCE-PR-Z has been profitable.
BCE-PR-Z had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-Z has a Return On Assets of 0.22%. This is in the lower half of the industry: BCE-PR-Z underperforms 73.33% of its industry peers.
BCE-PR-Z's Return On Equity of 0.95% is on the low side compared to the rest of the industry. BCE-PR-Z is outperformed by 73.33% of its industry peers.
The Return On Invested Capital of BCE-PR-Z (5.18%) is worse than 70.00% of its industry peers.
BCE-PR-Z had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.52%.
The 3 year average ROIC (4.90%) for BCE-PR-Z is below the current ROIC(5.18%), indicating increased profibility in the last year.
| 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-Z has a Profit Margin of 0.67%. This is in the lower half of the industry: BCE-PR-Z underperforms 73.33% of its industry peers.
BCE-PR-Z's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 22.73%, BCE-PR-Z is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BCE-PR-Z has remained more or less at the same level.
BCE-PR-Z has a Gross Margin of 68.43%. This is in the lower half of the industry: BCE-PR-Z underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-Z has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-Z is creating some value.
The number of shares outstanding for BCE-PR-Z remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE-PR-Z has more shares outstanding
Compared to 1 year ago, BCE-PR-Z has a worse debt to assets ratio.
2.2 Solvency
BCE-PR-Z has an Altman-Z score of 0.50. This is a bad value and indicates that BCE-PR-Z is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-Z (0.50) is better than 70.00% of its industry peers.
BCE-PR-Z has a debt to FCF ratio of 14.54. This is a negative value and a sign of low solvency as BCE-PR-Z would need 14.54 years to pay back of all of its debts.
BCE-PR-Z's Debt to FCF ratio of 14.54 is on the low side compared to the rest of the industry. BCE-PR-Z is outperformed by 63.33% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE-PR-Z has dependencies on debt financing.
BCE-PR-Z's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. BCE-PR-Z is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.28
WACC4.03%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BCE-PR-Z may have some problems paying its short term obligations.
The Current ratio of BCE-PR-Z (0.60) is worse than 73.33% of its industry peers.
A Quick Ratio of 0.57 indicates that BCE-PR-Z may have some problems paying its short term obligations.
BCE-PR-Z has a Quick ratio of 0.57. This is in the lower half of the industry: BCE-PR-Z underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
BCE-PR-Z shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.30%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has decreased by -1.07% in the past year.
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
Based on estimates for the next years, BCE-PR-Z will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
The Revenue is expected to grow by 2.25% on average over the next years.
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
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.
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
A Price/Earnings ratio of 5.76 indicates a rather cheap valuation of BCE-PR-Z.
The rest of the industry has a similar Price/Earnings ratio as BCE-PR-Z.
When comparing the Price/Earnings ratio of BCE-PR-Z to the average of the S&P500 Index (28.79), we can say BCE-PR-Z is valued rather cheaply.
A Price/Forward Earnings ratio of 6.32 indicates a rather cheap valuation of BCE-PR-Z.
BCE-PR-Z's Price/Forward Earnings ratio is in line with the industry average.
BCE-PR-Z 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 | 5.76 | ||
| Fwd PE | 6.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-Z indicates a slightly more expensive valuation: BCE-PR-Z is more expensive than 60.00% of the companies listed in the same industry.
BCE-PR-Z's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BCE-PR-Z is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.79 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
BCE-PR-Z'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-Z is a good candidate for dividend investing.
BCE-PR-Z's Dividend Yield is rather good when compared to the industry average which is at 11.62. BCE-PR-Z pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, BCE-PR-Z pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
5.2 History
The dividend of BCE-PR-Z has a limited annual growth rate of 4.82%.
BCE-PR-Z has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-Z has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
2331.29% of the earnings are spent on dividend by BCE-PR-Z. This is not a sustainable payout ratio.
BCE-PR-Z'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-Z (4/25/2025, 7:00:00 PM)
17.5
0 (0%)
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 Cap16.13B
Analysts50.91
Price Target19.79 (13.09%)
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 Years1
Div Non Decr Years11
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)-0.49%
PT rev (3m)-0.48%
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 | 5.76 | ||
| Fwd PE | 6.32 | ||
| P/S | 0.66 | ||
| P/FCF | 5.79 | ||
| P/OCF | 2.24 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.12 |
EPS(TTM)3.04
EY17.37%
EPS(NY)2.77
Fwd EY15.81%
FCF(TTM)3.02
FCFY17.26%
OCF(TTM)7.82
OCFY44.71%
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 | 0.5 |
F-Score5
WACC4.03%
ROIC/WACC1.28
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%