BCE INC (BCE.CA) Stock Fundamental Analysis
TSX:BCE - Toronto Stock Exchange - CA05534B7604 - Common Stock - Currency: CAD
We assign a fundamental rating of 2 out of 10 to BCE. BCE was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE has a bad profitability rating. Also its financial health evaluation is rather negative. BCE is valued expensive and it does not seem to be growing. BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE had positive earnings in the past year.
BCE had a positive operating cash flow in the past year.
Of the past 5 years BCE 4 years were profitable.
BCE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BCE (0.12%) is worse than 86.67% of its industry peers.
BCE has a worse Return On Equity (0.48%) than 86.67% of its industry peers.
With a Return On Invested Capital value of 6.82%, BCE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 6.94%.
The last Return On Invested Capital (6.82%) for BCE is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.48% | ||
| ROIC | 6.82% |
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
1.3 Margins
With a Profit Margin value of 0.34%, BCE is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of BCE has declined.
BCE has a worse Operating Margin (22.51%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
With a Gross Margin value of 68.47%, BCE is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BCE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.51% | ||
| PM (TTM) | 0.34% | ||
| GM | 68.47% |
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
There is no outstanding debt for BCE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that BCE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, BCE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of BCE is 13.29, which is on the high side as it means it would take BCE, 13.29 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.29, BCE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
BCE has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.84, BCE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.27
WACC5.38%
2.3 Liquidity
BCE has a Current Ratio of 0.62. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE has a worse Current ratio (0.62) than 83.33% of its industry peers.
A Quick Ratio of 0.60 indicates that BCE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, BCE is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.69% on average per year.
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
3.2 Future
Based on estimates for the next years, BCE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.84% on average per year.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y-9.02%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
EPS Next 5Y10.84%
Revenue Next Year0.25%
Revenue Next 2Y1.32%
Revenue Next 3Y1.06%
Revenue Next 5Y4.14%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.18, the valuation of BCE can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a rather expensive valuation: BCE more expensive than 83.33% of the companies listed in the same industry.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.27, BCE is valued correctly.
80.00% of the companies in the same industry are cheaper than BCE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. BCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit more expensive than 73.33% of the companies in the same industry.
BCE's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BCE is more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -2.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.94%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 10.71. BCE pays more dividend than 100.00% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.94% |
5.2 History
The dividend of BCE has a limited annual growth rate of 5.05%.
BCE has paid a dividend for at least 10 years, which is a reliable track record.
BCE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.05%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
BCE pays out 4482.14% of its income as dividend. This is not a sustainable payout ratio.
BCE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4482.14%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
TSX:BCE (2/21/2025, 7:00:00 PM)
34.1
+0.69 (+2.07%)
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 Cap31.11B
Analysts52.73
Price Target36.37 (6.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.94% |
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-3.58%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-3.58%
Max EPS beat(4)2.82%
EPS beat(8)3
Avg EPS beat(8)0.54%
EPS beat(12)7
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)-12.28%
PT rev (3m)-28.63%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.27 | ||
| P/FCF | 10.31 | ||
| P/OCF | 4.13 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)3.05
EY8.94%
EPS(NY)2.78
Fwd EY8.15%
FCF(TTM)3.31
FCFY9.7%
OCF(TTM)8.26
OCFY24.22%
SpS26.81
BVpS19.38
TBVpS-10.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.12% | ||
| ROE | 0.48% | ||
| ROCE | 9.4% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 13.85% | ||
| OM | 22.51% | ||
| PM (TTM) | 0.34% | ||
| GM | 68.47% | ||
| FCFM | 12.33% |
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
ROICexc(3y)6.59%
ROICexc(5y)6.91%
ROICexgc(3y)12.01%
ROICexgc(5y)12.54%
ROCE(3y)9.27%
ROCE(5y)9.8%
ROICexcg growth 3Y-0.73%
ROICexcg growth 5Y-3.96%
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-3.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 89.57% | ||
| Cap/Sales | 18.47% | ||
| Interest Coverage | 3.25 | ||
| Cash Conversion | 71.41% | ||
| Profit Quality | 3590.48% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.68 |
F-Score6
WACC5.38%
ROIC/WACC1.27
Cap/Depr(3y)103.5%
Cap/Depr(5y)99.32%
Cap/Sales(3y)20.39%
Cap/Sales(5y)19.26%
Profit Quality(3y)126.35%
Profit Quality(5y)130.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
EPS Next Y-9.02%
EPS Next 2Y-5.4%
EPS Next 3Y-2.18%
EPS Next 5Y10.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
Revenue Next Year0.25%
Revenue Next 2Y1.32%
Revenue Next 3Y1.06%
Revenue Next 5Y4.14%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.7%
FCF growth 1Y-14.34%
FCF growth 3Y-5.44%
FCF growth 5Y-2.5%
OCF growth 1Y-6.43%
OCF growth 3Y0.06%
OCF growth 5Y1.03%