BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - New York Stock Exchange, Inc. - CA05534B7604 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BCE. BCE was compared to 32 industry peers in the Diversified Telecommunication Services industry. While BCE is still in line with the averages on profitability rating, there are concerns on its financial health. BCE has a valuation in line with the averages, but it does not seem to be growing. BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCE was profitable.
BCE had a positive operating cash flow in the past year.
BCE had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.54%, BCE perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
BCE has a Return On Equity (2.26%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 7.28%, BCE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
BCE had an Average Return On Invested Capital over the past 3 years of 7.08%. This is in line with the industry average of 7.13%.
The 3 year average ROIC (7.08%) for BCE is below the current ROIC(7.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROIC | 7.28% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)7.08%
ROIC(5y)7.18%
1.3 Margins
BCE has a Profit Margin of 1.61%. This is comparable to the rest of the industry: BCE outperforms 56.25% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
BCE has a better Operating Margin (22.74%) than 84.38% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
BCE has a Gross Margin of 68.27%. This is amongst the best in the industry. BCE outperforms 81.25% of its industry peers.
BCE'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
The number of shares outstanding for BCE has been increased compared to 5 years ago.
Compared to 1 year ago, BCE has a worse debt to assets ratio.
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.
With a Altman-Z score value of 0.68, BCE perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
BCE has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE would need 11.06 years to pay back of all of its debts.
BCE's Debt to FCF ratio of 11.06 is in line compared to the rest of the industry. BCE outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE has dependencies on debt financing.
The Debt to Equity ratio of BCE (1.95) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.41
WACC5.17%
2.3 Liquidity
BCE has a Current Ratio of 0.64. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.64, BCE is doing worse than 84.38% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, BCE is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -2.27% in the last year.
BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
Looking at the last year, BCE shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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 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
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
A Price/Earnings ratio of 10.86 indicates a reasonable valuation of BCE.
90.63% of the companies in the same industry are more expensive than BCE, based on the Price/Earnings ratio.
BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.52.
A Price/Forward Earnings ratio of 12.11 indicates a correct valuation of BCE.
BCE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCE is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. BCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
BCE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCE is cheaper than 71.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
BCE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BCE's earnings are expected to decrease with -2.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 6.91%, which is a nice return.
Compared to an average industry Dividend Yield of 5.05, BCE pays a better dividend. On top of this BCE pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of BCE has a limited annual growth rate of 4.82%.
BCE has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
898.21% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
The dividend of BCE 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%
23.89
+0.08 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.02B
Analysts53.64
Price Target25.24 (5.65%)
Short Float %5.49%
Short Ratio15.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend3.04
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years16
Div Non Decr Years16
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)0.03%
PT rev (3m)0.92%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 12.11 | ||
| P/S | 1.24 | ||
| P/FCF | 8.51 | ||
| P/OCF | 3.97 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)2.2
EY9.21%
EPS(NY)1.97
Fwd EY8.26%
FCF(TTM)2.81
FCFY11.75%
OCF(TTM)6.01
OCFY25.17%
SpS19.26
BVpS13.72
TBVpS-7.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 13.65% | ||
| 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)7.08%
ROIC(5y)7.18%
ROICexc(3y)7.23%
ROICexc(5y)7.29%
ROICexgc(3y)13.21%
ROICexgc(5y)13.21%
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 | 0.68 |
F-Score6
WACC5.17%
ROIC/WACC1.41
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%