BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
22.73 USD
-0.11 (-0.48%)
22.84 USD
+0.11 (+0.48%)
Taking everything into account, BCE scores 5 out of 10 in our fundamental rating. BCE was compared to 38 industry peers in the Diversified Telecommunication Services industry. While BCE has a great profitability rating, there are quite some concerns on its financial health. BCE has a decent growth rate and is not valued too expensively. BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE had positive earnings in the past year.
In the past year BCE had a positive cash flow from operations.
Each year in the past 5 years BCE has been profitable.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.85%, BCE belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.48%, BCE belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
The Return On Invested Capital of BCE (6.52%) is better than 71.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCE is in line with the industry average of 6.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 6.52% |
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
Looking at the Profit Margin, with a value of 25.21%, BCE belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
BCE's Profit Margin has declined in the last couple of years.
The Operating Margin of BCE (22.38%) is better than 86.84% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 67.92%, BCE belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
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 | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% |
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 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
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
BCE has an Altman-Z score of 0.70. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.70, BCE is doing worse than 60.53% of the companies in the same industry.
The Debt to FCF ratio of BCE is 10.36, which is on the high side as it means it would take BCE, 10.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 10.36, BCE is doing good in the industry, outperforming 65.79% of the companies in the same industry.
BCE has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.57, BCE is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.27
WACC5.12%
2.3 Liquidity
A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.58, BCE is doing worse than 89.47% of the companies in the same industry.
BCE has a Quick Ratio of 0.58. 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 Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -3.65% in the last year.
Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
3.2 Future
The Earnings Per Share is expected to grow by 1.21% on average over the next years.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-8.69%
EPS Next 2Y-5.15%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
Revenue Next Year1.46%
Revenue Next 2Y2.24%
Revenue Next 3Y1.9%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 10.77, the valuation of BCE can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 86.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. BCE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.44 indicates a reasonable valuation of BCE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 81.58% of the companies listed in the same industry.
BCE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.38 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
BCE's earnings are expected to decrease with -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.15%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 5.56%, which is a nice return.
Compared to an average industry Dividend Yield of 2.30, BCE pays a better dividend. On top of this BCE pays more dividend than 84.21% of the companies listed in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
43.52% of the earnings are spent on dividend by BCE. This is a bit on the high side, but may be sustainable.
BCE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.15%
EPS Next 3Y-3.3%
22.73
-0.11 (-0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.22%
Inst Owner Change1.39%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.20B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts65.45
Price Target26.41 (16.19%)
Short Float %2.38%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend3.02
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.44%
Min EPS beat(2)-12.22%
Max EPS beat(2)9.34%
EPS beat(4)3
Avg EPS beat(4)4.21%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)6
Avg EPS beat(12)1.77%
EPS beat(16)10
Avg EPS beat(16)2.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.91%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)3.07%
PT rev (3m)1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)2.13%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.19 | ||
| P/FCF | 7.38 | ||
| P/OCF | 3.99 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)2.11
EY9.28%
EPS(NY)1.99
Fwd EY8.74%
FCF(TTM)3.08
FCFY13.55%
OCF(TTM)5.69
OCFY25.03%
SpS19.07
BVpS17.49
TBVpS-6.39
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROCE | 8.25% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.28% | ||
| OM | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% | ||
| FCFM | 16.15% |
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%
ROICexgc growth 3Y1.14%
ROICexgc 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 65.44% | ||
| Cap/Sales | 13.68% | ||
| Interest Coverage | 2.91 | ||
| Cash Conversion | 68.91% | ||
| Profit Quality | 64.08% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.7 |
F-Score6
WACC5.12%
ROIC/WACC1.27
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)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
EPS Next Y-8.69%
EPS Next 2Y-5.15%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.46%
Revenue Next 2Y2.24%
Revenue Next 3Y1.9%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year95.07%
EBIT Next 3Y26.66%
EBIT Next 5Y16.23%
FCF growth 1Y77.12%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-3.63%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%
BCE INC / BCE FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 5 / 10 to BCE.
What is the valuation status of BCE INC (BCE) stock?
ChartMill assigns a valuation rating of 6 / 10 to BCE INC (BCE). This can be considered as Fairly Valued.
How profitable is BCE INC (BCE) stock?
BCE INC (BCE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BCE INC (BCE) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE) is 10.77 and the Price/Book (PB) ratio is 1.3.
How sustainable is the dividend of BCE INC (BCE) stock?
The dividend rating of BCE INC (BCE) is 8 / 10 and the dividend payout ratio is 43.52%.