BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
23.13 USD
+0.18 (+0.78%)
23.13 USD
0 (0%)
Overall BCE gets a fundamental rating of 5 out of 10. We evaluated BCE against 37 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
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
The Return On Assets of BCE (7.85%) is better than 91.89% of its industry peers.
The Return On Equity of BCE (27.48%) is better than 94.59% of its industry peers.
BCE has a Return On Invested Capital of 6.52%. This is in the better half of the industry: BCE outperforms 72.97% 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 6.50%.
| 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
BCE has a Profit Margin of 25.21%. This is amongst the best in the industry. BCE outperforms 94.59% of its industry peers.
BCE's Profit Margin has declined in the last couple of years.
BCE has a Operating Margin of 22.38%. This is amongst the best in the industry. BCE outperforms 86.49% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
The Gross Margin of BCE (67.92%) is better than 86.49% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for BCE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that BCE is in the distress zone and has some risk of bankruptcy.
BCE has a Altman-Z score of 0.72. This is in the lower half of the industry: BCE underperforms 62.16% of its industry peers.
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 64.86% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.57, BCE is doing worse than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC1.27
WACC5.15%
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 86.49% 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.
With a Quick ratio value of 0.55, BCE is not doing good in the industry: 86.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.66% yearly.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.66%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y1.83%
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
With a Price/Earnings ratio of 11.23, the valuation of BCE can be described as very reasonable.
Based on the Price/Earnings ratio, BCE is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. BCE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.98, the valuation of BCE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 83.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (34.42), we can say BCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
70.27% of the companies in the same industry are more expensive than BCE, based on the Enterprise Value to EBITDA ratio.
BCE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE is cheaper than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 5.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.78, BCE pays a better dividend. On top of this BCE pays more dividend than 81.08% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
5.2 History
The dividend of BCE has a limited annual growth rate of 4.82%.
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)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
BCE pays out 43.52% of its income as dividend. 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-5.41%
EPS Next 3Y-3.28%
23.13
+0.18 (+0.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner Change1.38%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.57B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target26.29 (13.66%)
Short Float %2.52%
Short Ratio7.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend2.96
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)2.09%
PT rev (3m)2.62%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 11.98 | ||
| P/S | 1.24 | ||
| P/FCF | 7.68 | ||
| P/OCF | 4.16 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.06
EY8.91%
EPS(NY)1.93
Fwd EY8.35%
FCF(TTM)3.01
FCFY13.02%
OCF(TTM)5.56
OCFY24.04%
SpS18.64
BVpS17.1
TBVpS-6.25
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.15
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 | 0.72 |
F-Score6
WACC5.15%
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-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.66%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y1.83%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y16.08%
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 11.23 and the Price/Book (PB) ratio is 1.35.
How sustainable is the dividend of BCE INC (BCE) stock?
The dividend rating of BCE INC (BCE) is 7 / 10 and the dividend payout ratio is 43.52%.