BCE INC (BCE) Stock Fundamental Analysis
USA - NYSE:BCE - CA05534B7604 - Common Stock
23.1 USD
-0.39 (-1.66%)
23.1 USD
0 (0%)
Taking everything into account, BCE scores 4 out of 10 in our fundamental rating. BCE was compared to 35 industry peers in the Diversified Telecommunication Services industry. BCE has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE is valued correctly, but it does not seem to be growing. Finally 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.
In the past 5 years BCE has always been profitable.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
BCE has a Return On Assets (0.61%) which is comparable to the rest of the industry.
The Return On Equity of BCE (2.40%) is comparable to the rest of the industry.
BCE's Return On Invested Capital of 7.28% is fine compared to the rest of the industry. BCE outperforms 77.14% 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 6.32%.
The last Return On Invested Capital (7.28%) for BCE is above the 3 year average (7.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| 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 1.77%. This is comparable to the rest of the industry: BCE outperforms 51.43% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
The Operating Margin of BCE (22.50%) is better than 82.86% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
BCE's Gross Margin of 67.94% is amongst the best of the industry. BCE outperforms 85.71% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
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.
BCE has about the same amout of shares outstanding than it did 1 year ago.
BCE has more shares outstanding than it did 5 years ago.
BCE has a worse debt/assets ratio than last year.
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 in line with its industry, outperforming 45.71% of the companies in the same industry.
The Debt to FCF ratio of BCE is 9.25, which is on the high side as it means it would take BCE, 9.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.25, BCE is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE has dependencies on debt financing.
BCE's Debt to Equity ratio of 1.80 is on the low side compared to the rest of the industry. BCE is outperformed by 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.39
WACC5.24%
2.3 Liquidity
BCE has a Current Ratio of 0.61. 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 0.61, BCE is doing worse than 88.57% of the companies in the same industry.
BCE has a Quick Ratio of 0.61. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BCE (0.57) is worse than 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.84%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has decreased by -0.66% in the past year.
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
3.2 Future
Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 1.20% on average per year.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.08% yearly.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
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.
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
BCE is valuated reasonably with a Price/Earnings ratio of 11.11.
BCE's Price/Earnings ratio is rather cheap when compared to the industry. BCE is cheaper than 94.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (27.20), we can say BCE is valued rather cheaply.
The Price/Forward Earnings ratio is 11.55, which indicates a very decent valuation of BCE.
Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 88.57% of the companies in the same industry.
BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
77.14% 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 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 6.36 |
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 -3.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 7.46%, which is a nice return.
Compared to an average industry Dividend Yield of 5.03, BCE pays a better dividend. On top of this BCE pays more dividend than 91.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
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
BCE pays out 739.72% of its income as dividend. This is not a sustainable payout ratio.
BCE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
23.1
-0.39 (-1.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner Change-1.33%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.54B
Analysts55
Price Target25.97 (12.42%)
Short Float %4.03%
Short Ratio12.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
Yearly Dividend3.01
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)4.21%
PT rev (3m)2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 11.55 | ||
| P/S | 1.21 | ||
| P/FCF | 7.29 | ||
| P/OCF | 3.96 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)2.08
EY9%
EPS(NY)2
Fwd EY8.66%
FCF(TTM)3.17
FCFY13.71%
OCF(TTM)5.83
OCFY25.26%
SpS19.03
BVpS14.09
TBVpS-6.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 13.5% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.7 |
F-Score5
WACC5.24%
ROIC/WACC1.39
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.66%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%