BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - New York Stock Exchange, Inc. - CA05534B7604 - Common Stock - Currency: USD
BCE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BCE while its profitability can be described as average. BCE is valued correctly, 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.
Of the past 5 years BCE 4 years were profitable.
Of the past 5 years BCE 4 years had a positive operating cash flow.
1.2 Ratios
BCE has a Return On Assets (0.12%) which is comparable to the rest of the industry.
The Return On Equity of BCE (0.48%) is comparable to the rest of the industry.
BCE has a Return On Invested Capital of 6.82%. This is in the better half of the industry: BCE outperforms 76.67% of its industry peers.
BCE had an Average Return On Invested Capital over the past 3 years of 6.51%. This is in line with the industry average of 5.71%.
The 3 year average ROIC (6.51%) for BCE is below the current ROIC(6.82%), indicating increased profibility in the last year.
| 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
The Profit Margin of BCE (0.34%) is comparable to the rest of the industry.
BCE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.51%, BCE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.47%, BCE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
BCE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE is creating some value.
BCE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
With a Altman-Z score value of 0.68, BCE is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
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.
BCE has a Debt to FCF ratio (13.29) which is in line with its industry peers.
A Debt/Equity ratio of 1.84 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 1.84, BCE is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.26
WACC5.42%
2.3 Liquidity
A Current Ratio of 0.62 indicates that BCE may have some problems paying its short term obligations.
With a Current ratio value of 0.62, BCE is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
BCE has a Quick 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.
With a Quick ratio value of 0.60, BCE is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| 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
BCE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
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 10.92, the valuation of BCE can be described as reasonable.
Based on the Price/Earnings ratio, BCE is valued a bit cheaper than 76.67% of the companies in the same industry.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.99, the valuation of BCE can be described as reasonable.
83.33% of the companies in the same industry are more expensive than BCE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, BCE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
BCE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
BCE has a very decent profitability rating, which may justify a higher PE ratio.
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.
Compared to an average industry Dividend Yield of 4.81, BCE pays a better dividend. On top of this BCE pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, BCE pays a better dividend.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.05%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
4482.14% of the earnings are spent on dividend by BCE. 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%
23.36
-0.55 (-2.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner Change-80.17%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap21.31B
Analysts52.73
Price Target25.89 (10.83%)
Short Float %4.43%
Short Ratio10.01
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)-10.25%
PT rev (3m)-18.49%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.24 | ||
| P/FCF | 10.08 | ||
| P/OCF | 4.03 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)2.14
EY9.16%
EPS(NY)1.95
Fwd EY8.34%
FCF(TTM)2.32
FCFY9.92%
OCF(TTM)5.79
OCFY24.79%
SpS18.8
BVpS13.59
TBVpS-7.25
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
WACC5.42%
ROIC/WACC1.26
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%