BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - New York Stock Exchange, Inc. - CA05534B7604 - Common Stock - Currency: USD
Overall BCE gets a fundamental rating of 4 out of 10. We evaluated BCE against 31 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. 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.
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
BCE's Return On Assets of 0.12% is in line compared to the rest of the industry. BCE outperforms 53.33% of its industry peers.
Looking at the Return On Equity, with a value of 0.48%, BCE is in line with its industry, outperforming 53.33% of the companies in the same industry.
BCE has a better Return On Invested Capital (6.82%) than 80.00% 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 5.65%.
The last Return On Invested Capital (6.82%) for BCE is above the 3 year average (6.51%), which is a sign of increasing profitability.
| 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
BCE has a Profit Margin (0.34%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
The Operating Margin of BCE (22.51%) is better than 86.67% 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 has a Gross Margin of 68.47%. This is amongst the best in the industry. BCE outperforms 83.33% of its industry peers.
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 | 22.51% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE has more shares outstanding
BCE has a worse debt/assets ratio than last year.
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.
The Altman-Z score of BCE (0.68) is worse than 70.00% of its industry peers.
BCE has a debt to FCF ratio of 13.29. This is a negative value and a sign of low solvency as BCE would need 13.29 years to pay back of all of its debts.
BCE has a Debt to FCF ratio of 13.29. This is comparable to the rest of the industry: BCE outperforms 56.67% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that BCE has dependencies on debt financing.
BCE's Debt to Equity ratio of 1.84 is on the low side compared to the rest of the industry. BCE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 13.29 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.27
WACC5.37%
2.3 Liquidity
A Current Ratio of 0.62 indicates that BCE may have some problems paying its short term obligations.
BCE's Current ratio of 0.62 is on the low side compared to the rest of the industry. BCE is outperformed by 93.33% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.60, BCE is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -4.75% in the last year.
The Earnings Per Share has been decreasing by -1.77% on average over the past years.
BCE shows a decrease in Revenue. In the last year, the revenue decreased by -0.73%.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 1.01% on average per year.
EPS 1Y (TTM)-4.75%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%-1.79%
3.2 Future
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.58% yearly.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
EPS Next Y-6.6%
EPS Next 2Y-5.2%
EPS Next 3Y-3.26%
EPS Next 5Y7.58%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y3.03%
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
A Price/Earnings ratio of 11.38 indicates a reasonable valuation of BCE.
Based on the Price/Earnings ratio, BCE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.58, BCE is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.88, the valuation of BCE can be described as very reasonable.
70.00% of the companies in the same industry are more expensive than BCE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (24.47), we can say BCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
76.67% 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 6.4 |
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 -3.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.2%
EPS Next 3Y-3.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.95%, BCE is a good candidate for dividend investing.
In the last 3 months the price of BCE has falen by -28.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.32, BCE pays a better dividend. On top of this BCE pays more dividend than 100.00% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.05%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
BCE pays out 4482.14% of its income as dividend. 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-5.2%
EPS Next 3Y-3.26%
BCE INC
NYSE:BCE (1/27/2025, 11:59:07 AM)
23.9
+0.37 (+1.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.74%
Inst Owner Change0.78%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap21.80B
Analysts54.78
Price Target28.85 (20.71%)
Short Float %4.51%
Short Ratio9.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
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)-7.97%
PT rev (3m)-21.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.88 | ||
| P/S | 1.28 | ||
| P/FCF | 10.37 | ||
| P/OCF | 4.15 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.4 |
EPS(TTM)2.1
EY8.79%
EPS(NY)2.01
Fwd EY8.42%
FCF(TTM)2.31
FCFY9.65%
OCF(TTM)5.76
OCFY24.1%
SpS18.7
BVpS13.51
TBVpS-7.21
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
WACC5.37%
ROIC/WACC1.27
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)-4.75%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%-7.41%
EPS Next Y-6.6%
EPS Next 2Y-5.2%
EPS Next 3Y-3.26%
EPS Next 5Y7.58%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%-1.79%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y3.03%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.78%
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%