BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
25.2 USD
+0.49 (+1.98%)
25.2 USD
0 (0%)
Taking everything into account, BCE scores 4 out of 10 in our fundamental rating. BCE was compared to 37 industry peers in the Diversified Telecommunication Services industry. While BCE belongs to the best of the industry regarding profitability, there are concerns on its financial health. BCE has a correct valuation and a medium growth rate. 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.
- In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
- BCE has a Return On Assets of 7.85%. This is amongst the best in the industry. BCE outperforms 91.89% of its industry peers.
- BCE has a Return On Equity of 27.48%. This is amongst the best in the industry. BCE outperforms 91.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.52%, BCE is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BCE is in line with the industry average of 6.52%.
| 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 94.59% of the companies in the same industry.
- BCE's Profit Margin has declined in the last couple of years.
- BCE has a better Operating Margin (22.38%) than 86.49% of its industry peers.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- 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.
- BCE has about the same amout of shares outstanding than it did 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 0.73, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.73, BCE is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
- 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.
- BCE has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: BCE underperforms 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.73 |
ROIC/WACC1.23
WACC5.3%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- BCE has a worse Current ratio (0.58) than 89.19% of its industry peers.
- 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.
- The Quick ratio of BCE (0.55) is worse than 86.49% 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.
- 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
- Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 0.73% on average per year.
- The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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
- The Price/Earnings ratio is 12.00, which indicates a correct valuation of BCE.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 81.08% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. BCE is valued rather cheaply when compared to this.
- BCE is valuated correctly with a Price/Forward Earnings ratio of 12.80.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 78.38% 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 (24.32), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 70.27% of the companies listed in the same industry.
- 70.27% of the companies in the same industry are more expensive than BCE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 6.83 |
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 -3.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.19%, BCE is a good candidate for dividend investing.
- BCE's Dividend Yield is rather good when compared to the industry average which is at 2.33. BCE pays more dividend than 83.78% of the companies in the same industry.
- BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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
- 43.52% of the earnings are spent on dividend by BCE. This is a bit on the high side, but may be sustainable.
- The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
BCE INC / BCE FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 4 / 10 to BCE.
What is the valuation status for BCE stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the expected EPS growth for BCE stock?
The Earnings per Share (EPS) of BCE INC (BCE) is expected to decline by -9.15% in the next year.
Is the dividend of BCE INC sustainable?
The dividend rating of BCE INC (BCE) is 8 / 10 and the dividend payout ratio is 43.52%.