BCE INC - BCECN 4.94 PERP (BCE-PR-A.CA) Stock Fundamental Analysis
Canada - TSX:BCE-PR-A - CA05534B7943
19.84 CAD
-0.1 (-0.5%)
Overall BCE-PR-A gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-A against 29 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-A is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-A has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-A was profitable.
BCE-PR-A had a positive operating cash flow in the past year.
Each year in the past 5 years BCE-PR-A has been profitable.
BCE-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-A has a Return On Assets of 0.61%. This is in the lower half of the industry: BCE-PR-A underperforms 65.52% of its industry peers.
The Return On Equity of BCE-PR-A (2.40%) is worse than 65.52% of its industry peers.
With a Return On Invested Capital value of 5.04%, BCE-PR-A is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for BCE-PR-A is in line with the industry average of 5.46%.
The last Return On Invested Capital (5.04%) for BCE-PR-A is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROIC | 5.04% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
1.3 Margins
BCE-PR-A's Profit Margin of 1.77% is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 65.52% of its industry peers.
BCE-PR-A's Profit Margin has declined in the last couple of years.
BCE-PR-A has a worse Operating Margin (22.50%) than 65.52% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-A has remained more or less at the same level.
BCE-PR-A's Gross Margin of 67.94% is in line compared to the rest of the industry. BCE-PR-A outperforms 41.38% of its industry peers.
BCE-PR-A'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
BCE-PR-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BCE-PR-A has about the same amount of shares outstanding.
The number of shares outstanding for BCE-PR-A has been increased compared to 5 years ago.
BCE-PR-A has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-A has an Altman-Z score of 0.57. This is a bad value and indicates that BCE-PR-A is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-A (0.57) is better than 65.52% of its industry peers.
BCE-PR-A has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as BCE-PR-A would need 9.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.25, BCE-PR-A is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE-PR-A has dependencies on debt financing.
The Debt to Equity ratio of BCE-PR-A (1.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.57 |
ROIC/WACC1.16
WACC4.34%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE-PR-A may have some problems paying its short term obligations.
BCE-PR-A's Current ratio of 0.61 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 65.52% of its industry peers.
A Quick Ratio of 0.57 indicates that BCE-PR-A may have some problems paying its short term obligations.
The Quick ratio of BCE-PR-A (0.57) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-A have decreased by -6.84% in the last year.
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.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
The Earnings Per Share is expected to grow by 1.20% on average over the next years.
Based on estimates for the next years, BCE-PR-A will show a small growth in Revenue. The Revenue will grow by 2.08% on average per year.
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
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
A Price/Earnings ratio of 6.94 indicates a rather cheap valuation of BCE-PR-A.
BCE-PR-A's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.27. BCE-PR-A is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.21 indicates a rather cheap valuation of BCE-PR-A.
BCE-PR-A's Price/Forward Earnings is on the same level as the industry average.
BCE-PR-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-A is on the same level as its industry peers.
BCE-PR-A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 5.27 |
4.3 Compensation for Growth
BCE-PR-A'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-PR-A has a Yearly Dividend Yield of 7.46%, which is a nice return.
BCE-PR-A's Dividend Yield is a higher than the industry average which is at 7.00.
Compared to an average S&P500 Dividend Yield of 2.38, BCE-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
5.2 History
The dividend of BCE-PR-A has a limited annual growth rate of 4.82%.
BCE-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
BCE-PR-A has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
BCE-PR-A pays out 739.72% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
TSX:BCE-PR-A (9/15/2025, 7:00:00 PM)
19.84
-0.1 (-0.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap18.50B
Analysts55
Price Target21.3 (7.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years0
Div Non Decr Years11
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)1.14%
PT rev (3m)2.27%
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 | 6.94 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.76 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.47 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.27 |
EPS(TTM)2.86
EY14.42%
EPS(NY)2.75
Fwd EY13.87%
FCF(TTM)4.36
FCFY21.96%
OCF(TTM)8.03
OCFY40.45%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| 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)4.9%
ROIC(5y)4.97%
ROICexc(3y)5.01%
ROICexc(5y)5.05%
ROICexgc(3y)9.15%
ROICexgc(5y)9.15%
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 | 0.57 |
F-Score5
WACC4.34%
ROIC/WACC1.16
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%