BCE INC - BCECN 4.94 PERP (BCE-PR-A.CA) Stock Fundamental Analysis
TSX:BCE-PR-A - Toronto Stock Exchange - CA05534B7943 - Currency: CAD
Overall BCE-PR-A gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-A against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE-PR-A have multiple concerns. BCE-PR-A has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally BCE-PR-A also has an excellent dividend rating.
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.
BCE-PR-A had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE-PR-A had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BCE-PR-A (0.54%) is worse than 70.00% of its industry peers.
BCE-PR-A has a Return On Equity of 2.26%. This is in the lower half of the industry: BCE-PR-A underperforms 70.00% of its industry peers.
BCE-PR-A has a worse Return On Invested Capital (5.04%) than 70.00% of its industry peers.
BCE-PR-A had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.41%.
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 | 0.54% | ||
| ROE | 2.26% | ||
| 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
The Profit Margin of BCE-PR-A (1.61%) is worse than 70.00% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-A has declined.
BCE-PR-A has a worse Operating Margin (22.74%) than 70.00% of its industry peers.
BCE-PR-A's Operating Margin has been stable in the last couple of years.
The Gross Margin of BCE-PR-A (68.27%) is worse than 63.33% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% |
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 below the Cost of Capital (WACC), so BCE-PR-A is destroying value.
The number of shares outstanding for BCE-PR-A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE-PR-A has more shares outstanding
BCE-PR-A has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-A has an Altman-Z score of 0.54. This is a bad value and indicates that BCE-PR-A is not financially healthy and even has some risk of bankruptcy.
BCE-PR-A's Altman-Z score of 0.54 is fine compared to the rest of the industry. BCE-PR-A outperforms 66.67% of its industry peers.
BCE-PR-A has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-A would need 11.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.06, BCE-PR-A is doing worse than 60.00% of the companies in the same industry.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE-PR-A has dependencies on debt financing.
BCE-PR-A's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.82
WACC6.18%
2.3 Liquidity
BCE-PR-A has a Current Ratio of 0.64. This is a bad value and indicates that BCE-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, BCE-PR-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that BCE-PR-A may have some problems paying its short term obligations.
BCE-PR-A's Quick ratio of 0.61 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-A have decreased by -2.27% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
Looking at the last year, BCE-PR-A shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
BCE-PR-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
3.2 Future
The Earnings Per Share is expected to grow by 7.92% on average over the next years.
The Revenue is expected to grow by 1.90% on average over the next years.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
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
BCE-PR-A is valuated cheaply with a Price/Earnings ratio of 6.13.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-A is on the same level as its industry peers.
BCE-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 6.82, the valuation of BCE-PR-A can be described as very cheap.
BCE-PR-A's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BCE-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.82 |
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 | 4.8 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
BCE-PR-A's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
BCE-PR-A has a Yearly Dividend Yield of 6.75%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, BCE-PR-A pays a better dividend. On top of this BCE-PR-A pays more dividend than 83.33% of the companies listed in the same industry.
BCE-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
5.2 History
The dividend of BCE-PR-A has a limited annual growth rate of 4.82%.
BCE-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
BCE-PR-A pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-A (6/18/2025, 7:00:00 PM)
18.44
+0.06 (+0.33%)
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 Cap17.00B
Analysts52.73
Price Target20.83 (12.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)9.09%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)3.75%
Min EPS beat(4)-3.58%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)2.52%
EPS beat(16)10
Avg EPS beat(16)2.92%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1%
Revenue beat(16)2
Avg Revenue beat(16)-1.16%
PT rev (1m)2.7%
PT rev (3m)11.58%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.82 | ||
| P/S | 0.7 | ||
| P/FCF | 4.8 | ||
| P/OCF | 2.24 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.21 |
EPS(TTM)3.01
EY16.32%
EPS(NY)2.7
Fwd EY14.66%
FCF(TTM)3.84
FCFY20.85%
OCF(TTM)8.24
OCFY44.68%
SpS26.39
BVpS18.8
TBVpS-10.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 9.46% | ||
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% | ||
| FCFM | 14.57% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 80.2% | ||
| Cap/Sales | 16.65% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 71.77% | ||
| Profit Quality | 906.39% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.54 |
F-Score6
WACC6.18%
ROIC/WACC0.82
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)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y14.93%
FCF growth 1Y39.2%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-2.7%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%