BCE INC - BCECN 4.94 PERP (BCE-PR-A.CA) Stock Fundamental Analysis
TSX:BCE-PR-A - Toronto Stock Exchange - CA05534B7943 - Currency: CAD
Taking everything into account, BCE-PR-A scores 3 out of 10 in our fundamental rating. BCE-PR-A was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-A has a bad profitability rating. Also its financial health evaluation is rather negative. BCE-PR-A has a valuation in line with the averages, but it does not seem to be growing. 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.
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
The Return On Assets of BCE-PR-A (0.54%) is worse than 66.67% 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 66.67% of its industry peers.
BCE-PR-A has a Return On Invested Capital of 5.04%. This is in the lower half of the industry: BCE-PR-A underperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-A is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-A is below the current ROIC(5.04%), indicating increased profibility in the last year.
| 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
BCE-PR-A has a Profit Margin of 1.61%. This is in the lower half of the industry: BCE-PR-A underperforms 66.67% of its industry peers.
BCE-PR-A's Profit Margin has declined in the last couple of years.
BCE-PR-A has a Operating Margin of 22.74%. This is in the lower half of the industry: BCE-PR-A underperforms 66.67% 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.
Looking at the Gross Margin, with a value of 68.27%, BCE-PR-A is doing worse than 60.00% of the companies in the same industry.
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 just above the Cost of Capital (WACC), so BCE-PR-A is still creating some value.
The number of shares outstanding for BCE-PR-A remains at a similar level compared to 1 year ago.
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 0.55. This is a bad value and indicates that BCE-PR-A is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.55, BCE-PR-A is doing good in the industry, outperforming 63.33% of the companies in the same industry.
The Debt to FCF ratio of BCE-PR-A is 11.06, which is on the high side as it means it would take BCE-PR-A, 11.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.06, BCE-PR-A is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
BCE-PR-A has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.95, BCE-PR-A is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.19
WACC4.25%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-A may have some problems paying its short term obligations.
BCE-PR-A has a worse Current ratio (0.64) than 63.33% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE-PR-A may have some problems paying its short term obligations.
The Quick ratio of BCE-PR-A (0.61) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.78%.
BCE-PR-A shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
Looking at the last year, BCE-PR-A shows a decrease in Revenue. The Revenue has decreased by -1.07% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-6.78%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%0.59%
3.2 Future
Based on estimates for the next years, BCE-PR-A will show a small growth in Earnings Per Share. The EPS will grow by 7.91% on average per year.
Based on estimates for the next years, BCE-PR-A will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
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.
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
The Price/Earnings ratio is 6.84, which indicates a rather cheap valuation of BCE-PR-A.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BCE-PR-A to the average of the S&P500 Index (26.51), we can say BCE-PR-A is valued rather cheaply.
BCE-PR-A is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
BCE-PR-A's Price/Forward Earnings ratio is in line with 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 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BCE-PR-A.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCE-PR-A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.09 | ||
| EV/EBITDA | 5.31 |
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
With a Yearly Dividend Yield of 6.38%, BCE-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.21, BCE-PR-A pays a bit more dividend than its industry peers.
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 | 6.38% |
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
898.21% of the earnings are spent on dividend by BCE-PR-A. This is not a sustainable payout ratio.
BCE-PR-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-A (8/8/2025, 7:00:00 PM)
19.56
+0.19 (+0.98%)
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 Cap18.03B
Analysts53.91
Price Target21.06 (7.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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)-1.33%
PT rev (3m)3.85%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.74 | ||
| P/FCF | 5.09 | ||
| P/OCF | 2.37 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.31 |
EPS(TTM)2.86
EY14.62%
EPS(NY)2.7
Fwd EY13.82%
FCF(TTM)3.84
FCFY19.66%
OCF(TTM)8.24
OCFY42.12%
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 | 0.55 |
F-Score6
WACC4.25%
ROIC/WACC1.19
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)-6.78%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%0.59%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
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%