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BCE INC - BCECN 4.94 PERP (BCE-PR-A.CA) Stock Fundamental Analysis

TSX:BCE-PR-A - Toronto Stock Exchange - CA05534B7943 - Currency: CAD

17.36  +0.02 (+0.12%)

Fundamental Rating

3

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. 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 it does not seem to be growing. BCE-PR-A also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

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.
Of the past 5 years BCE-PR-A 4 years were profitable.
Of the past 5 years BCE-PR-A 4 years had a positive operating cash flow.
BCE-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

1.2 Ratios

BCE-PR-A has a Return On Assets of 0.12%. This is in the lower half of the industry: BCE-PR-A underperforms 66.67% of its industry peers.
BCE-PR-A has a worse Return On Equity (0.48%) than 66.67% of its industry peers.
BCE-PR-A has a Return On Invested Capital of 6.82%. This is in the lower half of the industry: BCE-PR-A underperforms 60.00% 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 6.94%.
The 3 year average ROIC (6.51%) for BCE-PR-A is below the current ROIC(6.82%), indicating increased profibility in the last year.
Industry RankSector 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%
BCE-PR-A.CA Yearly ROA, ROE, ROICBCE-PR-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 0.34%, BCE-PR-A is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE-PR-A has declined.
The Operating Margin of BCE-PR-A (22.51%) is worse than 63.33% of its industry peers.
BCE-PR-A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 68.47%, BCE-PR-A is in line with its industry, outperforming 43.33% of the companies in the same industry.
BCE-PR-A's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
BCE-PR-A.CA Yearly Profit, Operating, Gross MarginsBCE-PR-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-A is creating some value.
BCE-PR-A has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
BCE-PR-A.CA Yearly Shares OutstandingBCE-PR-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
BCE-PR-A.CA Yearly Total Debt VS Total AssetsBCE-PR-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

BCE-PR-A has an Altman-Z score of 0.52. 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 0.52 is in line compared to the rest of the industry. BCE-PR-A outperforms 60.00% of its industry peers.
The Debt to FCF ratio of BCE-PR-A is 13.29, which is on the high side as it means it would take BCE-PR-A, 13.29 years of fcf income to pay off all of its debts.
BCE-PR-A has a Debt to FCF ratio (13.29) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.84 is on the high side and indicates that BCE-PR-A has dependencies on debt financing.
BCE-PR-A has a worse Debt to Equity ratio (1.84) than 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Altman-Z 0.52
ROIC/WACC1.4
WACC4.87%
BCE-PR-A.CA Yearly LT Debt VS Equity VS FCFBCE-PR-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.62 indicates that BCE-PR-A may have some problems paying its short term obligations.
BCE-PR-A's Current ratio of 0.62 is on the low side compared to the rest of the industry. BCE-PR-A is outperformed by 63.33% of its industry peers.
BCE-PR-A has a Quick Ratio of 0.62. 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.
BCE-PR-A has a Quick ratio (0.60) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.6
BCE-PR-A.CA Yearly Current Assets VS Current LiabilitesBCE-PR-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2

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 -4.86%.
Measured over the past years, BCE-PR-A shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.69% on average per year.
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%

3.2 Future

BCE-PR-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%

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.
BCE-PR-A.CA Yearly Revenue VS EstimatesBCE-PR-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
BCE-PR-A.CA Yearly EPS VS EstimatesBCE-PR-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.69, which indicates a rather cheap valuation of BCE-PR-A.
The rest of the industry has a similar Price/Earnings ratio as BCE-PR-A.
BCE-PR-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.19.
The Price/Forward Earnings ratio is 6.05, which indicates a rather cheap valuation of BCE-PR-A.
The rest of the industry has a similar Price/Forward Earnings ratio as BCE-PR-A.
BCE-PR-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.69
Fwd PE 6.05
BCE-PR-A.CA Price Earnings VS Forward Price EarningsBCE-PR-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

BCE-PR-A's Enterprise Value to EBITDA is on the same level as the industry average.
BCE-PR-A's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 5.25
EV/EBITDA 4.98
BCE-PR-A.CA Per share dataBCE-PR-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.77%
EPS Next 3Y2.65%

7

5. Dividend

5.1 Amount

BCE-PR-A has a Yearly Dividend Yield of 11.90%, which is a nice return.
Compared to an average industry Dividend Yield of 10.68, 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 2.30.
Industry RankSector Rank
Dividend Yield 11.9%

5.2 History

The dividend of BCE-PR-A has a limited annual growth rate of 5.05%.
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.05%
Div Incr Years2
Div Non Decr Years11
BCE-PR-A.CA Yearly Dividends per shareBCE-PR-A.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

4482.14% 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.
DP4482.14%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
BCE-PR-A.CA Yearly Income VS Free CF VS DividendBCE-PR-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
BCE-PR-A.CA Dividend Payout.BCE-PR-A.CA Dividend Payout, showing the Payout Ratio.BCE-PR-A.CA Dividend Payout.PayoutRetained Earnings

BCE INC - BCECN 4.94 PERP

TSX:BCE-PR-A (2/14/2025, 7:00:00 PM)

17.36

+0.02 (+0.12%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.84B
Analysts52.73
Price Target18.69 (7.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.9%
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years2
Div Non Decr Years11
Ex-Date04-30 2025-04-30 (0.30875)
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)-7.6%
PT rev (3m)0.22%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.05%
Valuation
Industry RankSector Rank
PE 5.69
Fwd PE 6.05
P/S 0.65
P/FCF 5.25
P/OCF 2.1
P/B 0.9
P/tB N/A
EV/EBITDA 4.98
EPS(TTM)3.05
EY17.57%
EPS(NY)2.87
Fwd EY16.54%
FCF(TTM)3.31
FCFY19.04%
OCF(TTM)8.26
OCFY47.57%
SpS26.81
BVpS19.38
TBVpS-10.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.52
F-Score6
WACC4.87%
ROIC/WACC1.4
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)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.7%
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%