BCE INC - BCECN 4.7 PERP (BCE-PR-B.CA) Stock Fundamental Analysis
Canada - TSX:BCE-PR-B - CA05534B6952
19.15 CAD
+0.09 (+0.47%)
Taking everything into account, BCE-PR-B scores 4 out of 10 in our fundamental rating. BCE-PR-B was compared to 31 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-B is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-B has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BCE-PR-B had positive earnings in the past year.
BCE-PR-B had a positive operating cash flow in the past year.
BCE-PR-B had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE-PR-B had a positive operating cash flow.
1.2 Ratios
BCE-PR-B has a Return On Assets of 0.61%. This is comparable to the rest of the industry: BCE-PR-B outperforms 58.06% of its industry peers.
The Return On Equity of BCE-PR-B (2.40%) is comparable to the rest of the industry.
BCE-PR-B's Return On Invested Capital of 5.04% is fine compared to the rest of the industry. BCE-PR-B outperforms 61.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-B is in line with the industry average of 5.44%.
The last Return On Invested Capital (5.04%) for BCE-PR-B 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-B has a Profit Margin (1.77%) which is comparable to the rest of the industry.
BCE-PR-B's Profit Margin has declined in the last couple of years.
BCE-PR-B has a Operating Margin (22.50%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BCE-PR-B has remained more or less at the same level.
Looking at the Gross Margin, with a value of 67.94%, BCE-PR-B is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
BCE-PR-B'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE-PR-B is still creating some value.
The number of shares outstanding for BCE-PR-B remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE-PR-B has more shares outstanding
The debt/assets ratio for BCE-PR-B is higher compared to a year ago.
2.2 Solvency
BCE-PR-B has an Altman-Z score of 0.56. This is a bad value and indicates that BCE-PR-B is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.56, BCE-PR-B is in line with its industry, outperforming 41.94% of the companies in the same industry.
The Debt to FCF ratio of BCE-PR-B is 9.25, which is on the high side as it means it would take BCE-PR-B, 9.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BCE-PR-B (9.25) is better than 61.29% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE-PR-B has dependencies on debt financing.
BCE-PR-B's Debt to Equity ratio of 1.80 is fine compared to the rest of the industry. BCE-PR-B outperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.56 |
ROIC/WACC1.2
WACC4.21%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE-PR-B may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, BCE-PR-B is in line with its industry, outperforming 58.06% of the companies in the same industry.
BCE-PR-B has a Quick Ratio of 0.61. This is a bad value and indicates that BCE-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-B's Quick ratio of 0.57 is in line compared to the rest of the industry. BCE-PR-B outperforms 58.06% 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-B have decreased by -6.84% in the last year.
Measured over the past years, BCE-PR-B shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-B shows a decrease in Revenue. In the last year, the revenue decreased by -0.66%.
Measured over the past years, BCE-PR-B shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
BCE-PR-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.52% yearly.
BCE-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BCE-PR-B is valuated cheaply with a Price/Earnings ratio of 6.70.
BCE-PR-B's Price/Earnings ratio is a bit cheaper when compared to the industry. BCE-PR-B is cheaper than 74.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, BCE-PR-B is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.97, the valuation of BCE-PR-B can be described as very cheap.
Based on the Price/Forward Earnings ratio, BCE-PR-B is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, BCE-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
67.74% of the companies in the same industry are more expensive than BCE-PR-B, based on the Enterprise Value to EBITDA ratio.
67.74% of the companies in the same industry are more expensive than BCE-PR-B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.4 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
The decent profitability rating of BCE-PR-B may justify a higher PE ratio.
BCE-PR-B's earnings are expected to decrease with -3.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
BCE-PR-B has a Yearly Dividend Yield of 5.26%, which is a nice return.
BCE-PR-B's Dividend Yield is comparable with the industry average which is at 5.26.
BCE-PR-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
The dividend of BCE-PR-B has a limited annual growth rate of 4.82%.
BCE-PR-B has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BCE-PR-B pays out 739.72% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
TSX:BCE-PR-B (10/22/2025, 7:00:00 PM)
19.15
+0.09 (+0.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap17.86B
Revenue(TTM)24.41B
Net Income(TTM)433.00M
Analysts55
Price Target21.4 (11.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years0
Div Non Decr Years0
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)4.28%
PT rev (3m)3.86%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.73 | ||
| P/FCF | 4.4 | ||
| P/OCF | 2.39 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.2 |
EPS(TTM)2.86
EY14.93%
EPS(NY)2.75
Fwd EY14.34%
FCF(TTM)4.36
FCFY22.75%
OCF(TTM)8.03
OCFY41.91%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Graham Number35.31
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%
ROICexgc growth 3Y1.14%
ROICexgc 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 | 0.56 |
F-Score5
WACC4.21%
ROIC/WACC1.2
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-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
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%