BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) Stock Fundamental Analysis
TSX:BCE-PR-C - Toronto Stock Exchange - CA05534B7869 - Currency: CAD
Overall BCE-PR-C gets a fundamental rating of 4 out of 10. We evaluated BCE-PR-C against 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BCE-PR-C while its profitability can be described as average. BCE-PR-C is valued correctly, but it does not seem to be growing. BCE-PR-C also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-C was profitable.
In the past year BCE-PR-C had a positive cash flow from operations.
BCE-PR-C had positive earnings in each of the past 5 years.
BCE-PR-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-C has a worse Return On Assets (0.54%) than 60.00% of its industry peers.
BCE-PR-C has a worse Return On Equity (2.26%) than 60.00% of its industry peers.
BCE-PR-C has a worse Return On Invested Capital (5.04%) than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-C is in line with the industry average of 5.41%.
The last Return On Invested Capital (5.04%) for BCE-PR-C 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
BCE-PR-C has a worse Profit Margin (1.61%) than 60.00% of its industry peers.
BCE-PR-C's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 22.74%, BCE-PR-C is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BCE-PR-C has remained more or less at the same level.
BCE-PR-C has a Gross Margin of 68.27%. This is comparable to the rest of the industry: BCE-PR-C outperforms 46.67% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-C 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-C is still creating some value.
The number of shares outstanding for BCE-PR-C remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE-PR-C has more shares outstanding
The debt/assets ratio for BCE-PR-C is higher compared to a year ago.
2.2 Solvency
BCE-PR-C has an Altman-Z score of 0.52. This is a bad value and indicates that BCE-PR-C is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-C (0.52) is comparable to the rest of the industry.
The Debt to FCF ratio of BCE-PR-C is 11.06, which is on the high side as it means it would take BCE-PR-C, 11.06 years of fcf income to pay off all of its debts.
BCE-PR-C has a Debt to FCF ratio (11.06) which is in line with its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE-PR-C has dependencies on debt financing.
BCE-PR-C has a Debt to Equity ratio of 1.95. This is comparable to the rest of the industry: BCE-PR-C outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.52 |
ROIC/WACC1.24
WACC4.05%
2.3 Liquidity
BCE-PR-C has a Current Ratio of 0.64. This is a bad value and indicates that BCE-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-C's Current ratio of 0.64 is in line compared to the rest of the industry. BCE-PR-C outperforms 43.33% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE-PR-C may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, BCE-PR-C is in line with its industry, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-C shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.04%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
BCE-PR-C shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
Measured over the past years, BCE-PR-C shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-3.04%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-7.43%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-4.59%
3.2 Future
Based on estimates for the next years, BCE-PR-C will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
BCE-PR-C is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y2.25%
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 5.80 indicates a rather cheap valuation of BCE-PR-C.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-C is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.82. BCE-PR-C is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.41, which indicates a rather cheap valuation of BCE-PR-C.
BCE-PR-C's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BCE-PR-C to the average of the S&P500 Index (21.76), we can say BCE-PR-C is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 6.41 |
4.2 Price Multiples
BCE-PR-C's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-C is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
BCE-PR-C'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-C has a Yearly Dividend Yield of 5.79%, which is a nice return.
Compared to an average industry Dividend Yield of 5.68, BCE-PR-C pays a bit more dividend than its industry peers.
BCE-PR-C's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
The dividend of BCE-PR-C has a limited annual growth rate of 4.82%.
BCE-PR-C has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-C has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
BCE-PR-C pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-C 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-C (5/23/2025, 7:00:00 PM)
17.34
+0.1 (+0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.98B
Analysts51.82
Price Target20.15 (16.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.98%
Min EPS beat(2)6.87%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.71%
EPS beat(12)7
Avg EPS beat(12)2.21%
EPS beat(16)10
Avg EPS beat(16)2.69%
Revenue beat(2)1
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)2
Avg Revenue beat(16)-1.36%
PT rev (1m)5.25%
PT rev (3m)4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 6.41 | ||
| P/S | 0.66 | ||
| P/FCF | 4.51 | ||
| P/OCF | 2.1 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.11 |
EPS(TTM)2.99
EY17.24%
EPS(NY)2.7
Fwd EY15.59%
FCF(TTM)3.84
FCFY22.17%
OCF(TTM)8.24
OCFY47.52%
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 | 0.52 |
F-Score6
WACC4.05%
ROIC/WACC1.24
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)-3.04%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-7.43%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-4.59%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y2.25%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
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%