BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-C - CA05534B7869
20.61 CAD
-0.09 (-0.43%)
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. While BCE-PR-C is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-C has a decent growth rate and is not valued too expensively. BCE-PR-C also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BCE-PR-C had positive earnings in the past year.
- In the past year BCE-PR-C had a positive cash flow from operations.
- In the past 5 years BCE-PR-C has always been profitable.
- BCE-PR-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCE-PR-C's Return On Assets of 7.85% is fine compared to the rest of the industry. BCE-PR-C outperforms 63.33% of its industry peers.
- BCE-PR-C has a Return On Equity of 27.48%. This is comparable to the rest of the industry: BCE-PR-C outperforms 56.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.52%, BCE-PR-C is in line with its industry, outperforming 46.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BCE-PR-C is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 4.52% |
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 Profit Margin of 25.21%. This is in the better half of the industry: BCE-PR-C outperforms 63.33% of its industry peers.
- In the last couple of years the Profit Margin of BCE-PR-C has declined.
- The Operating Margin of BCE-PR-C (22.38%) is comparable to the rest of the industry.
- BCE-PR-C's Operating Margin has been stable in the last couple of years.
- BCE-PR-C has a Gross Margin of 67.92%. This is comparable to the rest of the industry: BCE-PR-C outperforms 53.33% of its industry peers.
- BCE-PR-C's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-C is 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
- BCE-PR-C has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.60, we must say that BCE-PR-C is in the distress zone and has some risk of bankruptcy.
- BCE-PR-C has a Altman-Z score (0.60) which is comparable to the rest of the industry.
- The Debt to FCF ratio of BCE-PR-C is 10.36, which is on the high side as it means it would take BCE-PR-C, 10.36 years of fcf income to pay off all of its debts.
- BCE-PR-C has a Debt to FCF ratio (10.36) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.57 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 (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.04
WACC4.36%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE-PR-C may have some problems paying its short term obligations.
- BCE-PR-C has a Current ratio of 0.58. This is comparable to the rest of the industry: BCE-PR-C outperforms 46.67% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE-PR-C may have some problems paying its short term obligations.
- The Quick ratio of BCE-PR-C (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- The earnings per share for BCE-PR-C have decreased by -3.65% in the last year.
- BCE-PR-C shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- The Revenue has been growing slightly by 0.11% in the past year.
- 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)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
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 0.73% 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 1.65% yearly.
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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
- With a Price/Earnings ratio of 7.11, the valuation of BCE-PR-C can be described as very cheap.
- 63.33% of the companies in the same industry are more expensive than BCE-PR-C, based on the Price/Earnings ratio.
- BCE-PR-C's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 7.61 indicates a rather cheap valuation of BCE-PR-C.
- Based on the Price/Forward Earnings ratio, BCE-PR-C is valued a bit cheaper than 63.33% of the companies in the same industry.
- BCE-PR-C's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-C is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as BCE-PR-C.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.86 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
- BCE-PR-C's earnings are expected to decrease with -3.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.15%, BCE-PR-C is a good candidate for dividend investing.
- BCE-PR-C's Dividend Yield is a higher than the industry average which is at 5.16.
- Compared to an average S&P500 Dividend Yield of 1.82, BCE-PR-C pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
- The dividend of BCE-PR-C has a limited annual growth rate of 4.82%.
- BCE-PR-C has paid a dividend for at least 10 years, which is 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
- 43.52% of the earnings are spent on dividend by BCE-PR-C. This is a bit on the high side, but may be sustainable.
- The dividend of BCE-PR-C is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
BCE INC - BCECN 5.08 PERP / BCE-PR-C.CA FAQ
What is the ChartMill fundamental rating of BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BCE-PR-C.CA.
Can you provide the valuation status for BCE INC - BCECN 5.08 PERP?
ChartMill assigns a valuation rating of 5 / 10 to BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA). This can be considered as Fairly Valued.
How profitable is BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) stock?
BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) stock?
The Price/Earnings (PE) ratio for BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) is 7.11 and the Price/Book (PB) ratio is 0.86.
Can you provide the financial health for BCE-PR-C stock?
The financial health rating of BCE INC - BCECN 5.08 PERP (BCE-PR-C.CA) is 2 / 10.