BCE INC - BCECN 4.95 PERP (BCE-PR-D.CA) Stock Fundamental Analysis
TSX:BCE-PR-D - Toronto Stock Exchange - CA05534B6879 - Currency: CAD
Overall BCE-PR-D gets a fundamental rating of 4 out of 10. We evaluated BCE-PR-D against 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-D is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-D is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-D was profitable.
BCE-PR-D had a positive operating cash flow in the past year.
In the past 5 years BCE-PR-D has always been profitable.
Each year in the past 5 years BCE-PR-D had a positive operating cash flow.
1.2 Ratios
BCE-PR-D has a Return On Assets of 0.54%. This is comparable to the rest of the industry: BCE-PR-D outperforms 46.67% of its industry peers.
BCE-PR-D has a Return On Equity (2.26%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.04%, BCE-PR-D is in line with its industry, outperforming 46.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-D is in line with the industry average of 5.41%.
The last Return On Invested Capital (5.04%) for BCE-PR-D 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
Looking at the Profit Margin, with a value of 1.61%, BCE-PR-D is in line with its industry, outperforming 46.67% of the companies in the same industry.
BCE-PR-D's Profit Margin has declined in the last couple of years.
The Operating Margin of BCE-PR-D (22.74%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BCE-PR-D has remained more or less at the same level.
With a Gross Margin value of 68.27%, BCE-PR-D perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
BCE-PR-D's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCE-PR-D is destroying value.
BCE-PR-D has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE-PR-D has been increased compared to 5 years ago.
Compared to 1 year ago, BCE-PR-D has a worse debt to assets ratio.
2.2 Solvency
BCE-PR-D has an Altman-Z score of 0.53. This is a bad value and indicates that BCE-PR-D is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BCE-PR-D (0.53) is comparable to the rest of the industry.
BCE-PR-D has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-D would need 11.06 years to pay back of all of its debts.
BCE-PR-D has a Debt to FCF ratio of 11.06. This is comparable to the rest of the industry: BCE-PR-D outperforms 56.67% of its industry peers.
BCE-PR-D has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE-PR-D has a Debt to Equity ratio of 1.95. This is comparable to the rest of the industry: BCE-PR-D outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.82
WACC6.11%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-D may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, BCE-PR-D is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that BCE-PR-D may have some problems paying its short term obligations.
BCE-PR-D's Quick ratio of 0.61 is in line compared to the rest of the industry. BCE-PR-D outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-D shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.27%.
Measured over the past years, BCE-PR-D shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-D shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
Measured over the past years, BCE-PR-D shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
3.2 Future
The Earnings Per Share is expected to grow by 7.92% on average over the next years.
BCE-PR-D is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
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 5.94, which indicates a rather cheap valuation of BCE-PR-D.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-D indicates a somewhat cheap valuation: BCE-PR-D is cheaper than 63.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. BCE-PR-D is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.62, the valuation of BCE-PR-D can be described as very cheap.
Based on the Price/Forward Earnings ratio, BCE-PR-D is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, BCE-PR-D is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
BCE-PR-D's Enterprise Value to EBITDA is on the same level as the industry average.
BCE-PR-D's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-D's earnings are expected to decrease with -2.78% in the coming years.
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 6.75%, BCE-PR-D is a good candidate for dividend investing.
BCE-PR-D's Dividend Yield is a higher than the industry average which is at 5.70.
Compared to an average S&P500 Dividend Yield of 2.39, BCE-PR-D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
5.2 History
The dividend of BCE-PR-D has a limited annual growth rate of 4.82%.
BCE-PR-D 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-D pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
BCE-PR-D'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-D (6/13/2025, 7:00:00 PM)
17.89
+0.19 (+1.07%)
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 Cap16.49B
Analysts52.73
Price Target19.85 (10.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years0
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)8.37%
PT rev (3m)7.74%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.94 | ||
| Fwd PE | 6.62 | ||
| P/S | 0.68 | ||
| P/FCF | 4.65 | ||
| P/OCF | 2.17 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)3.01
EY16.83%
EPS(NY)2.7
Fwd EY15.11%
FCF(TTM)3.84
FCFY21.49%
OCF(TTM)8.24
OCFY46.05%
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 | 0.53 |
F-Score6
WACC6.11%
ROIC/WACC0.82
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)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y14.93%
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%