BCE INC - BCECN 4.95 PERP (BCE-PR-H.CA) Stock Fundamental Analysis
TSX:BCE-PR-H - Toronto Stock Exchange - CA05534B7299 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BCE-PR-H. BCE-PR-H was compared to 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-H is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-H has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-H was profitable.
In the past year BCE-PR-H had a positive cash flow from operations.
Each year in the past 5 years BCE-PR-H has been profitable.
Each year in the past 5 years BCE-PR-H had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BCE-PR-H (0.54%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.26%, BCE-PR-H is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.04%, BCE-PR-H is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-H is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-H is below the current ROIC(5.04%), indicating increased profibility in the last year.
| 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-H is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE-PR-H has declined.
Looking at the Operating Margin, with a value of 22.74%, BCE-PR-H is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BCE-PR-H has remained more or less at the same level.
BCE-PR-H has a Gross Margin (68.27%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BCE-PR-H 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
BCE-PR-H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BCE-PR-H has about the same amount of shares outstanding.
The number of shares outstanding for BCE-PR-H has been increased compared to 5 years ago.
The debt/assets ratio for BCE-PR-H is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that BCE-PR-H is in the distress zone and has some risk of bankruptcy.
BCE-PR-H has a Altman-Z score (0.53) which is in line with its industry peers.
BCE-PR-H has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-H would need 11.06 years to pay back of all of its debts.
BCE-PR-H has a Debt to FCF ratio of 11.06. This is comparable to the rest of the industry: BCE-PR-H outperforms 60.00% of its industry peers.
BCE-PR-H has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.95, BCE-PR-H is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.82
WACC6.12%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-H may have some problems paying its short term obligations.
The Current ratio of BCE-PR-H (0.64) is comparable to the rest of the industry.
BCE-PR-H has a Quick Ratio of 0.64. This is a bad value and indicates that BCE-PR-H is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BCE-PR-H (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-H have decreased by -2.27% in the last year.
Measured over the past years, BCE-PR-H shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
Looking at the last year, BCE-PR-H shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
BCE-PR-H is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.91% yearly.
BCE-PR-H is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.89%
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
The Price/Earnings ratio is 6.02, which indicates a rather cheap valuation of BCE-PR-H.
Based on the Price/Earnings ratio, BCE-PR-H is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, BCE-PR-H is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.70, the valuation of BCE-PR-H can be described as very cheap.
BCE-PR-H's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCE-PR-H is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE-PR-H to the average of the S&P500 Index (21.90), we can say BCE-PR-H is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 6.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-H indicates a somewhat cheap valuation: BCE-PR-H is cheaper than 63.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-H indicates a somewhat cheap valuation: BCE-PR-H is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.71 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-H'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 6.62%, BCE-PR-H is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, BCE-PR-H pays a bit more dividend than its industry peers.
BCE-PR-H's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
5.2 History
The dividend of BCE-PR-H has a limited annual growth rate of 4.82%.
BCE-PR-H 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
898.21% of the earnings are spent on dividend by BCE-PR-H. This is not a sustainable payout ratio.
The dividend of BCE-PR-H 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-H (7/3/2025, 7:00:00 PM)
18.11
0 (0%)
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 Cap16.69B
Analysts52.73
Price Target20.66 (14.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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)5.42%
PT rev (3m)10.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 6.7 | ||
| P/S | 0.69 | ||
| P/FCF | 4.71 | ||
| P/OCF | 2.2 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)3.01
EY16.62%
EPS(NY)2.7
Fwd EY14.93%
FCF(TTM)3.84
FCFY21.23%
OCF(TTM)8.24
OCFY45.49%
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
WACC6.12%
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 5Y7.91%
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 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
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%