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BCE INC - BCECN 5.2 PERP (BCE-PR-H.CA) Stock Fundamental Analysis

TSX:BCE-PR-H - Toronto Stock Exchange - CA05534B7299 - Currency: CAD

17.39  +0.05 (+0.29%)

Fundamental Rating

3

Overall BCE-PR-H gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-H against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-H has a bad profitability rating. Also its financial health evaluation is rather negative. BCE-PR-H has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

BCE-PR-H had positive earnings in the past year.
In the past year BCE-PR-H had a positive cash flow from operations.
BCE-PR-H had positive earnings in 4 of the past 5 years.
Of the past 5 years BCE-PR-H 4 years had a positive operating cash flow.
BCE-PR-H.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE-PR-H.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

1.2 Ratios

BCE-PR-H's Return On Assets of 0.12% is on the low side compared to the rest of the industry. BCE-PR-H is outperformed by 63.33% of its industry peers.
The Return On Equity of BCE-PR-H (0.48%) is worse than 63.33% of its industry peers.
BCE-PR-H has a Return On Invested Capital (6.82%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-H is in line with the industry average of 6.94%.
The 3 year average ROIC (6.51%) for BCE-PR-H is below the current ROIC(6.82%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.12%
ROE 0.48%
ROIC 6.82%
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
BCE-PR-H.CA Yearly ROA, ROE, ROICBCE-PR-H.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 0.34%, BCE-PR-H is doing worse than 63.33% of the companies in the same industry.
BCE-PR-H's Profit Margin has declined in the last couple of years.
BCE-PR-H has a Operating Margin of 22.51%. This is in the lower half of the industry: BCE-PR-H underperforms 60.00% of its industry peers.
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 (68.47%) which is comparable to the rest of the industry.
BCE-PR-H's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.51%
PM (TTM) 0.34%
GM 68.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
BCE-PR-H.CA Yearly Profit, Operating, Gross MarginsBCE-PR-H.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-H is creating some value.
BCE-PR-H has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
BCE-PR-H.CA Yearly Shares OutstandingBCE-PR-H.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
BCE-PR-H.CA Yearly Total Debt VS Total AssetsBCE-PR-H.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 0.52, 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 (0.52) which is comparable to the rest of the industry.
BCE-PR-H has a debt to FCF ratio of 13.29. This is a negative value and a sign of low solvency as BCE-PR-H would need 13.29 years to pay back of all of its debts.
The Debt to FCF ratio of BCE-PR-H (13.29) is comparable to the rest of the industry.
BCE-PR-H has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
BCE-PR-H has a Debt to Equity ratio (1.84) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Altman-Z 0.52
ROIC/WACC1.4
WACC4.87%
BCE-PR-H.CA Yearly LT Debt VS Equity VS FCFBCE-PR-H.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.62 indicates that BCE-PR-H may have some problems paying its short term obligations.
BCE-PR-H's Current ratio of 0.62 is on the low side compared to the rest of the industry. BCE-PR-H is outperformed by 60.00% of its industry peers.
A Quick Ratio of 0.60 indicates that BCE-PR-H may have some problems paying its short term obligations.
BCE-PR-H has a Quick ratio (0.60) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.6
BCE-PR-H.CA Yearly Current Assets VS Current LiabilitesBCE-PR-H.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2

3. Growth

3.1 Past

BCE-PR-H shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
Measured over the past years, BCE-PR-H shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.69% on average per year.
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%

3.2 Future

The Earnings Per Share is expected to grow by 10.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%

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.
BCE-PR-H.CA Yearly Revenue VS EstimatesBCE-PR-H.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
BCE-PR-H.CA Yearly EPS VS EstimatesBCE-PR-H.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.70, the valuation of BCE-PR-H can be described as very cheap.
BCE-PR-H's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BCE-PR-H to the average of the S&P500 Index (30.43), we can say BCE-PR-H is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.06, the valuation of BCE-PR-H can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE-PR-H is on the same level as its industry peers.
BCE-PR-H's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
Industry RankSector Rank
PE 5.7
Fwd PE 6.06
BCE-PR-H.CA Price Earnings VS Forward Price EarningsBCE-PR-H.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

BCE-PR-H's Enterprise Value to EBITDA is on the same level as the industry average.
BCE-PR-H's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 5.26
EV/EBITDA 4.98
BCE-PR-H.CA Per share dataBCE-PR-H.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.77%
EPS Next 3Y2.65%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.90%, BCE-PR-H is a good candidate for dividend investing.
BCE-PR-H's Dividend Yield is a higher than the industry average which is at 10.68.
BCE-PR-H's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 11.9%

5.2 History

The dividend of BCE-PR-H has a limited annual growth rate of 5.05%.
BCE-PR-H has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-H has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.05%
Div Incr Years2
Div Non Decr Years2
BCE-PR-H.CA Yearly Dividends per shareBCE-PR-H.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

4482.14% 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.
DP4482.14%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
BCE-PR-H.CA Yearly Income VS Free CF VS DividendBCE-PR-H.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
BCE-PR-H.CA Dividend Payout.BCE-PR-H.CA Dividend Payout, showing the Payout Ratio.BCE-PR-H.CA Dividend Payout.PayoutRetained Earnings

BCE INC - BCECN 5.2 PERP

TSX:BCE-PR-H (2/18/2025, 7:00:00 PM)

17.39

+0.05 (+0.29%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.86B
Analysts52.73
Price Target18.97 (9.09%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.9%
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-31 2025-01-31 (0.11321)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-3.58%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-3.58%
Max EPS beat(4)2.82%
EPS beat(8)3
Avg EPS beat(8)0.54%
EPS beat(12)7
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)-3.79%
PT rev (3m)2.51%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.05%
Valuation
Industry RankSector Rank
PE 5.7
Fwd PE 6.06
P/S 0.65
P/FCF 5.26
P/OCF 2.11
P/B 0.9
P/tB N/A
EV/EBITDA 4.98
EPS(TTM)3.05
EY17.54%
EPS(NY)2.87
Fwd EY16.51%
FCF(TTM)3.31
FCFY19.01%
OCF(TTM)8.26
OCFY47.49%
SpS26.81
BVpS19.38
TBVpS-10.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.12%
ROE 0.48%
ROCE 9.4%
ROIC 6.82%
ROICexc 7.14%
ROICexgc 13.85%
OM 22.51%
PM (TTM) 0.34%
GM 68.47%
FCFM 12.33%
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
ROICexc(3y)6.59%
ROICexc(5y)6.91%
ROICexgc(3y)12.01%
ROICexgc(5y)12.54%
ROCE(3y)9.27%
ROCE(5y)9.8%
ROICexcg growth 3Y-0.73%
ROICexcg growth 5Y-3.96%
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-3.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Debt/EBITDA 3.09
Cap/Depr 89.57%
Cap/Sales 18.47%
Interest Coverage 3.25
Cash Conversion 71.41%
Profit Quality 3590.48%
Current Ratio 0.62
Quick Ratio 0.6
Altman-Z 0.52
F-Score6
WACC4.87%
ROIC/WACC1.4
Cap/Depr(3y)103.5%
Cap/Depr(5y)99.32%
Cap/Sales(3y)20.39%
Cap/Sales(5y)19.26%
Profit Quality(3y)126.35%
Profit Quality(5y)130.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.7%
FCF growth 1Y-14.34%
FCF growth 3Y-5.44%
FCF growth 5Y-2.5%
OCF growth 1Y-6.43%
OCF growth 3Y0.06%
OCF growth 5Y1.03%