BCE INC (BCE-PR-I.CA) Stock Fundamental Analysis
Canada - TSX:BCE-PR-I - CA05534B7117
18.7 CAD
-0.06 (-0.32%)
We assign a fundamental rating of 5 out of 10 to BCE-PR-I. BCE-PR-I was compared to 31 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-I has a great profitability rating, there are quite some concerns on its financial health. BCE-PR-I is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-I was profitable.
In the past year BCE-PR-I had a positive cash flow from operations.
Each year in the past 5 years BCE-PR-I has been profitable.
Each year in the past 5 years BCE-PR-I had a positive operating cash flow.
1.2 Ratios
BCE-PR-I has a Return On Assets of 0.61%. This is in the better half of the industry: BCE-PR-I outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 2.40%, BCE-PR-I is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BCE-PR-I's Return On Invested Capital of 5.04% is amongst the best of the industry. BCE-PR-I outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCE-PR-I is in line with the industry average of 5.44%.
The 3 year average ROIC (4.90%) for BCE-PR-I is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| 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
With a decent Profit Margin value of 1.77%, BCE-PR-I is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE-PR-I has declined.
Looking at the Operating Margin, with a value of 22.50%, BCE-PR-I is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BCE-PR-I has remained more or less at the same level.
BCE-PR-I has a better Gross Margin (67.94%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-I has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
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-I is still creating some value.
The number of shares outstanding for BCE-PR-I remains at a similar level compared to 1 year ago.
The number of shares outstanding for BCE-PR-I has been increased compared to 5 years ago.
BCE-PR-I has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that BCE-PR-I is in the distress zone and has some risk of bankruptcy.
BCE-PR-I's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. BCE-PR-I is outperformed by 76.67% of its industry peers.
The Debt to FCF ratio of BCE-PR-I is 9.25, which is on the high side as it means it would take BCE-PR-I, 9.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.25, BCE-PR-I belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
BCE-PR-I has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
BCE-PR-I has a better Debt to Equity ratio (1.80) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.19
WACC4.25%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE-PR-I may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, BCE-PR-I is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that BCE-PR-I may have some problems paying its short term obligations.
BCE-PR-I's Quick ratio of 0.57 is fine compared to the rest of the industry. BCE-PR-I outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-I have decreased by -6.84% in the last year.
Measured over the past years, BCE-PR-I shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-I shows a decrease in Revenue. In the last year, the revenue decreased by -0.66%.
Measured over the past years, BCE-PR-I shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
3.2 Future
Based on estimates for the next years, BCE-PR-I will show a small growth in Earnings Per Share. The EPS will grow by 1.52% on average per year.
Based on estimates for the next years, BCE-PR-I will show a small growth in Revenue. The Revenue will grow by 2.40% on average per year.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
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.
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
BCE-PR-I is valuated cheaply with a Price/Earnings ratio of 6.54.
Based on the Price/Earnings ratio, BCE-PR-I is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.86, BCE-PR-I is valued rather cheaply.
A Price/Forward Earnings ratio of 6.81 indicates a rather cheap valuation of BCE-PR-I.
90.00% of the companies in the same industry are more expensive than BCE-PR-I, based on the Price/Forward Earnings ratio.
BCE-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
BCE-PR-I's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BCE-PR-I is cheaper than 86.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE-PR-I is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.29 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
The decent profitability rating of BCE-PR-I may justify a higher PE ratio.
A cheap valuation may be justified as BCE-PR-I's earnings are expected to decrease with -3.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
BCE-PR-I has a Yearly Dividend Yield of 4.48%, which is a nice return.
Compared to an average industry Dividend Yield of 4.61, BCE-PR-I is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, BCE-PR-I pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
The dividend of BCE-PR-I has a limited annual growth rate of 4.82%.
BCE-PR-I has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
739.72% of the earnings are spent on dividend by BCE-PR-I. This is not a sustainable payout ratio.
BCE-PR-I's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
TSX:BCE-PR-I (10/3/2025, 7:00:00 PM)
18.7
-0.06 (-0.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap17.44B
Analysts55
Price Target21.17 (13.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)12.85%
PT rev (3m)4.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 6.81 | ||
| P/S | 0.71 | ||
| P/FCF | 4.29 | ||
| P/OCF | 2.33 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.16 |
EPS(TTM)2.86
EY15.29%
EPS(NY)2.75
Fwd EY14.69%
FCF(TTM)4.36
FCFY23.29%
OCF(TTM)8.03
OCFY42.92%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.55 |
F-Score5
WACC4.25%
ROIC/WACC1.19
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%