BCE INC (BCE-PR-I.CA) Stock Fundamental Analysis
Canada - TSX:BCE-PR-I - CA05534B7117
18.87 CAD
-0.22 (-1.15%)
We assign a fundamental rating of 5 out of 10 to BCE-PR-I. BCE-PR-I was compared to 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-I belongs to the best of the industry regarding profitability, there are concerns on its financial health. BCE-PR-I is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BCE-PR-I had positive earnings in the past year.
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's Return On Assets of 0.61% is fine compared to the rest of the industry. BCE-PR-I outperforms 76.67% of its industry peers.
BCE-PR-I's Return On Equity of 2.40% is fine compared to the rest of the industry. BCE-PR-I outperforms 76.67% of its industry peers.
BCE-PR-I's Return On Invested Capital of 5.04% is fine compared to the rest of the industry. BCE-PR-I outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 76.67% 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 76.67% 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 83.33% of its industry peers.
BCE-PR-I's Gross Margin has been stable in the last couple of years.
| 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.
BCE-PR-I has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE-PR-I has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that BCE-PR-I is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.56, BCE-PR-I is doing worse than 76.67% of the companies in the same industry.
BCE-PR-I has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as BCE-PR-I would need 9.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.25, BCE-PR-I is in the better half of the industry, outperforming 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.80, BCE-PR-I belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.56 |
ROIC/WACC1.18
WACC4.28%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE-PR-I may have some problems paying its short term obligations.
BCE-PR-I has a Current ratio of 0.61. This is in the better half of the industry: BCE-PR-I outperforms 76.67% of its industry peers.
BCE-PR-I has a Quick Ratio of 0.61. This is a bad value and indicates that BCE-PR-I is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BCE-PR-I (0.57) is better than 76.67% 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.
Looking at the last year, BCE-PR-I shows a decrease in Revenue. The Revenue has decreased by -0.66% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
The Earnings Per Share is expected to grow by 1.20% on average over the next years.
BCE-PR-I is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.08% yearly.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.08%
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
Based on the Price/Earnings ratio of 6.60, the valuation of BCE-PR-I can be described as very cheap.
BCE-PR-I's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-I is cheaper than 93.33% of the companies in the same industry.
BCE-PR-I's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 6.86 indicates a rather cheap valuation of BCE-PR-I.
Based on the Price/Forward Earnings ratio, BCE-PR-I is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
BCE-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.86 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-I indicates a rather cheap valuation: BCE-PR-I is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.33 | ||
| EV/EBITDA | 5.18 |
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 -3.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.46%, BCE-PR-I is a good candidate for dividend investing.
BCE-PR-I's Dividend Yield is slightly below the industry average, which is at 6.66.
BCE-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
5.2 History
The dividend of BCE-PR-I has a limited annual growth rate of 4.82%.
BCE-PR-I has paid a dividend for at least 10 years, which is 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
BCE-PR-I pays out 739.72% of its income as dividend. 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-4.86%
EPS Next 3Y-3.11%
TSX:BCE-PR-I (9/10/2025, 7:00:00 PM)
18.87
-0.22 (-1.15%)
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 Cap17.60B
Analysts55
Price Target19.65 (4.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
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)3.63%
PT rev (3m)-1.22%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)2.84%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.86 | ||
| P/S | 0.72 | ||
| P/FCF | 4.33 | ||
| P/OCF | 2.35 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)2.86
EY15.16%
EPS(NY)2.75
Fwd EY14.58%
FCF(TTM)4.36
FCFY23.08%
OCF(TTM)8.03
OCFY42.53%
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 | 0.56 |
F-Score5
WACC4.28%
ROIC/WACC1.18
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-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.08%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.66%
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%