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BCE INC (BCE-PR-I.CA) Stock Fundamental Analysis

TSX:BCE-PR-I - Toronto Stock Exchange - CA05534B7117 - Currency: CAD

16.65  +0.25 (+1.52%)

Fundamental Rating

5

BCE-PR-I gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Diversified Telecommunication Services industry. BCE-PR-I scores excellent on profitability, but there are concerns on its financial health. BCE-PR-I is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

BCE-PR-I had positive earnings in the past year.
BCE-PR-I had a positive operating cash flow in the past year.
In the past 5 years BCE-PR-I has always been profitable.
Each year in the past 5 years BCE-PR-I had a positive operating cash flow.
BCE-PR-I.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE-PR-I.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-I has a Return On Assets of 0.12%. This is in the better half of the industry: BCE-PR-I outperforms 72.41% of its industry peers.
Looking at the Return On Equity, with a value of 0.48%, BCE-PR-I is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.82%, BCE-PR-I is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-I is in line with the industry average of 6.94%.
The 3 year average ROIC (6.51%) for BCE-PR-I 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-I.CA Yearly ROA, ROE, ROICBCE-PR-I.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

The Profit Margin of BCE-PR-I (0.34%) is better than 72.41% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-I has declined.
BCE-PR-I's Operating Margin of 22.51% is fine compared to the rest of the industry. BCE-PR-I outperforms 75.86% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-I has remained more or less at the same level.
With an excellent Gross Margin value of 68.47%, BCE-PR-I belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
BCE-PR-I'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-I.CA Yearly Profit, Operating, Gross MarginsBCE-PR-I.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

3

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.
BCE-PR-I has about the same amout of shares outstanding than it did 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.
BCE-PR-I.CA Yearly Shares OutstandingBCE-PR-I.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
BCE-PR-I.CA Yearly Total Debt VS Total AssetsBCE-PR-I.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 0.51, we must say that BCE-PR-I is in the distress zone and has some risk of bankruptcy.
BCE-PR-I has a worse Altman-Z score (0.51) than 82.76% of its industry peers.
BCE-PR-I has a debt to FCF ratio of 13.29. This is a negative value and a sign of low solvency as BCE-PR-I would need 13.29 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 13.29, BCE-PR-I belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
BCE-PR-I has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.84, BCE-PR-I is doing good in the industry, outperforming 79.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Altman-Z 0.51
ROIC/WACC1.48
WACC4.6%
BCE-PR-I.CA Yearly LT Debt VS Equity VS FCFBCE-PR-I.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-I may have some problems paying its short term obligations.
BCE-PR-I's Current ratio of 0.62 is fine compared to the rest of the industry. BCE-PR-I outperforms 75.86% of its industry peers.
A Quick Ratio of 0.60 indicates that BCE-PR-I may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.60, BCE-PR-I belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.6
BCE-PR-I.CA Yearly Current Assets VS Current LiabilitesBCE-PR-I.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

3

3. Growth

3.1 Past

BCE-PR-I shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.75%.
The Earnings Per Share has been decreasing by -1.77% on average over the past years.
The Revenue has decreased by -0.73% in the past year.
The Revenue has been growing slightly by 1.01% on average over the past years.
EPS 1Y (TTM)-4.75%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%-1.79%

3.2 Future

The Earnings Per Share is expected to grow by 7.51% 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 2.95% yearly.
EPS Next Y-6.38%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
EPS Next 5Y7.51%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y2.95%

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.
BCE-PR-I.CA Yearly Revenue VS EstimatesBCE-PR-I.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-I.CA Yearly EPS VS EstimatesBCE-PR-I.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

8

4. Valuation

4.1 Price/Earnings Ratio

BCE-PR-I is valuated cheaply with a Price/Earnings ratio of 5.53.
BCE-PR-I's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-I is cheaper than 93.10% 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 28.35.
A Price/Forward Earnings ratio of 5.80 indicates a rather cheap valuation of BCE-PR-I.
BCE-PR-I's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCE-PR-I is cheaper than 93.10% of the companies in the same industry.
BCE-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.00, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.53
Fwd PE 5.8
BCE-PR-I.CA Price Earnings VS Forward Price EarningsBCE-PR-I.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BCE-PR-I is valued cheaper than 89.66% of the companies in the same industry.
BCE-PR-I's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BCE-PR-I is cheaper than 89.66% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.04
EV/EBITDA 4.92
BCE-PR-I.CA Per share dataBCE-PR-I.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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 -4.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.53%, 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 10.41.
Compared to an average S&P500 Dividend Yield of 2.28, BCE-PR-I pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.53%

5.2 History

The dividend of BCE-PR-I has a limited annual growth rate of 5.05%.
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)5.05%
Div Incr Years0
Div Non Decr Years4
BCE-PR-I.CA Yearly Dividends per shareBCE-PR-I.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

BCE-PR-I pays out 4482.14% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-I is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4482.14%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
BCE-PR-I.CA Yearly Income VS Free CF VS DividendBCE-PR-I.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-I.CA Dividend Payout.BCE-PR-I.CA Dividend Payout, showing the Payout Ratio.BCE-PR-I.CA Dividend Payout.PayoutRetained Earnings

BCE INC

TSX:BCE-PR-I (2/5/2025, 7:00:00 PM)

16.65

+0.25 (+1.52%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-06 2025-02-06/bmo
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.19B
Analysts54.78
Price Target17.91 (7.57%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.53%
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)4.54%
PT rev (3m)5.46%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.45%
Valuation
Industry RankSector Rank
PE 5.53
Fwd PE 5.8
P/S 0.62
P/FCF 5.04
P/OCF 2.02
P/B 0.86
P/tB N/A
EV/EBITDA 4.92
EPS(TTM)3.01
EY18.08%
EPS(NY)2.87
Fwd EY17.24%
FCF(TTM)3.31
FCFY19.86%
OCF(TTM)8.26
OCFY49.6%
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 0.51
F-Score6
WACC4.6%
ROIC/WACC1.48
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)-4.75%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%-7.41%
EPS Next Y-6.38%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
EPS Next 5Y7.51%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%-1.79%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y2.95%
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%