BCE INC - BCECN 4.95 PERP (BCE-PR-J.CA) Stock Fundamental Analysis
TSX:BCE-PR-J - Toronto Stock Exchange - CA05534B6531 - Currency: CAD
Taking everything into account, BCE-PR-J scores 4 out of 10 in our fundamental rating. BCE-PR-J was compared to 29 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-J is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-J is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BCE-PR-J had positive earnings in the past year.
In the past year BCE-PR-J had a positive cash flow from operations.
Each year in the past 5 years BCE-PR-J has been profitable.
Each year in the past 5 years BCE-PR-J had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.22%, BCE-PR-J is in line with its industry, outperforming 41.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.95%, BCE-PR-J is in line with its industry, outperforming 41.38% of the companies in the same industry.
BCE-PR-J's Return On Invested Capital of 5.18% is in line compared to the rest of the industry. BCE-PR-J outperforms 44.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-J is in line with the industry average of 5.52%.
The last Return On Invested Capital (5.18%) for BCE-PR-J is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 5.18% |
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
BCE-PR-J has a Profit Margin (0.67%) which is in line with its industry peers.
BCE-PR-J's Profit Margin has declined in the last couple of years.
BCE-PR-J has a Operating Margin of 22.73%. This is comparable to the rest of the industry: BCE-PR-J outperforms 41.38% of its industry peers.
BCE-PR-J's Operating Margin has been stable in the last couple of years.
The Gross Margin of BCE-PR-J (68.43%) is comparable to the rest of the industry.
BCE-PR-J's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
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-J is still creating some value.
BCE-PR-J has about the same amout of shares outstanding than it did 1 year ago.
BCE-PR-J has more shares outstanding than it did 5 years ago.
BCE-PR-J has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-J has an Altman-Z score of 0.49. This is a bad value and indicates that BCE-PR-J is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, BCE-PR-J is in line with its industry, outperforming 51.72% of the companies in the same industry.
BCE-PR-J has a debt to FCF ratio of 14.54. This is a negative value and a sign of low solvency as BCE-PR-J would need 14.54 years to pay back of all of its debts.
The Debt to FCF ratio of BCE-PR-J (14.54) is comparable to the rest of the industry.
BCE-PR-J has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCE-PR-J (1.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.3
WACC3.97%
2.3 Liquidity
BCE-PR-J has a Current Ratio of 0.60. This is a bad value and indicates that BCE-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-J has a Current ratio (0.60) which is in line with its industry peers.
BCE-PR-J has a Quick Ratio of 0.60. This is a bad value and indicates that BCE-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, BCE-PR-J perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-J have decreased by -5.30% in the last year.
Measured over the past years, BCE-PR-J shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-J shows a decrease in Revenue. In the last year, the revenue decreased by -1.07%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
The Earnings Per Share is expected to grow by 6.71% on average over the next years.
Based on estimates for the next years, BCE-PR-J will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
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
BCE-PR-J is valuated cheaply with a Price/Earnings ratio of 5.43.
BCE-PR-J's Price/Earnings ratio is in line with the industry average.
BCE-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
With a Price/Forward Earnings ratio of 5.96, the valuation of BCE-PR-J can be described as very cheap.
BCE-PR-J's Price/Forward Earnings is on the same level as the industry average.
BCE-PR-J is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.96 |
4.2 Price Multiples
BCE-PR-J's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCE-PR-J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 5.04 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-J'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
BCE-PR-J has a Yearly Dividend Yield of 13.44%, which is a nice return.
BCE-PR-J's Dividend Yield is a higher than the industry average which is at 11.86.
Compared to an average S&P500 Dividend Yield of 2.45, BCE-PR-J pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
5.2 History
The dividend of BCE-PR-J has a limited annual growth rate of 4.82%.
BCE-PR-J has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-J has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
2331.29% of the earnings are spent on dividend by BCE-PR-J. This is not a sustainable payout ratio.
BCE-PR-J's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-J (5/1/2025, 7:00:00 PM)
16.5
+0.23 (+1.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.21B
Analysts51.82
Price Target18.43 (11.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)-1.05%
PT rev (3m)-1.75%
EPS NQ rev (1m)-3.08%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.43 | ||
| Fwd PE | 5.96 | ||
| P/S | 0.62 | ||
| P/FCF | 5.46 | ||
| P/OCF | 2.11 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.04 |
EPS(TTM)3.04
EY18.42%
EPS(NY)2.77
Fwd EY16.77%
FCF(TTM)3.02
FCFY18.31%
OCF(TTM)7.82
OCFY47.42%
SpS26.48
BVpS18.52
TBVpS-10.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 10.25% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.49 |
F-Score5
WACC3.97%
ROIC/WACC1.3
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%