BCE INC - BCECN 3.306 PERP (BCE-PR-K.CA) Stock Fundamental Analysis
TSX:BCE-PR-K - Toronto Stock Exchange - CA05534B6796 - Currency: CAD
BCE-PR-K gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-K is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-K has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BCE-PR-K had positive earnings in the past year.
In the past year BCE-PR-K had a positive cash flow from operations.
In the past 5 years BCE-PR-K has always been profitable.
Each year in the past 5 years BCE-PR-K had a positive operating cash flow.
1.2 Ratios
BCE-PR-K has a Return On Assets (0.54%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.26%, BCE-PR-K is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of BCE-PR-K (5.04%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-K is in line with the industry average of 5.42%.
The 3 year average ROIC (4.90%) for BCE-PR-K is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| 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 Profit Margin value of 1.61%, BCE-PR-K perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BCE-PR-K's Profit Margin has declined in the last couple of years.
BCE-PR-K has a Operating Margin (22.74%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BCE-PR-K has remained more or less at the same level.
BCE-PR-K has a Gross Margin (68.27%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BCE-PR-K has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% |
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-K is still creating some value.
The number of shares outstanding for BCE-PR-K remains at a similar level compared to 1 year ago.
BCE-PR-K has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE-PR-K has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that BCE-PR-K is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.52, BCE-PR-K is in line with its industry, outperforming 46.67% of the companies in the same industry.
BCE-PR-K has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-K would need 11.06 years to pay back of all of its debts.
BCE-PR-K has a Debt to FCF ratio (11.06) which is comparable to the rest of the industry.
BCE-PR-K has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE-PR-K has a Debt to Equity ratio of 1.95. This is comparable to the rest of the industry: BCE-PR-K outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.52 |
ROIC/WACC1.19
WACC4.24%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-K may have some problems paying its short term obligations.
The Current ratio of BCE-PR-K (0.64) is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that BCE-PR-K may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, BCE-PR-K perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-K have decreased by -3.04% in the last year.
Measured over the past years, BCE-PR-K 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-K shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
BCE-PR-K shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)-3.04%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-7.43%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-4.59%
3.2 Future
BCE-PR-K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.71% yearly.
BCE-PR-K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
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.
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
The Price/Earnings ratio is 5.60, which indicates a rather cheap valuation of BCE-PR-K.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-K indicates a somewhat cheap valuation: BCE-PR-K is cheaper than 66.67% of the companies listed in the same industry.
BCE-PR-K is valuated cheaply when we compare the Price/Earnings ratio to 24.85, which is the current average of the S&P500 Index.
BCE-PR-K is valuated cheaply with a Price/Forward Earnings ratio of 6.20.
Based on the Price/Forward Earnings ratio, BCE-PR-K is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
BCE-PR-K's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-K indicates a somewhat cheap valuation: BCE-PR-K is cheaper than 63.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-K indicates a somewhat cheap valuation: BCE-PR-K is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-K'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-K has a Yearly Dividend Yield of 5.65%, which is a nice return.
BCE-PR-K's Dividend Yield is comparable with the industry average which is at 5.57.
BCE-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
5.2 History
The dividend of BCE-PR-K has a limited annual growth rate of 4.82%.
BCE-PR-K has paid a dividend for at least 10 years, which is a reliable track record.
BCE-PR-K 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-K pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
BCE-PR-K's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-K (5/14/2025, 7:00:00 PM)
16.75
-0.13 (-0.77%)
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 Cap15.44B
Analysts51.82
Price Target18.72 (11.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.98%
Min EPS beat(2)6.87%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.71%
EPS beat(12)7
Avg EPS beat(12)2.21%
EPS beat(16)10
Avg EPS beat(16)2.69%
Revenue beat(2)1
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)2
Avg Revenue beat(16)-1.36%
PT rev (1m)3.59%
PT rev (3m)7.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.63 | ||
| P/FCF | 4.36 | ||
| P/OCF | 2.03 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.06 |
EPS(TTM)2.99
EY17.85%
EPS(NY)2.7
Fwd EY16.14%
FCF(TTM)3.84
FCFY22.95%
OCF(TTM)8.24
OCFY49.19%
SpS26.39
BVpS18.8
TBVpS-10.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 9.46% | ||
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% | ||
| FCFM | 14.57% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 80.2% | ||
| Cap/Sales | 16.65% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 71.77% | ||
| Profit Quality | 906.39% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.52 |
F-Score6
WACC4.24%
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)-3.04%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-7.43%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-4.59%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y2.25%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y39.2%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-2.7%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%