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BCE INC - BCECN 3.306 PERP (BCE-PR-K.CA) Stock Fundamental Analysis

TSX:BCE-PR-K - Toronto Stock Exchange - CA05534B6796 - Currency: CAD

16.57  +0.01 (+0.06%)

Fundamental Rating

5

Overall BCE-PR-K gets a fundamental rating of 5 out of 10. We evaluated BCE-PR-K against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-K has an excellent profitability rating, but there are some minor concerns on its financial health. BCE-PR-K has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

7

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.
BCE-PR-K had positive earnings in 4 of the past 5 years.
Of the past 5 years BCE-PR-K 4 years had a positive operating cash flow.
BCE-PR-K.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE-PR-K.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

With a decent Return On Assets value of 0.12%, BCE-PR-K is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.48%, BCE-PR-K is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.82%, BCE-PR-K belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
BCE-PR-K had an Average Return On Invested Capital over the past 3 years of 6.51%. This is in line with the industry average of 6.94%.
The last Return On Invested Capital (6.82%) for BCE-PR-K is above the 3 year average (6.51%), which is a sign of increasing profitability.
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-K.CA Yearly ROA, ROE, ROICBCE-PR-K.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

BCE-PR-K has a Profit Margin of 0.34%. This is in the better half of the industry: BCE-PR-K outperforms 80.00% of its industry peers.
BCE-PR-K's Profit Margin has declined in the last couple of years.
BCE-PR-K has a Operating Margin of 22.51%. This is amongst the best in the industry. BCE-PR-K outperforms 83.33% of its industry peers.
BCE-PR-K's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 68.47%, BCE-PR-K belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
BCE-PR-K'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-K.CA Yearly Profit, Operating, Gross MarginsBCE-PR-K.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-K is creating some value.
BCE-PR-K has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
BCE-PR-K.CA Yearly Shares OutstandingBCE-PR-K.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
BCE-PR-K.CA Yearly Total Debt VS Total AssetsBCE-PR-K.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-K is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.51, BCE-PR-K is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
BCE-PR-K has a debt to FCF ratio of 13.29. This is a negative value and a sign of low solvency as BCE-PR-K would need 13.29 years to pay back of all of its debts.
BCE-PR-K has a Debt to FCF ratio of 13.29. This is amongst the best in the industry. BCE-PR-K outperforms 93.33% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that BCE-PR-K has dependencies on debt financing.
The Debt to Equity ratio of BCE-PR-K (1.84) is better than 86.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Altman-Z 0.51
ROIC/WACC1.4
WACC4.86%
BCE-PR-K.CA Yearly LT Debt VS Equity VS FCFBCE-PR-K.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

BCE-PR-K has a Current Ratio of 0.62. This is a bad value and indicates that BCE-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-K's Current ratio of 0.62 is amongst the best of the industry. BCE-PR-K outperforms 83.33% of its industry peers.
BCE-PR-K has a Quick Ratio of 0.62. This is a bad value and indicates that BCE-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-K has a Quick ratio of 0.60. This is amongst the best in the industry. BCE-PR-K outperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.6
BCE-PR-K.CA Yearly Current Assets VS Current LiabilitesBCE-PR-K.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

2

3. Growth

3.1 Past

BCE-PR-K shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
BCE-PR-K shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.69% yearly.
EPS 1Y (TTM)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%

3.2 Future

BCE-PR-K is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
BCE-PR-K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%

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

The Price/Earnings ratio is 5.43, which indicates a rather cheap valuation of BCE-PR-K.
BCE-PR-K's Price/Earnings ratio is rather cheap when compared to the industry. BCE-PR-K is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCE-PR-K to the average of the S&P500 Index (30.43), we can say BCE-PR-K is valued rather cheaply.
The Price/Forward Earnings ratio is 5.77, which indicates a rather cheap valuation of BCE-PR-K.
BCE-PR-K's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCE-PR-K is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. BCE-PR-K is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.43
Fwd PE 5.77
BCE-PR-K.CA Price Earnings VS Forward Price EarningsBCE-PR-K.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BCE-PR-K is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
96.67% of the companies in the same industry are more expensive than BCE-PR-K, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.01
EV/EBITDA 4.91
BCE-PR-K.CA Per share dataBCE-PR-K.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-K may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.77%
EPS Next 3Y2.65%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.90%, BCE-PR-K is a good candidate for dividend investing.
BCE-PR-K's Dividend Yield is slightly below the industry average, which is at 10.68.
BCE-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 11.9%

5.2 History

The dividend of BCE-PR-K has a limited annual growth rate of 5.05%.
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)5.05%
Div Incr Years0
Div Non Decr Years4
BCE-PR-K.CA Yearly Dividends per shareBCE-PR-K.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

4482.14% of the earnings are spent on dividend by BCE-PR-K. This is not a sustainable payout ratio.
The dividend of BCE-PR-K is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4482.14%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
BCE-PR-K.CA Yearly Income VS Free CF VS DividendBCE-PR-K.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-K.CA Dividend Payout.BCE-PR-K.CA Dividend Payout, showing the Payout Ratio.BCE-PR-K.CA Dividend Payout.PayoutRetained Earnings

BCE INC - BCECN 3.306 PERP

TSX:BCE-PR-K (2/18/2025, 7:00:00 PM)

16.57

+0.01 (+0.06%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap15.12B
Analysts52.73
Price Target17.49 (5.55%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.9%
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years0
Div Non Decr Years4
Ex-Date02-28 2025-02-28 (0.206625)
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)-3.18%
PT rev (3m)6.51%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.05%
Valuation
Industry RankSector Rank
PE 5.43
Fwd PE 5.77
P/S 0.62
P/FCF 5.01
P/OCF 2.01
P/B 0.86
P/tB N/A
EV/EBITDA 4.91
EPS(TTM)3.05
EY18.41%
EPS(NY)2.87
Fwd EY17.33%
FCF(TTM)3.31
FCFY19.95%
OCF(TTM)8.26
OCFY49.84%
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
WACC4.86%
ROIC/WACC1.4
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)-4.86%
EPS 3Y-1.44%
EPS 5Y-2.69%
EPS Q2Q%5.8%
EPS Next Y-6%
EPS Next 2Y-3.77%
EPS Next 3Y2.65%
EPS Next 5Y10.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.81%
Revenue Next Year0.44%
Revenue Next 2Y1.51%
Revenue Next 3Y3.85%
Revenue Next 5Y4.15%
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%