BCE INC - BCECN 3.306 PERP (BCE-PR-K.CA) Stock Fundamental Analysis
TSX:BCE-PR-K - Toronto Stock Exchange - CA05534B6796 - Currency: CAD
Taking everything into account, BCE-PR-K scores 5 out of 10 in our fundamental rating. BCE-PR-K was compared to 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-K has a great profitability rating, there are some minor concerns on its financial health. BCE-PR-K is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-K was profitable.
BCE-PR-K had a positive operating cash flow in the past year.
BCE-PR-K had positive earnings in each of the past 5 years.
BCE-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-K has a better Return On Assets (0.54%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 2.26%, BCE-PR-K is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Return On Invested Capital of BCE-PR-K (5.04%) is better than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCE-PR-K is in line with the industry average of 5.41%.
The last Return On Invested Capital (5.04%) for BCE-PR-K is above the 3 year average (4.90%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 1.61%, BCE-PR-K is in the better half of the industry, outperforming 80.00% 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 of 22.74%. This is in the better half of the industry: BCE-PR-K outperforms 80.00% of its industry peers.
BCE-PR-K's Operating Margin has been stable in the last couple of years.
BCE-PR-K has a Gross Margin of 68.27%. This is amongst the best in the industry. BCE-PR-K outperforms 86.67% of its industry peers.
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.
The number of shares outstanding for BCE-PR-K has been increased compared to 5 years ago.
BCE-PR-K has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-K has an Altman-Z score of 0.54. This is a bad value and indicates that BCE-PR-K is not financially healthy and even has some risk of bankruptcy.
BCE-PR-K has a worse Altman-Z score (0.54) than 83.33% of its industry peers.
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's Debt to FCF ratio of 11.06 is amongst the best of the industry. BCE-PR-K outperforms 83.33% of its industry peers.
BCE-PR-K has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.95, BCE-PR-K belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.2
WACC4.19%
2.3 Liquidity
BCE-PR-K has a Current Ratio of 0.64. 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.
Looking at the Current ratio, with a value of 0.64, BCE-PR-K belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
BCE-PR-K has a Quick Ratio of 0.64. 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 Quick ratio of 0.61 is amongst the best of the industry. BCE-PR-K outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
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 -6.78%.
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 -1.07% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-6.78%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%0.59%
3.2 Future
The Earnings Per Share is expected to grow by 7.91% on average over the next years.
The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 6.51 indicates a rather cheap valuation of BCE-PR-K.
Based on the Price/Earnings ratio, BCE-PR-K is valued cheaper than 93.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. BCE-PR-K is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.88, 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 93.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, BCE-PR-K is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.51 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE-PR-K is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-K indicates a rather cheap valuation: BCE-PR-K is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The decent profitability rating of BCE-PR-K may justify a higher PE ratio.
BCE-PR-K's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.38%, 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 6.17.
BCE-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
5.2 History
The dividend of BCE-PR-K has a limited annual growth rate of 4.82%.
BCE-PR-K has been paying a dividend for at least 10 years, so it has 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
898.21% of the earnings are spent on dividend by BCE-PR-K. 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 (8/8/2025, 7:00:00 PM)
18.61
+0.26 (+1.42%)
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 Cap17.16B
Analysts53.91
Price Target19.75 (6.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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)9.87%
Min EPS beat(2)9.09%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)3.75%
Min EPS beat(4)-3.58%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)2.52%
EPS beat(16)10
Avg EPS beat(16)2.92%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1%
Revenue beat(16)2
Avg Revenue beat(16)-1.16%
PT rev (1m)0.17%
PT rev (3m)5.51%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.51 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.71 | ||
| P/FCF | 4.84 | ||
| P/OCF | 2.26 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.86
EY15.37%
EPS(NY)2.7
Fwd EY14.53%
FCF(TTM)3.84
FCFY20.66%
OCF(TTM)8.24
OCFY44.27%
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 | 0.54 |
F-Score6
WACC4.19%
ROIC/WACC1.2
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)-6.78%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%0.59%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
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%