BCE INC - BCECN 2.939 PERP (BCE-PR-M.CA) Stock Fundamental Analysis
TSX:BCE-PR-M - Toronto Stock Exchange - CA05534B6465 - Currency: CAD
Overall BCE-PR-M gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-M against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE-PR-M have multiple concerns. BCE-PR-M has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-M was profitable.
In the past year BCE-PR-M had a positive cash flow from operations.
In the past 5 years BCE-PR-M has always been profitable.
BCE-PR-M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BCE-PR-M (0.54%) is worse than 66.67% of its industry peers.
The Return On Equity of BCE-PR-M (2.26%) is worse than 66.67% of its industry peers.
With a Return On Invested Capital value of 5.04%, BCE-PR-M is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for BCE-PR-M is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-M 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-M is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
BCE-PR-M's Profit Margin has declined in the last couple of years.
BCE-PR-M has a worse Operating Margin (22.74%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-M has remained more or less at the same level.
BCE-PR-M's Gross Margin of 68.27% is on the low side compared to the rest of the industry. BCE-PR-M is outperformed by 60.00% of its industry peers.
BCE-PR-M's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-M is creating some value.
BCE-PR-M has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE-PR-M has more shares outstanding
Compared to 1 year ago, BCE-PR-M has a worse debt to assets ratio.
2.2 Solvency
BCE-PR-M has an Altman-Z score of 0.53. This is a bad value and indicates that BCE-PR-M is not financially healthy and even has some risk of bankruptcy.
BCE-PR-M has a better Altman-Z score (0.53) than 63.33% of its industry peers.
The Debt to FCF ratio of BCE-PR-M is 11.06, which is on the high side as it means it would take BCE-PR-M, 11.06 years of fcf income to pay off all of its debts.
BCE-PR-M has a Debt to FCF ratio (11.06) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE-PR-M has dependencies on debt financing.
BCE-PR-M has a worse Debt to Equity ratio (1.95) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC1.24
WACC4.07%
2.3 Liquidity
BCE-PR-M has a Current Ratio of 0.64. This is a bad value and indicates that BCE-PR-M is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BCE-PR-M (0.64) is worse than 63.33% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE-PR-M may have some problems paying its short term obligations.
BCE-PR-M has a worse Quick ratio (0.61) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-M shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.04%.
Measured over the past years, BCE-PR-M 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-M shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
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-M 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-M 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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-M is valuated cheaply with a Price/Earnings ratio of 5.89.
BCE-PR-M's Price/Earnings is on the same level as the industry average.
BCE-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.51 indicates a rather cheap valuation of BCE-PR-M.
BCE-PR-M's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BCE-PR-M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
BCE-PR-M's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-M is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 5.14 |
4.3 Compensation for Growth
BCE-PR-M'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
BCE-PR-M has a Yearly Dividend Yield of 5.79%, which is a nice return.
BCE-PR-M's Dividend Yield is a higher than the industry average which is at 5.68.
BCE-PR-M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
The dividend of BCE-PR-M has a limited annual growth rate of 4.82%.
BCE-PR-M has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-M has decreased its dividend recently.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
898.21% of the earnings are spent on dividend by BCE-PR-M. This is not a sustainable payout ratio.
The dividend of BCE-PR-M is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-M (5/22/2025, 7:00:00 PM)
17.61
-0.02 (-0.11%)
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 Cap16.23B
Analysts51.82
Price Target19.7 (11.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years1
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)6.38%
PT rev (3m)7.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0%
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 | 5.89 | ||
| Fwd PE | 6.51 | ||
| P/S | 0.67 | ||
| P/FCF | 4.58 | ||
| P/OCF | 2.14 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.14 |
EPS(TTM)2.99
EY16.98%
EPS(NY)2.7
Fwd EY15.35%
FCF(TTM)3.84
FCFY21.83%
OCF(TTM)8.24
OCFY46.79%
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 | 0.53 |
F-Score6
WACC4.07%
ROIC/WACC1.24
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%