BCE INC - BCECN 4.73 PERP (BCE-PR-N.CA) Stock Fundamental Analysis
TSX:BCE-PR-N - Toronto Stock Exchange - CA05534B6382 - Currency: CAD
Overall BCE-PR-N gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-N against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE-PR-N have multiple concerns. BCE-PR-N 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-N had positive earnings in the past year.
BCE-PR-N had a positive operating cash flow in the past year.
In the past 5 years BCE-PR-N has always been profitable.
Each year in the past 5 years BCE-PR-N had a positive operating cash flow.
1.2 Ratios
BCE-PR-N has a worse Return On Assets (0.54%) than 66.67% of its industry peers.
With a Return On Equity value of 2.26%, BCE-PR-N is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
BCE-PR-N has a worse Return On Invested Capital (5.04%) than 66.67% of its industry peers.
BCE-PR-N had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-N 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
BCE-PR-N has a Profit Margin of 1.61%. This is in the lower half of the industry: BCE-PR-N underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-N has declined.
BCE-PR-N has a Operating Margin of 22.74%. This is in the lower half of the industry: BCE-PR-N underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-N has remained more or less at the same level.
The Gross Margin of BCE-PR-N (68.27%) is worse than 60.00% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-N 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-N is still creating some value.
BCE-PR-N has about the same amout of shares outstanding than it did 1 year ago.
BCE-PR-N has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE-PR-N has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that BCE-PR-N is in the distress zone and has some risk of bankruptcy.
BCE-PR-N has a Altman-Z score of 0.53. This is in the better half of the industry: BCE-PR-N outperforms 63.33% of its industry peers.
BCE-PR-N has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-N would need 11.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.06, BCE-PR-N is in line with its industry, outperforming 43.33% of the companies in the same industry.
BCE-PR-N has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE-PR-N's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. BCE-PR-N is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.53 |
ROIC/WACC1.23
WACC4.1%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-N may have some problems paying its short term obligations.
BCE-PR-N's Current ratio of 0.64 is on the low side compared to the rest of the industry. BCE-PR-N is outperformed by 63.33% of its industry peers.
BCE-PR-N has a Quick Ratio of 0.64. This is a bad value and indicates that BCE-PR-N is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-N has a Quick ratio of 0.61. This is in the lower half of the industry: BCE-PR-N underperforms 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-N shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.27%.
BCE-PR-N shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
BCE-PR-N shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
Measured over the past years, BCE-PR-N shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
3.2 Future
Based on estimates for the next years, BCE-PR-N will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
BCE-PR-N 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.
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
Based on the Price/Earnings ratio of 5.99, the valuation of BCE-PR-N can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-N is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BCE-PR-N to the average of the S&P500 Index (26.20), we can say BCE-PR-N is valued rather cheaply.
The Price/Forward Earnings ratio is 6.67, which indicates a rather cheap valuation of BCE-PR-N.
BCE-PR-N's Price/Forward Earnings ratio is in line with the industry average.
BCE-PR-N is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BCE-PR-N.
BCE-PR-N's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-N'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
With a Yearly Dividend Yield of 5.87%, BCE-PR-N is a good candidate for dividend investing.
BCE-PR-N's Dividend Yield is a higher than the industry average which is at 5.74.
BCE-PR-N's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
5.2 History
The dividend of BCE-PR-N has a limited annual growth rate of 4.82%.
BCE-PR-N has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-N has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BCE-PR-N pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-N 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-N (5/29/2025, 7:00:00 PM)
18.04
0 (0%)
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 Cap16.63B
Analysts51.82
Price Target18.78 (4.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years3
Div Non Decr Years3
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%
PT rev (3m)-0.92%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 6.67 | ||
| P/S | 0.68 | ||
| P/FCF | 4.69 | ||
| P/OCF | 2.19 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)3.01
EY16.69%
EPS(NY)2.7
Fwd EY14.99%
FCF(TTM)3.84
FCFY21.31%
OCF(TTM)8.24
OCFY45.67%
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
WACC4.1%
ROIC/WACC1.23
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)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
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%-1.35%
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 Year91.5%
EBIT Next 3Y25.46%
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%