BCE INC - BCECN 4.73 PERP (BCE-PR-N.CA) Stock Fundamental Analysis
TSX:BCE-PR-N - Toronto Stock Exchange - CA05534B6382 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BCE-PR-N. BCE-PR-N was compared to 29 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-N is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year BCE-PR-N was profitable.
BCE-PR-N had a positive operating cash flow in the past year.
Each year in the past 5 years BCE-PR-N has been profitable.
In the past 5 years BCE-PR-N always reported a positive cash flow from operatings.
1.2 Ratios
BCE-PR-N has a Return On Assets of 0.22%. This is comparable to the rest of the industry: BCE-PR-N outperforms 41.38% of its industry peers.
With a Return On Equity value of 0.95%, BCE-PR-N perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
BCE-PR-N has a Return On Invested Capital (5.18%) which is comparable to the rest of the industry.
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 5.54%.
The last Return On Invested Capital (5.18%) for BCE-PR-N is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 5.18% |
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
The Profit Margin of BCE-PR-N (0.67%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BCE-PR-N has declined.
BCE-PR-N's Operating Margin of 22.73% is in line compared to the rest of the industry. BCE-PR-N outperforms 41.38% 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.
BCE-PR-N has a Gross Margin (68.43%) which is in line with its industry peers.
BCE-PR-N's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
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.
The number of shares outstanding for BCE-PR-N remains at a similar level compared to 1 year ago.
BCE-PR-N has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BCE-PR-N is higher compared to a year ago.
2.2 Solvency
BCE-PR-N has an Altman-Z score of 0.49. This is a bad value and indicates that BCE-PR-N is not financially healthy and even has some risk of bankruptcy.
BCE-PR-N has a Altman-Z score of 0.49. This is comparable to the rest of the industry: BCE-PR-N outperforms 55.17% of its industry peers.
The Debt to FCF ratio of BCE-PR-N is 14.54, which is on the high side as it means it would take BCE-PR-N, 14.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.54, BCE-PR-N is in line with its industry, outperforming 51.72% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE-PR-N has dependencies on debt financing.
BCE-PR-N's Debt to Equity ratio of 1.92 is in line compared to the rest of the industry. BCE-PR-N outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.3
WACC3.98%
2.3 Liquidity
BCE-PR-N has a Current Ratio of 0.60. 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.
The Current ratio of BCE-PR-N (0.60) is comparable to the rest of the industry.
A Quick Ratio of 0.57 indicates that BCE-PR-N may have some problems paying its short term obligations.
BCE-PR-N has a Quick ratio of 0.57. This is comparable to the rest of the industry: BCE-PR-N outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-N have decreased by -5.30% in the last year.
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 -1.07%.
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
BCE-PR-N 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-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 Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
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
With a Price/Earnings ratio of 5.46, the valuation of BCE-PR-N can be described as very cheap.
BCE-PR-N's Price/Earnings is on the same level as the industry average.
BCE-PR-N is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.00, the valuation of BCE-PR-N can be described as very cheap.
BCE-PR-N's Price/Forward Earnings is on the same level as the industry average.
BCE-PR-N is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-N is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BCE-PR-N.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | 5.04 |
4.3 Compensation for Growth
BCE-PR-N'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-N has a Yearly Dividend Yield of 13.44%, which is a nice return.
Compared to an average industry Dividend Yield of 11.56, BCE-PR-N pays a bit more dividend than its industry peers.
BCE-PR-N's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
5.2 History
The dividend of BCE-PR-N has a limited annual growth rate of 4.82%.
BCE-PR-N has paid a dividend for at least 10 years, which is 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 2331.29% 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.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-N (5/2/2025, 7:00:00 PM)
16.59
+0.01 (+0.06%)
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 Cap15.29B
Analysts51.82
Price Target18.78 (13.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)1.4%
PT rev (3m)-4.84%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 6 | ||
| P/S | 0.63 | ||
| P/FCF | 5.49 | ||
| P/OCF | 2.12 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.04 |
EPS(TTM)3.04
EY18.32%
EPS(NY)2.77
Fwd EY16.68%
FCF(TTM)3.02
FCFY18.21%
OCF(TTM)7.82
OCFY47.17%
SpS26.48
BVpS18.52
TBVpS-10.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 10.25% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
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-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.49 |
F-Score5
WACC3.98%
ROIC/WACC1.3
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%