BCE INC - BCECN 6.538 PERP (BCE-PR-Q.CA) Stock Fundamental Analysis
TSX:BCE-PR-Q - Toronto Stock Exchange - CA05534B5962 - Currency: CAD
Overall BCE-PR-Q gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-Q against 26 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Q has a bad profitability rating. Also its financial health evaluation is rather negative. BCE-PR-Q has a expensive valuation and it also scores bad on growth. Finally BCE-PR-Q also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE-PR-Q had positive earnings in the past year.
BCE-PR-Q had a positive operating cash flow in the past year.
BCE-PR-Q had positive earnings in each of the past 5 years.
BCE-PR-Q had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-Q's Return On Assets of 0.54% is on the low side compared to the rest of the industry. BCE-PR-Q is outperformed by 80.00% of its industry peers.
BCE-PR-Q has a Return On Equity of 2.26%. This is amonst the worse of the industry: BCE-PR-Q underperforms 80.00% of its industry peers.
With a Return On Invested Capital value of 5.04%, BCE-PR-Q is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-Q is significantly below the industry average of 10.80%.
The last Return On Invested Capital (5.04%) for BCE-PR-Q 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
BCE-PR-Q has a Profit Margin of 1.61%. This is amonst the worse of the industry: BCE-PR-Q underperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-Q has declined.
The Operating Margin of BCE-PR-Q (22.74%) is worse than 80.00% of its industry peers.
BCE-PR-Q's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 68.27%, BCE-PR-Q is doing worse than 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of BCE-PR-Q 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCE-PR-Q is destroying value.
BCE-PR-Q has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE-PR-Q has more shares outstanding
Compared to 1 year ago, BCE-PR-Q has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that BCE-PR-Q is in the distress zone and has some risk of bankruptcy.
BCE-PR-Q's Altman-Z score of 0.59 is fine compared to the rest of the industry. BCE-PR-Q outperforms 80.00% of its industry peers.
BCE-PR-Q has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-Q would need 11.06 years to pay back of all of its debts.
BCE-PR-Q has a Debt to FCF ratio of 11.06. This is in the lower half of the industry: BCE-PR-Q underperforms 70.00% of its industry peers.
BCE-PR-Q has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCE-PR-Q (1.95) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.79
WACC6.35%
2.3 Liquidity
BCE-PR-Q has a Current Ratio of 0.64. This is a bad value and indicates that BCE-PR-Q is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-Q has a worse Current ratio (0.64) than 76.67% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE-PR-Q may have some problems paying its short term obligations.
The Quick ratio of BCE-PR-Q (0.61) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-Q shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.27%.
BCE-PR-Q shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
BCE-PR-Q shows a decrease in Revenue. In the last year, the revenue decreased by -1.23%.
The Revenue has been growing slightly by 0.51% on average over the past years.
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-Q will show a small growth in Earnings Per Share. The EPS will grow by 7.92% on average per year.
The Revenue is expected to grow by 1.90% on average over the next years.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
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
A Price/Earnings ratio of 7.97 indicates a rather cheap valuation of BCE-PR-Q.
BCE-PR-Q's Price/Earnings ratio is a bit more expensive when compared to the industry. BCE-PR-Q is more expensive than 66.67% of the companies in the same industry.
BCE-PR-Q is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.88 indicates a reasonable valuation of BCE-PR-Q.
Based on the Price/Forward Earnings ratio, BCE-PR-Q is valued a bit more expensive than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE-PR-Q to the average of the S&P500 Index (22.19), we can say BCE-PR-Q is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
BCE-PR-Q's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BCE-PR-Q is more expensive than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE-PR-Q is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.24 | ||
| EV/EBITDA | 5.72 |
4.3 Compensation for Growth
BCE-PR-Q'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-Q has a Yearly Dividend Yield of 6.75%, which is a nice return.
Compared to an average industry Dividend Yield of 20.03, BCE-PR-Q pays a better dividend. On top of this BCE-PR-Q pays more dividend than 93.33% of the companies listed in the same industry.
BCE-PR-Q's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
5.2 History
The dividend of BCE-PR-Q has a limited annual growth rate of 4.82%.
BCE-PR-Q has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-Q has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
BCE-PR-Q pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-Q 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-Q (6/20/2025, 7:00:00 PM)
24
-0.25 (-1.03%)
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 Cap22.12B
Analysts52.73
Price Target27.54 (14.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years2
Div Non Decr Years10
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)-0.46%
PT rev (3m)11.63%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.91 | ||
| P/FCF | 6.24 | ||
| P/OCF | 2.91 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.72 |
EPS(TTM)3.01
EY12.54%
EPS(NY)2.7
Fwd EY11.26%
FCF(TTM)3.84
FCFY16.02%
OCF(TTM)8.24
OCFY34.33%
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 | 0.59 |
F-Score6
WACC6.35%
ROIC/WACC0.79
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 5Y7.92%
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 5Y1.9%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y14.93%
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%