BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE-PR-R - CA05534B7034
20.28 CAD
+0.03 (+0.15%)
We assign a fundamental rating of 5 out of 10 to BCE-PR-R. BCE-PR-R was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-R has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BCE-PR-R.
1. Profitability
1.1 Basic Checks
- BCE-PR-R had positive earnings in the past year.
- In the past year BCE-PR-R had a positive cash flow from operations.
- Each year in the past 5 years BCE-PR-R has been profitable.
- In the past 5 years BCE-PR-R always reported a positive cash flow from operatings.
1.2 Ratios
- BCE-PR-R has a Return On Assets of 7.85%. This is amongst the best in the industry. BCE-PR-R outperforms 93.33% of its industry peers.
- BCE-PR-R has a better Return On Equity (27.48%) than 86.67% of its industry peers.
- BCE-PR-R's Return On Invested Capital of 4.52% is fine compared to the rest of the industry. BCE-PR-R outperforms 76.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BCE-PR-R is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 4.52% |
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-R (25.21%) is better than 93.33% of its industry peers.
- In the last couple of years the Profit Margin of BCE-PR-R has declined.
- BCE-PR-R's Operating Margin of 22.38% is fine compared to the rest of the industry. BCE-PR-R outperforms 80.00% of its industry peers.
- BCE-PR-R's Operating Margin has been stable in the last couple of years.
- BCE-PR-R's Gross Margin of 67.92% is amongst the best of the industry. BCE-PR-R outperforms 83.33% of its industry peers.
- BCE-PR-R's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% |
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-R is still creating some value.
- The number of shares outstanding for BCE-PR-R remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BCE-PR-R has been increased compared to 5 years ago.
- The debt/assets ratio for BCE-PR-R is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.59, we must say that BCE-PR-R is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of BCE-PR-R (0.59) is worse than 76.67% of its industry peers.
- The Debt to FCF ratio of BCE-PR-R is 10.36, which is on the high side as it means it would take BCE-PR-R, 10.36 years of fcf income to pay off all of its debts.
- BCE-PR-R's Debt to FCF ratio of 10.36 is fine compared to the rest of the industry. BCE-PR-R outperforms 80.00% of its industry peers.
- BCE-PR-R has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- With an excellent Debt to Equity ratio value of 1.57, BCE-PR-R belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.59 |
ROIC/WACC1.04
WACC4.33%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE-PR-R may have some problems paying its short term obligations.
- With a decent Current ratio value of 0.58, BCE-PR-R is doing good in the industry, outperforming 76.67% of the companies in the same industry.
- A Quick Ratio of 0.55 indicates that BCE-PR-R may have some problems paying its short term obligations.
- BCE-PR-R has a Quick ratio of 0.55. This is in the better half of the industry: BCE-PR-R outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- BCE-PR-R shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
- BCE-PR-R shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- Looking at the last year, BCE-PR-R shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
- Measured over the past years, BCE-PR-R shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
3.2 Future
- BCE-PR-R is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.73% yearly.
- Based on estimates for the next years, BCE-PR-R will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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 6.99, the valuation of BCE-PR-R can be described as very cheap.
- Based on the Price/Earnings ratio, BCE-PR-R is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
- BCE-PR-R's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 7.49, the valuation of BCE-PR-R can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BCE-PR-R is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BCE-PR-R is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE-PR-R indicates a rather cheap valuation: BCE-PR-R is cheaper than 86.67% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-R indicates a rather cheap valuation: BCE-PR-R is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.78 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
- BCE-PR-R has a very decent profitability rating, which may justify a higher PE ratio.
- BCE-PR-R's earnings are expected to decrease with -3.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- BCE-PR-R has a Yearly Dividend Yield of 6.15%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.16, BCE-PR-R is paying slightly less dividend.
- BCE-PR-R's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
5.2 History
- The dividend of BCE-PR-R has a limited annual growth rate of 4.82%.
- BCE-PR-R has paid a dividend for at least 10 years, which is a reliable track record.
- BCE-PR-R has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 43.52% of the earnings are spent on dividend by BCE-PR-R. This is a bit on the high side, but may be sustainable.
- BCE-PR-R's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
BCE INC - BCECN 4.733 PERP / BCE-PR-R.CA FAQ
Can you provide the ChartMill fundamental rating for BCE INC - BCECN 4.733 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to BCE-PR-R.CA.
What is the valuation status of BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA). This can be considered as Undervalued.
What is the profitability of BCE-PR-R stock?
BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA) has a profitability rating of 7 / 10.
What is the valuation of BCE INC - BCECN 4.733 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA) is 6.99 and the Price/Book (PB) ratio is 0.84.
Can you provide the financial health for BCE-PR-R stock?
The financial health rating of BCE INC - BCECN 4.733 PERP (BCE-PR-R.CA) is 3 / 10.