BCE INC - BCECN 4.99 PERP (BCE-PR-T.CA) Stock Fundamental Analysis
TSX:BCE-PR-T - Toronto Stock Exchange - CA05534B8107 - Currency: CAD
Overall BCE-PR-T gets a fundamental rating of 3 out of 10. We evaluated BCE-PR-T against 30 industry peers in the Diversified Telecommunication Services industry. BCE-PR-T has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE-PR-T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCE-PR-T was profitable.
BCE-PR-T had a positive operating cash flow in the past year.
Each year in the past 5 years BCE-PR-T has been profitable.
BCE-PR-T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, BCE-PR-T is doing worse than 63.33% of the companies in the same industry.
BCE-PR-T has a Return On Equity of 2.26%. This is in the lower half of the industry: BCE-PR-T underperforms 63.33% of its industry peers.
With a Return On Invested Capital value of 5.04%, BCE-PR-T is not doing good in the industry: 63.33% 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-T is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE-PR-T 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-T is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
BCE-PR-T's Profit Margin has declined in the last couple of years.
BCE-PR-T has a Operating Margin of 22.74%. This is in the lower half of the industry: BCE-PR-T underperforms 63.33% of its industry peers.
BCE-PR-T's Operating Margin has been stable in the last couple of years.
The Gross Margin of BCE-PR-T (68.27%) is comparable to the rest of the industry.
BCE-PR-T'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE-PR-T is still creating some value.
The number of shares outstanding for BCE-PR-T remains at a similar level compared to 1 year ago.
BCE-PR-T has more shares outstanding than it did 5 years ago.
BCE-PR-T has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that BCE-PR-T is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BCE-PR-T (0.55) is comparable to the rest of the industry.
BCE-PR-T has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE-PR-T would need 11.06 years to pay back of all of its debts.
BCE-PR-T has a Debt to FCF ratio of 11.06. This is in the lower half of the industry: BCE-PR-T underperforms 60.00% of its industry peers.
BCE-PR-T 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-T (1.95) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.18
WACC4.26%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-T may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, BCE-PR-T is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that BCE-PR-T may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, BCE-PR-T is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-T have decreased by -2.27% in the last year.
BCE-PR-T 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-T shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
BCE-PR-T shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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
The Earnings Per Share is expected to grow by 7.91% on average over the next years.
BCE-PR-T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.52, the valuation of BCE-PR-T can be described as very cheap.
BCE-PR-T's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. BCE-PR-T is valued rather cheaply when compared to this.
BCE-PR-T is valuated cheaply with a Price/Forward Earnings ratio of 7.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE-PR-T is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BCE-PR-T to the average of the S&P500 Index (36.21), we can say BCE-PR-T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
BCE-PR-T'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-T is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.11 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
BCE-PR-T'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-T has a Yearly Dividend Yield of 6.23%, which is a nice return.
Compared to an average industry Dividend Yield of 6.06, BCE-PR-T pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BCE-PR-T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
The dividend of BCE-PR-T has a limited annual growth rate of 4.82%.
BCE-PR-T has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE-PR-T has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
898.21% of the earnings are spent on dividend by BCE-PR-T. This is not a sustainable payout ratio.
BCE-PR-T's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-T (8/1/2025, 7:00:00 PM)
19.64
-0.07 (-0.36%)
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 Cap18.10B
Analysts53.64
Price Target19.63 (-0.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years4
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)-6.5%
PT rev (3m)3.39%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.74 | ||
| P/FCF | 5.11 | ||
| P/OCF | 2.38 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.32 |
EPS(TTM)3.01
EY15.33%
EPS(NY)2.7
Fwd EY13.76%
FCF(TTM)3.84
FCFY19.58%
OCF(TTM)8.24
OCFY41.95%
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 | 0.55 |
F-Score6
WACC4.26%
ROIC/WACC1.18
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 5Y7.91%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
Revenue Next Year-0.24%
Revenue Next 2Y0.96%
Revenue Next 3Y0.97%
Revenue Next 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
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%