BCE INC - BCECN 4.99 PERP (BCE-PR-T.CA) Stock Fundamental Analysis
TSX:BCE-PR-T - Toronto Stock Exchange - CA05534B8107 - Currency: CAD
Taking everything into account, BCE-PR-T scores 4 out of 10 in our fundamental rating. BCE-PR-T was compared to 30 industry peers in the Diversified Telecommunication Services industry. While BCE-PR-T is still in line with the averages on profitability rating, there are concerns on its financial health. BCE-PR-T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BCE-PR-T had positive earnings in the past year.
In the past year BCE-PR-T had a positive cash flow from operations.
BCE-PR-T had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE-PR-T had a positive operating cash flow.
1.2 Ratios
BCE-PR-T has a Return On Assets (0.54%) which is in line with its industry peers.
BCE-PR-T has a Return On Equity (2.26%) which is in line with its industry peers.
BCE-PR-T has a Return On Invested Capital of 5.04%. This is comparable to the rest of the industry: BCE-PR-T outperforms 43.33% of its industry peers.
BCE-PR-T 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-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
The Profit Margin of BCE-PR-T (1.61%) is comparable to the rest of the industry.
BCE-PR-T's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 22.74%, BCE-PR-T perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
BCE-PR-T's Operating Margin has been stable in the last couple of years.
BCE-PR-T has a Gross Margin of 68.27%. This is comparable to the rest of the industry: BCE-PR-T outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of BCE-PR-T 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-T is still creating some value.
Compared to 1 year ago, BCE-PR-T has about the same amount of shares outstanding.
The number of shares outstanding for BCE-PR-T has been increased compared to 5 years ago.
BCE-PR-T has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-T has an Altman-Z score of 0.53. This is a bad value and indicates that BCE-PR-T is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.53, BCE-PR-T perfoms like the industry average, outperforming 53.33% of the companies in the same 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 (11.06) which is comparable to the rest of the industry.
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 | 0.53 |
ROIC/WACC1.24
WACC4.08%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE-PR-T may have some problems paying its short term obligations.
The Current ratio of BCE-PR-T (0.64) is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that BCE-PR-T may have some problems paying its short term obligations.
The Quick ratio of BCE-PR-T (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
BCE-PR-T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.27%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
Looking at the last year, BCE-PR-T shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last year.
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
BCE-PR-T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.71% yearly.
Based on estimates for the next years, BCE-PR-T will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
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.
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
BCE-PR-T is valuated cheaply with a Price/Earnings ratio of 5.89.
The rest of the industry has a similar Price/Earnings ratio as BCE-PR-T.
BCE-PR-T's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.17.
With a Price/Forward Earnings ratio of 6.56, the valuation of BCE-PR-T can be described as very cheap.
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 (22.10), we can say BCE-PR-T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BCE-PR-T.
BCE-PR-T's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| EV/EBITDA | 5.14 |
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
With a Yearly Dividend Yield of 5.87%, BCE-PR-T is a good candidate for dividend investing.
BCE-PR-T's Dividend Yield is a higher than the industry average which is at 5.74.
BCE-PR-T'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-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
BCE-PR-T pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE-PR-T 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-T (5/28/2025, 7:00:00 PM)
17.74
+0.07 (+0.4%)
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 Cap16.35B
Analysts51.82
Price Target19.92 (12.29%)
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 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)6.05%
PT rev (3m)6.06%
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 | 5.89 | ||
| Fwd PE | 6.56 | ||
| P/S | 0.67 | ||
| P/FCF | 4.61 | ||
| P/OCF | 2.15 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.14 |
EPS(TTM)3.01
EY16.97%
EPS(NY)2.7
Fwd EY15.24%
FCF(TTM)3.84
FCFY21.67%
OCF(TTM)8.24
OCFY46.44%
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
WACC4.08%
ROIC/WACC1.24
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%