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BCE INC - BCECN 4.99 PERP (BCE-PR-T.CA) Stock Fundamental Analysis

TSX:BCE-PR-T - Toronto Stock Exchange - CA05534B8107 - Currency: CAD

17.67  +0.2 (+1.14%)

Fundamental Rating

4

BCE-PR-T gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

BCE-PR-T had positive earnings in the past year.
BCE-PR-T had a positive operating cash flow in the past year.
In the past 5 years BCE-PR-T has always been profitable.
BCE-PR-T had a positive operating cash flow in each of the past 5 years.
BCE-PR-T.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE-PR-T.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

BCE-PR-T has a Return On Assets (0.54%) which is comparable to the rest of the industry.
With a Return On Equity value of 2.26%, BCE-PR-T perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
BCE-PR-T has a Return On Invested Capital (5.04%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years 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 RankSector 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%
BCE-PR-T.CA Yearly ROA, ROE, ROICBCE-PR-T.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

BCE-PR-T has a Profit Margin (1.61%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BCE-PR-T has declined.
BCE-PR-T has a Operating Margin of 22.74%. This is comparable to the rest of the industry: BCE-PR-T outperforms 43.33% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-T has remained more or less at the same level.
With a Gross Margin value of 68.27%, BCE-PR-T perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BCE-PR-T's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
BCE-PR-T.CA Yearly Profit, Operating, Gross MarginsBCE-PR-T.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

2

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.
BCE-PR-T has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE-PR-T has been increased compared to 5 years ago.
The debt/assets ratio for BCE-PR-T is higher compared to a year ago.
BCE-PR-T.CA Yearly Shares OutstandingBCE-PR-T.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
BCE-PR-T.CA Yearly Total Debt VS Total AssetsBCE-PR-T.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 0.53, we must say that BCE-PR-T is in the distress zone and has some risk of bankruptcy.
BCE-PR-T's Altman-Z score of 0.53 is in line compared to the rest of the industry. BCE-PR-T outperforms 53.33% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 11.06, BCE-PR-T is in line with its industry, outperforming 53.33% of the companies in the same industry.
BCE-PR-T has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.95, BCE-PR-T perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 11.06
Altman-Z 0.53
ROIC/WACC1.24
WACC4.07%
BCE-PR-T.CA Yearly LT Debt VS Equity VS FCFBCE-PR-T.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.64 indicates that BCE-PR-T may have some problems paying its short term obligations.
BCE-PR-T has a Current ratio (0.64) which 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.
BCE-PR-T has a Quick ratio (0.61) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.61
BCE-PR-T.CA Yearly Current Assets VS Current LiabilitesBCE-PR-T.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

3

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%.
Measured over the past years, BCE-PR-T shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
The Revenue has decreased by -1.23% in the past 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 6.71% on average over the next years.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BCE-PR-T.CA Yearly Revenue VS EstimatesBCE-PR-T.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
BCE-PR-T.CA Yearly EPS VS EstimatesBCE-PR-T.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.87, the valuation of BCE-PR-T can be described as very cheap.
BCE-PR-T's Price/Earnings is on the same level as the industry average.
BCE-PR-T's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
BCE-PR-T is valuated cheaply with a Price/Forward Earnings ratio of 6.54.
BCE-PR-T's Price/Forward Earnings is on the same level as the industry average.
BCE-PR-T's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
Industry RankSector Rank
PE 5.87
Fwd PE 6.54
BCE-PR-T.CA Price Earnings VS Forward Price EarningsBCE-PR-T.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 4.6
EV/EBITDA 5.13
BCE-PR-T.CA Per share dataBCE-PR-T.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

A cheap valuation may be justified as BCE-PR-T's earnings are expected to decrease with -2.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%

6

5. Dividend

5.1 Amount

BCE-PR-T has a Yearly Dividend Yield of 5.87%, which is a nice return.
Compared to an average industry Dividend Yield of 5.74, BCE-PR-T pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BCE-PR-T pays a better dividend.
Industry RankSector 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
BCE-PR-T.CA Yearly Dividends per shareBCE-PR-T.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
BCE-PR-T.CA Yearly Income VS Free CF VS DividendBCE-PR-T.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
BCE-PR-T.CA Dividend Payout.BCE-PR-T.CA Dividend Payout, showing the Payout Ratio.BCE-PR-T.CA Dividend Payout.PayoutRetained Earnings

BCE INC - BCECN 4.99 PERP

TSX:BCE-PR-T (5/27/2025, 7:00:00 PM)

17.67

+0.2 (+1.14%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners43.19%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap16.29B
Analysts51.82
Price Target19.92 (12.73%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.87%
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years0
Div Non Decr Years4
Ex-Date06-30 2025-06-30 (0.311875)
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 RankSector Rank
PE 5.87
Fwd PE 6.54
P/S 0.67
P/FCF 4.6
P/OCF 2.14
P/B 0.94
P/tB N/A
EV/EBITDA 5.13
EPS(TTM)3.01
EY17.03%
EPS(NY)2.7
Fwd EY15.3%
FCF(TTM)3.84
FCFY21.76%
OCF(TTM)8.24
OCFY46.63%
SpS26.39
BVpS18.8
TBVpS-10.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC4.07%
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%