BCE INC - BCECN 4.7 PERP (BCE-PR-Y.CA) Stock Fundamental Analysis
Canada - TSX:BCE-PR-Y - CA05534B8511
18.88 CAD
-0.12 (-0.63%)
We assign a fundamental rating of 5 out of 10 to BCE-PR-Y. BCE-PR-Y was compared to 31 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Y has an excellent profitability rating, but there are concerns on its financial health. BCE-PR-Y is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BCE-PR-Y had positive earnings in the past year.
In the past year BCE-PR-Y had a positive cash flow from operations.
Each year in the past 5 years BCE-PR-Y has been profitable.
Each year in the past 5 years BCE-PR-Y had a positive operating cash flow.
1.2 Ratios
BCE-PR-Y has a Return On Assets of 0.61%. This is in the better half of the industry: BCE-PR-Y outperforms 70.97% of its industry peers.
With a decent Return On Equity value of 2.40%, BCE-PR-Y is doing good in the industry, outperforming 70.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.04%, BCE-PR-Y is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
BCE-PR-Y had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.44%.
The last Return On Invested Capital (5.04%) for BCE-PR-Y is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| 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-Y has a Profit Margin of 1.77%. This is in the better half of the industry: BCE-PR-Y outperforms 70.97% of its industry peers.
In the last couple of years the Profit Margin of BCE-PR-Y has declined.
Looking at the Operating Margin, with a value of 22.50%, BCE-PR-Y is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
BCE-PR-Y's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 67.94%, BCE-PR-Y is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
BCE-PR-Y's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
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-Y is still creating some value.
BCE-PR-Y has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE-PR-Y has been increased compared to 5 years ago.
Compared to 1 year ago, BCE-PR-Y has a worse debt to assets ratio.
2.2 Solvency
BCE-PR-Y has an Altman-Z score of 0.56. This is a bad value and indicates that BCE-PR-Y is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.56, BCE-PR-Y is doing worse than 70.97% of the companies in the same industry.
The Debt to FCF ratio of BCE-PR-Y is 9.25, which is on the high side as it means it would take BCE-PR-Y, 9.25 years of fcf income to pay off all of its debts.
BCE-PR-Y's Debt to FCF ratio of 9.25 is fine compared to the rest of the industry. BCE-PR-Y outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE-PR-Y has dependencies on debt financing.
BCE-PR-Y has a Debt to Equity ratio of 1.80. This is amongst the best in the industry. BCE-PR-Y outperforms 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.56 |
ROIC/WACC1.18
WACC4.26%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE-PR-Y may have some problems paying its short term obligations.
With a decent Current ratio value of 0.61, BCE-PR-Y is doing good in the industry, outperforming 70.97% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that BCE-PR-Y may have some problems paying its short term obligations.
BCE-PR-Y has a better Quick ratio (0.57) than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-Y have decreased by -6.84% in the last year.
Measured over the past years, BCE-PR-Y shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
BCE-PR-Y shows a decrease in Revenue. In the last year, the revenue decreased by -0.66%.
BCE-PR-Y shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
3.2 Future
The Earnings Per Share is expected to grow by 1.52% on average over the next years.
BCE-PR-Y is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
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
The Price/Earnings ratio is 6.60, which indicates a rather cheap valuation of BCE-PR-Y.
Based on the Price/Earnings ratio, BCE-PR-Y is valued cheaper than 87.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCE-PR-Y to the average of the S&P500 Index (27.86), we can say BCE-PR-Y is valued rather cheaply.
The Price/Forward Earnings ratio is 6.87, which indicates a rather cheap valuation of BCE-PR-Y.
Based on the Price/Forward Earnings ratio, BCE-PR-Y is valued cheaper than 83.87% of the companies in the same industry.
BCE-PR-Y is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
80.65% of the companies in the same industry are more expensive than BCE-PR-Y, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BCE-PR-Y is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.33 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
BCE-PR-Y has a very decent profitability rating, which may justify a higher PE ratio.
BCE-PR-Y's earnings are expected to decrease with -3.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
BCE-PR-Y has a Yearly Dividend Yield of 4.48%, which is a nice return.
BCE-PR-Y's Dividend Yield is slightly below the industry average, which is at 4.61.
Compared to an average S&P500 Dividend Yield of 2.44, BCE-PR-Y pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
5.2 History
The dividend of BCE-PR-Y has a limited annual growth rate of 4.82%.
BCE-PR-Y has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BCE-PR-Y pays out 739.72% of its income as dividend. This is not a sustainable payout ratio.
BCE-PR-Y's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
TSX:BCE-PR-Y (10/2/2025, 7:00:00 PM)
18.88
-0.12 (-0.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap17.61B
Analysts55
Price Target21.2 (12.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)12.37%
PT rev (3m)3.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 6.87 | ||
| P/S | 0.72 | ||
| P/FCF | 4.33 | ||
| P/OCF | 2.35 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)2.86
EY15.15%
EPS(NY)2.75
Fwd EY14.55%
FCF(TTM)4.36
FCFY23.07%
OCF(TTM)8.03
OCFY42.51%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.56 |
F-Score5
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%