BCE INC - BCECN 5.346 PERP (BCE-PR-Z.CA) Stock Fundamental Analysis
TSX:BCE-PR-Z - Toronto Stock Exchange - CA05534B8289 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to BCE-PR-Z. BCE-PR-Z was compared to 29 industry peers in the Diversified Telecommunication Services industry. BCE-PR-Z may be in some trouble as it scores bad on both profitability and health. BCE-PR-Z is valued correctly, but it does not seem to be growing. Finally BCE-PR-Z also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE-PR-Z had positive earnings in the past year.
BCE-PR-Z had a positive operating cash flow in the past year.
BCE-PR-Z had positive earnings in each of the past 5 years.
BCE-PR-Z had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE-PR-Z's Return On Assets of 0.22% is on the low side compared to the rest of the industry. BCE-PR-Z is outperformed by 75.86% of its industry peers.
BCE-PR-Z's Return On Equity of 0.95% is on the low side compared to the rest of the industry. BCE-PR-Z is outperformed by 75.86% of its industry peers.
BCE-PR-Z has a Return On Invested Capital of 5.18%. This is in the lower half of the industry: BCE-PR-Z underperforms 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE-PR-Z is in line with the industry average of 5.52%.
The last Return On Invested Capital (5.18%) for BCE-PR-Z is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 5.18% |
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-Z has a Profit Margin of 0.67%. This is in the lower half of the industry: BCE-PR-Z underperforms 75.86% of its industry peers.
BCE-PR-Z's Profit Margin has declined in the last couple of years.
BCE-PR-Z has a worse Operating Margin (22.73%) than 75.86% of its industry peers.
In the last couple of years the Operating Margin of BCE-PR-Z has remained more or less at the same level.
With a Gross Margin value of 68.43%, BCE-PR-Z is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BCE-PR-Z has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE-PR-Z is creating some value.
BCE-PR-Z has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE-PR-Z has more shares outstanding
BCE-PR-Z has a worse debt/assets ratio than last year.
2.2 Solvency
BCE-PR-Z has an Altman-Z score of 0.49. This is a bad value and indicates that BCE-PR-Z is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, BCE-PR-Z is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
The Debt to FCF ratio of BCE-PR-Z is 14.54, which is on the high side as it means it would take BCE-PR-Z, 14.54 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 14.54, BCE-PR-Z is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE-PR-Z has dependencies on debt financing.
With a Debt to Equity ratio value of 1.92, BCE-PR-Z is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.29
WACC4.02%
2.3 Liquidity
BCE-PR-Z has a Current Ratio of 0.60. This is a bad value and indicates that BCE-PR-Z is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.60, BCE-PR-Z is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
BCE-PR-Z has a Quick Ratio of 0.60. This is a bad value and indicates that BCE-PR-Z is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE-PR-Z has a Quick ratio of 0.57. This is in the lower half of the industry: BCE-PR-Z underperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE-PR-Z have decreased by -5.30% in the last year.
BCE-PR-Z shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
BCE-PR-Z shows a decrease in Revenue. In the last year, the revenue decreased by -1.07%.
BCE-PR-Z shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
Based on estimates for the next years, BCE-PR-Z will show a small growth in Earnings Per Share. The EPS will grow by 6.71% on average per year.
BCE-PR-Z is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.69, the valuation of BCE-PR-Z can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BCE-PR-Z is on the same level as its industry peers.
BCE-PR-Z is valuated cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
BCE-PR-Z is valuated cheaply with a Price/Forward Earnings ratio of 6.26.
BCE-PR-Z's Price/Forward Earnings ratio is in line with the industry average.
BCE-PR-Z is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
62.07% of the companies in the same industry are cheaper than BCE-PR-Z, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE-PR-Z indicates a slightly more expensive valuation: BCE-PR-Z is more expensive than 62.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.73 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE-PR-Z'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%
5. Dividend
5.1 Amount
BCE-PR-Z has a Yearly Dividend Yield of 13.44%, which is a nice return.
BCE-PR-Z's Dividend Yield is rather good when compared to the industry average which is at 11.86. BCE-PR-Z pays more dividend than 89.66% of the companies in the same industry.
BCE-PR-Z's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
5.2 History
The dividend of BCE-PR-Z has a limited annual growth rate of 4.82%.
BCE-PR-Z has paid a dividend for at least 10 years, which is a reliable track record.
BCE-PR-Z has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
BCE-PR-Z pays out 2331.29% of its income as dividend. This is not a sustainable payout ratio.
BCE-PR-Z's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE-PR-Z (5/2/2025, 7:00:00 PM)
17.31
-0.3 (-1.7%)
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 Cap15.96B
Analysts51.82
Price Target19.79 (14.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.44% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)-0.49%
PT rev (3m)-0.57%
EPS NQ rev (1m)-3.08%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 6.26 | ||
| P/S | 0.65 | ||
| P/FCF | 5.73 | ||
| P/OCF | 2.21 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.11 |
EPS(TTM)3.04
EY17.56%
EPS(NY)2.77
Fwd EY15.98%
FCF(TTM)3.02
FCFY17.45%
OCF(TTM)7.82
OCFY45.2%
SpS26.48
BVpS18.52
TBVpS-10.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 10.25% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.49 |
F-Score5
WACC4.02%
ROIC/WACC1.29
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%