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BCE INC (BCE.CA) Stock Fundamental Analysis

TSX:BCE - Toronto Stock Exchange - CA05534B7604 - Common Stock - Currency: CAD

31.62  -2.08 (-6.17%)

Fundamental Rating

3

Taking everything into account, BCE scores 3 out of 10 in our fundamental rating. BCE was compared to 29 industry peers in the Diversified Telecommunication Services industry. BCE has a bad profitability rating. Also its financial health evaluation is rather negative. BCE is valied quite expensively at the moment, while it does show a decent growth rate. BCE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

BCE had positive earnings in the past year.
In the past year BCE had a positive cash flow from operations.
Each year in the past 5 years BCE has been profitable.
Each year in the past 5 years BCE had a positive operating cash flow.
BCE.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE.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 2B 4B 6B 8B

1.2 Ratios

The Return On Assets of BCE (0.12%) is worse than 89.66% of its industry peers.
The Return On Equity of BCE (0.48%) is worse than 89.66% of its industry peers.
The Return On Invested Capital of BCE (6.82%) is worse than 82.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCE is in line with the industry average of 6.94%.
The 3 year average ROIC (6.51%) for BCE is below the current ROIC(6.82%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.12%
ROE 0.48%
ROIC 6.82%
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
BCE.CA Yearly ROA, ROE, ROICBCE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

BCE has a worse Profit Margin (0.34%) than 89.66% of its industry peers.
BCE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.51%, BCE is doing worse than 86.21% of the companies in the same industry.
BCE's Operating Margin has been stable in the last couple of years.
The Gross Margin of BCE (68.47%) is worse than 79.31% of its industry peers.
In the last couple of years the Gross Margin of BCE has remained more or less at the same level.
Industry RankSector Rank
OM 22.51%
PM (TTM) 0.34%
GM 68.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
BCE.CA Yearly Profit, Operating, Gross MarginsBCE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE is creating some value.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
Compared to 5 years ago, BCE has more shares outstanding
The debt/assets ratio for BCE is higher compared to a year ago.
BCE.CA Yearly Shares OutstandingBCE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
BCE.CA Yearly Total Debt VS Total AssetsBCE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

BCE has an Altman-Z score of 0.68. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
BCE has a Altman-Z score of 0.68. This is amongst the best in the industry. BCE outperforms 82.76% of its industry peers.
BCE has a debt to FCF ratio of 13.29. This is a negative value and a sign of low solvency as BCE would need 13.29 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.29, BCE is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
BCE has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCE (1.84) is worse than 82.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Altman-Z 0.68
ROIC/WACC1.29
WACC5.29%
BCE.CA Yearly LT Debt VS Equity VS FCFBCE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.62 indicates that BCE may have some problems paying its short term obligations.
BCE has a Current ratio of 0.62. This is amonst the worse of the industry: BCE underperforms 86.21% of its industry peers.
A Quick Ratio of 0.60 indicates that BCE may have some problems paying its short term obligations.
BCE has a Quick ratio of 0.60. This is in the lower half of the industry: BCE underperforms 79.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.6
BCE.CA Yearly Current Assets VS Current LiabilitesBCE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

4

3. Growth

3.1 Past

BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
The Earnings Per Share has been decreasing by -1.77% on average over the past years.
Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 2.06% in the last year.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.01% yearly.
EPS 1Y (TTM)-4.86%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%5.8%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%1.81%

3.2 Future

The Earnings Per Share is expected to grow by 7.51% on average over the next years.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y-6.38%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
EPS Next 5Y7.51%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y2.95%

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.
BCE.CA Yearly Revenue VS EstimatesBCE.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.CA Yearly EPS VS EstimatesBCE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.37, which indicates a very decent valuation of BCE.
Based on the Price/Earnings ratio, BCE is valued more expensive than 86.21% of the companies in the same industry.
BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
Based on the Price/Forward Earnings ratio of 11.01, the valuation of BCE can be described as reasonable.
BCE's Price/Forward Earnings ratio is rather expensive when compared to the industry. BCE is more expensive than 82.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. BCE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.37
Fwd PE 11.01
BCE.CA Price Earnings VS Forward Price EarningsBCE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 75.86% of the companies listed in the same industry.
82.76% of the companies in the same industry are cheaper than BCE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.56
EV/EBITDA 6.39
BCE.CA Per share dataBCE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

BCE's earnings are expected to decrease with -4.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.53%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.42, BCE pays a better dividend. On top of this BCE pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, BCE pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.53%

5.2 History

The dividend of BCE has a limited annual growth rate of 5.05%.
BCE has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.05%
Div Incr Years16
Div Non Decr Years16
BCE.CA Yearly Dividends per shareBCE.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0 0 0 0

5.3 Sustainability

BCE pays out 4482.14% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4482.14%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
BCE.CA Yearly Income VS Free CF VS DividendBCE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B
BCE.CA Dividend Payout.BCE.CA Dividend Payout, showing the Payout Ratio.BCE.CA Dividend Payout.PayoutRetained Earnings

BCE INC

TSX:BCE (2/7/2025, 7:00:00 PM)

31.62

-2.08 (-6.17%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-06 2025-02-06/bmo
Inst Owners43.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap28.85B
Analysts54.78
Price Target37.19 (17.62%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.53%
Yearly Dividend4.02
Dividend Growth(5Y)5.05%
DP4482.14%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-3.58%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-3.58%
Max EPS beat(4)2.82%
EPS beat(8)3
Avg EPS beat(8)0.54%
EPS beat(12)7
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)2.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)-10.29%
PT rev (3m)-27.02%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.45%
Valuation
Industry RankSector Rank
PE 10.37
Fwd PE 11.01
P/S 1.18
P/FCF 9.56
P/OCF 3.83
P/B 1.63
P/tB N/A
EV/EBITDA 6.39
EPS(TTM)3.05
EY9.65%
EPS(NY)2.87
Fwd EY9.08%
FCF(TTM)3.31
FCFY10.46%
OCF(TTM)8.26
OCFY26.12%
SpS26.81
BVpS19.38
TBVpS-10.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.12%
ROE 0.48%
ROCE 9.4%
ROIC 6.82%
ROICexc 7.14%
ROICexgc 13.85%
OM 22.51%
PM (TTM) 0.34%
GM 68.47%
FCFM 12.33%
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
ROICexc(3y)6.59%
ROICexc(5y)6.91%
ROICexgc(3y)12.01%
ROICexgc(5y)12.54%
ROCE(3y)9.27%
ROCE(5y)9.8%
ROICexcg growth 3Y-0.73%
ROICexcg growth 5Y-3.96%
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-3.47%
OM growth 3Y-0.66%
OM growth 5Y-1.08%
PM growth 3Y-8.31%
PM growth 5Y-6.65%
GM growth 3Y-0.81%
GM growth 5Y-0.22%
F-Score6
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF 13.29
Debt/EBITDA 3.09
Cap/Depr 89.57%
Cap/Sales 18.47%
Interest Coverage 3.25
Cash Conversion 71.41%
Profit Quality 3590.48%
Current Ratio 0.62
Quick Ratio 0.6
Altman-Z 0.68
F-Score6
WACC5.29%
ROIC/WACC1.29
Cap/Depr(3y)103.5%
Cap/Depr(5y)99.32%
Cap/Sales(3y)20.39%
Cap/Sales(5y)19.26%
Profit Quality(3y)126.35%
Profit Quality(5y)130.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.86%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS Q2Q%5.8%
EPS Next Y-6.38%
EPS Next 2Y-5.43%
EPS Next 3Y-4.14%
EPS Next 5Y7.51%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Sales Q2Q%1.81%
Revenue Next Year-1.7%
Revenue Next 2Y-0.64%
Revenue Next 3Y0.43%
Revenue Next 5Y2.95%
EBIT growth 1Y1.42%
EBIT growth 3Y1.86%
EBIT growth 5Y-0.08%
EBIT Next Year94.46%
EBIT Next 3Y26.25%
EBIT Next 5Y16.7%
FCF growth 1Y-14.34%
FCF growth 3Y-5.44%
FCF growth 5Y-2.5%
OCF growth 1Y-6.43%
OCF growth 3Y0.06%
OCF growth 5Y1.03%