BCE INC (BCE.CA) Stock Fundamental Analysis
TSX:BCE - Toronto Stock Exchange - CA05534B7604 - Common Stock - Currency: CAD
Overall BCE gets a fundamental rating of 3 out of 10. We evaluated BCE against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE has a expensive valuation and it also scores bad on growth. Finally BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCE was profitable.
BCE had a positive operating cash flow in the past year.
In the past 5 years BCE has always been profitable.
In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.54%, BCE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
BCE's Return On Equity of 2.26% is on the low side compared to the rest of the industry. BCE is outperformed by 83.33% of its industry peers.
BCE has a Return On Invested Capital of 5.04%. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 5.41%.
The last Return On Invested Capital (5.04%) for BCE is above the 3 year average (4.90%), which is a sign of increasing profitability.
| 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
BCE has a worse Profit Margin (1.61%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
BCE has a Operating Margin of 22.74%. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
The Gross Margin of BCE (68.27%) is worse than 76.67% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCE is destroying value.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
The number of shares outstanding for BCE has been increased compared to 5 years ago.
BCE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that BCE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BCE (0.66) is better than 86.67% of its industry peers.
The Debt to FCF ratio of BCE is 11.06, which is on the high side as it means it would take BCE, 11.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.06, BCE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
BCE has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE has a Debt to Equity ratio of 1.95. This is in the lower half of the industry: BCE underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.78
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE may have some problems paying its short term obligations.
BCE has a worse Current ratio (0.64) than 80.00% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
The Quick ratio of BCE (0.61) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -2.27% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has decreased by -1.23% in the past 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
The Earnings Per Share is expected to grow by 7.92% on average over the next years.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.92%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.9%
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 is valuated reasonably with a Price/Earnings ratio of 10.30.
Based on the Price/Earnings ratio, BCE is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.31. BCE is valued rather cheaply when compared to this.
BCE is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
Based on the Price/Forward Earnings ratio, BCE is valued more expensive than 80.00% of the companies in the same industry.
BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 11.47 |
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 73.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE'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 has a Yearly Dividend Yield of 6.75%, which is a nice return.
BCE's Dividend Yield is rather good when compared to the industry average which is at 6.26. BCE pays more dividend than 96.67% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
5.2 History
The dividend of BCE has a limited annual growth rate of 4.82%.
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)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
BCE pays out 898.21% of its income as dividend. This is not a sustainable payout ratio.
BCE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE (6/13/2025, 7:00:00 PM)
31.01
-0.24 (-0.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap28.59B
Analysts52.73
Price Target34.6 (11.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years16
Div Non Decr Years16
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)-2%
PT rev (3m)-3.61%
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%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.18 | ||
| P/FCF | 8.07 | ||
| P/OCF | 3.76 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)3.01
EY9.71%
EPS(NY)2.7
Fwd EY8.72%
FCF(TTM)3.84
FCFY12.4%
OCF(TTM)8.24
OCFY26.57%
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 | 0.66 |
F-Score6
WACC6.47%
ROIC/WACC0.78
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 5Y7.92%
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 5Y1.9%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y14.93%
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%