BCE INC (BCE) Stock Fundamental Analysis
USA - NYSE:BCE - CA05534B7604 - Common Stock
23.07 USD
-0.15 (-0.65%)
23.09 USD
+0.02 (+0.09%)
Taking everything into account, BCE scores 4 out of 10 in our fundamental rating. BCE was compared to 36 industry peers in the Diversified Telecommunication Services industry. BCE has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCE has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally BCE also has an excellent dividend rating.
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.
BCE had positive earnings in each of the past 5 years.
BCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.61%, BCE is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.40%, BCE is in line with its industry, outperforming 52.78% of the companies in the same industry.
BCE's Return On Invested Capital of 7.28% is fine compared to the rest of the industry. BCE outperforms 77.78% 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 6.32%.
The 3 year average ROIC (7.08%) for BCE is below the current ROIC(7.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROIC | 7.28% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)7.08%
ROIC(5y)7.18%
1.3 Margins
BCE's Profit Margin of 1.77% is in line compared to the rest of the industry. BCE outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
Looking at the Operating Margin, with a value of 22.50%, BCE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 (67.94%) is better than 86.11% of its industry peers.
BCE'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
BCE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
BCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that BCE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.69, BCE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
BCE has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as BCE would need 9.25 years to pay back of all of its debts.
The Debt to FCF ratio of BCE (9.25) is better than 63.89% of its industry peers.
BCE has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCE (1.80) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.69 |
ROIC/WACC1.4
WACC5.22%
2.3 Liquidity
BCE has a Current Ratio of 0.61. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.61, BCE is doing worse than 88.89% of the companies in the same industry.
BCE has a Quick Ratio of 0.61. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, BCE is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -6.84% in the last year.
BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
The Revenue has decreased by -0.66% in the past year.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 1.20% on average per year.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.08% yearly.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
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
BCE is valuated reasonably with a Price/Earnings ratio of 11.14.
Based on the Price/Earnings ratio, BCE is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (27.41), we can say BCE is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.58, the valuation of BCE can be described as very reasonable.
BCE's Price/Forward Earnings ratio is rather cheap when compared to the industry. BCE is cheaper than 88.89% of the companies in the same industry.
BCE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
BCE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCE is cheaper than 77.78% of the companies in the same industry.
77.78% of the companies in the same industry are more expensive than BCE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
BCE has a very decent profitability rating, which may justify a higher PE ratio.
BCE's earnings are expected to decrease with -3.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.42%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.19, BCE pays a better dividend. On top of this BCE pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
5.2 History
The dividend of BCE has a limited annual growth rate of 4.82%.
BCE has paid a dividend for at least 10 years, which is a reliable track record.
BCE 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 Years16
Div Non Decr Years16
5.3 Sustainability
739.72% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
BCE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
23.07
-0.15 (-0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner Change-1.33%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.51B
Analysts55
Price Target25.97 (12.57%)
Short Float %4.03%
Short Ratio12.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend3.01
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years16
Div Non Decr Years16
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)4.21%
PT rev (3m)2.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 11.58 | ||
| P/S | 1.22 | ||
| P/FCF | 7.32 | ||
| P/OCF | 3.97 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.32 |
EPS(TTM)2.07
EY8.97%
EPS(NY)1.99
Fwd EY8.64%
FCF(TTM)3.15
FCFY13.67%
OCF(TTM)5.81
OCFY25.19%
SpS18.95
BVpS14.03
TBVpS-6.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 13.5% | ||
| 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)7.08%
ROIC(5y)7.18%
ROICexc(3y)7.23%
ROICexc(5y)7.29%
ROICexgc(3y)13.21%
ROICexgc(5y)13.21%
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 | 0.69 |
F-Score5
WACC5.22%
ROIC/WACC1.4
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-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.66%
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%