BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - CA05534B7604 - Common Stock
24.96 USD
+0.14 (+0.56%)
24.96 USD
0 (0%)
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. There are concerns on the financial health of BCE while its profitability can be described as average. BCE has a valuation in line with the averages, but it does not seem to be growing. 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.
BCE had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE had a positive operating cash flow.
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.
With a Return On Equity value of 2.40%, BCE perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.28%, BCE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
BCE had an Average Return On Invested Capital over the past 3 years of 7.08%. This is in line with the industry average of 7.35%.
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
Looking at the Profit Margin, with a value of 1.77%, BCE is in line with its industry, outperforming 50.00% of the companies in the same industry.
BCE's Profit Margin has declined in the last couple of years.
BCE's Operating Margin of 22.50% is amongst the best of the industry. BCE outperforms 83.33% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 67.94%, BCE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
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
BCE has an Altman-Z score of 0.72. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
BCE's Altman-Z score of 0.72 is in line compared to the rest of the industry. BCE outperforms 44.44% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.25, BCE is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.80, BCE is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.72 |
ROIC/WACC1.37
WACC5.32%
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.
With a Current ratio value of 0.61, BCE is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that BCE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, BCE is doing worse than 88.89% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has decreased by -0.66% in the past year.
The Revenue has been growing slightly by 0.51% on average over the past years.
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 1.28% on average over the next years.
The Revenue is expected to grow by 2.16% on average over the next years.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.28%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.16%
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.
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
With a Price/Earnings ratio of 12.00, BCE is valued correctly.
Based on the Price/Earnings ratio, BCE is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. BCE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.47, which indicates a correct valuation of BCE.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.72. BCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 69.44% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.88 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.11% in the coming years.
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 5.13%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 1691.54. BCE pays more dividend than 80.56% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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
739.72% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
24.96
+0.14 (+0.56%)
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 Cap23.28B
Analysts53.91
Price Target25.61 (2.6%)
Short Float %4.2%
Short Ratio11.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend3.03
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)1.5%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)2.84%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.31 | ||
| P/FCF | 7.88 | ||
| P/OCF | 4.28 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)2.08
EY8.33%
EPS(NY)2
Fwd EY8.02%
FCF(TTM)3.17
FCFY12.69%
OCF(TTM)5.84
OCFY23.38%
SpS19.03
BVpS14.09
TBVpS-6.9
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 | 0.72 |
F-Score5
WACC5.32%
ROIC/WACC1.37
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 5Y1.28%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.16%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.75%
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%