BCE INC (BCE)
CA05534B7604 - Common Stock
BCE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. BCE has an excellent profitability rating, but there are concerns on its financial health. BCE has a decent growth rate and is not valued too expensively. 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.
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
BCE has a Return On Assets of 2.89%. This is in the better half of the industry: BCE outperforms 71.43% of its industry peers.
BCE has a Return On Equity of 10.26%. This is in the better half of the industry: BCE outperforms 77.14% of its industry peers.
BCE has a Return On Invested Capital of 6.67%. This is amongst the best in the industry. BCE outperforms 85.71% of its industry peers.
BCE had an Average Return On Invested Capital over the past 3 years of 6.51%. This is in line with the industry average of 5.67%.
The 3 year average ROIC (6.51%) for BCE is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 10.26% | ||
| ROIC | 6.67% |
ROA(3y)3.62%
ROA(5y)4.01%
ROE(3y)11.49%
ROE(5y)12.16%
ROIC(3y)6.51%
ROIC(5y)6.85%
1.3 Margins
With a decent Profit Margin value of 8.41%, BCE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of BCE has declined.
BCE has a Operating Margin of 22.29%. This is amongst the best in the industry. BCE outperforms 91.43% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
BCE's Gross Margin of 67.88% is fine compared to the rest of the industry. BCE outperforms 80.00% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.29% | ||
| PM (TTM) | 8.41% | ||
| GM | 67.88% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
BCE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE has been increased compared to 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 0.90, we must say that BCE is in the distress zone and has some risk of bankruptcy.
BCE has a better Altman-Z score (0.90) than 65.71% of its industry peers.
BCE has a debt to FCF ratio of 12.03. This is a negative value and a sign of low solvency as BCE would need 12.03 years to pay back of all of its debts.
BCE has a Debt to FCF ratio (12.03) which is in line with its industry peers.
BCE has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
BCE has a Debt to Equity ratio of 1.54. This is in the lower half of the industry: BCE underperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 12.03 | ||
| Altman-Z | 0.9 |
ROIC/WACC1.13
WACC5.88%
2.3 Liquidity
BCE has a Current Ratio of 0.65. 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 0.65, BCE is not doing good in the industry: 91.43% of the companies in the same industry are doing better.
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 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -4.18% in the last year.
Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.77% on average per year.
Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 2.06% in the last year.
The Revenue has been growing slightly by 1.01% on average over the past years.
EPS 1Y (TTM)-4.18%
EPS 3Y1.94%
EPS 5Y-1.77%
EPS growth Q2Q7.04%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.54%
Revenue growth 5Y1.01%
Revenue growth Q2Q0.53%
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 5.78% on average per year.
The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y-3.89%
EPS Next 2Y0.21%
EPS Next 3Y0.94%
EPS Next 5Y5.78%
Revenue Next Year0.99%
Revenue Next 2Y1.36%
Revenue Next 3Y1.53%
Revenue Next 5Y2.64%
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 14.36, BCE is valued correctly.
BCE's Price/Earnings ratio is a bit cheaper when compared to the industry. BCE is cheaper than 68.57% of the companies in the same industry.
BCE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.94, the valuation of BCE can be described as correct.
68.57% of the companies in the same industry are more expensive than BCE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (20.88), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BCE.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.21%
EPS Next 3Y0.94%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 8.84%, which is a nice return.
BCE's Dividend Yield is rather good when compared to the industry average which is at 4.98. BCE pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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.
As BCE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.05%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
176.69% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
BCE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP176.69%
EPS Next 2Y0.21%
EPS Next 3Y0.94%
BCE INC
NYSE:BCE (5/3/2024, 7:04:00 PM)
After market: 33.6 0 (0%)33.6
+0.61 (+1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 14.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 10.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.29% | ||
| PM (TTM) | 8.41% | ||
| GM | 67.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.18%
EPS 3Y1.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.06%
Revenue growth 3Y2.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y