BCE INC (BCE) Stock Fundamental Analysis
USA - NYSE:BCE - CA05534B7604 - Common Stock
23.69 USD
+0.04 (+0.17%)
23.69 USD
0 (0%)
Overall BCE gets a fundamental rating of 4 out of 10. We evaluated BCE against 36 industry peers in the Diversified Telecommunication Services industry. While BCE has a great profitability rating, there are quite some concerns on its financial health. BCE has a valuation in line with the averages, but it does not seem to be growing. 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.
BCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BCE has a Return On Assets (0.61%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.40%, BCE is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Return On Invested Capital of BCE (7.28%) is better than 75.00% 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 5.86%.
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
The Profit Margin of BCE (1.77%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BCE has declined.
BCE's Operating Margin of 22.50% is amongst the best of the industry. BCE outperforms 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 (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
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.
Compared to 5 years ago, BCE has more shares outstanding
BCE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that BCE is in the distress zone and has some risk of bankruptcy.
BCE has a Altman-Z score of 0.71. This is in the lower half of the industry: BCE underperforms 61.11% of its industry peers.
The Debt to FCF ratio of BCE is 9.25, which is on the high side as it means it would take BCE, 9.25 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.25, BCE is doing good in 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.
BCE has a Debt to Equity ratio of 1.80. This is in the lower half of the industry: BCE underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.37
WACC5.31%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
BCE has a Current ratio of 0.61. This is amonst the worse of the industry: BCE underperforms 88.89% of its industry peers.
A Quick Ratio of 0.57 indicates that BCE may have some problems paying its short term obligations.
BCE has a Quick ratio of 0.57. This is amonst the worse of the industry: BCE underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.84%.
Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
The Revenue has decreased by -0.66% in the past year.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.52% yearly.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 2.40% on average per year.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
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
Based on the Price/Earnings ratio of 11.61, the valuation of BCE can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.31, BCE is valued rather cheaply.
BCE is valuated correctly with a Price/Forward Earnings ratio of 12.12.
Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 83.33% of the companies in the same industry.
BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
75.00% 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 | 7.64 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
BCE's earnings are expected to decrease with -3.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.32%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 5.11. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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 739.72% of its income as dividend. 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-4.95%
EPS Next 3Y-3.44%
23.69
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner Change-0.63%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.09B
Analysts55
Price Target25.75 (8.7%)
Short Float %4%
Short Ratio12.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend2.97
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)0.53%
PT rev (3m)2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 12.12 | ||
| P/S | 1.27 | ||
| P/FCF | 7.64 | ||
| P/OCF | 4.15 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)2.04
EY8.61%
EPS(NY)1.95
Fwd EY8.25%
FCF(TTM)3.1
FCFY13.08%
OCF(TTM)5.71
OCFY24.11%
SpS18.63
BVpS13.79
TBVpS-6.75
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 | 0.71 |
F-Score5
WACC5.31%
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-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
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%