BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - New York Stock Exchange, Inc. - CA05534B7604 - Common Stock - Currency: USD
Taking everything into account, BCE scores 4 out of 10 in our fundamental rating. BCE was compared to 33 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
BCE had positive earnings in the past year.
BCE had a positive operating cash flow in the past year.
BCE had positive earnings in each of the past 5 years.
In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
BCE's Return On Assets of 0.54% is in line compared to the rest of the industry. BCE outperforms 54.55% of its industry peers.
BCE has a Return On Equity (2.26%) which is comparable to the rest of the industry.
BCE has a better Return On Invested Capital (7.28%) than 75.76% of its industry peers.
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 7.05%.
The last Return On Invested Capital (7.28%) for BCE is above the 3 year average (7.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| 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 1.61% is in line compared to the rest of the industry. BCE outperforms 54.55% of its industry peers.
BCE's Profit Margin has declined in the last couple of years.
BCE's Operating Margin of 22.74% is amongst the best of the industry. BCE outperforms 84.85% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 68.27%, BCE belongs to the best of the industry, outperforming 81.82% 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 | 22.74% | ||
| 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
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.
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 0.65. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, BCE is doing worse than 63.64% of the companies in the same industry.
BCE has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE would need 11.06 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.06, BCE perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
A Debt/Equity ratio of 1.95 is on the high side and indicates that BCE has dependencies on debt financing.
BCE's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. BCE is outperformed by 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.65 |
ROIC/WACC1.36
WACC5.35%
2.3 Liquidity
BCE has a Current Ratio of 0.64. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
BCE's Current ratio of 0.64 is on the low side compared to the rest of the industry. BCE is outperformed by 84.85% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
BCE's Quick ratio of 0.61 is on the low side compared to the rest of the industry. BCE is outperformed by 84.85% 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.
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.
Looking at the last year, BCE shows a decrease in Revenue. The Revenue has decreased by -1.23% in the last 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 6.71% on average over the next years.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BCE is valuated reasonably with a Price/Earnings ratio of 9.88.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a rather cheap valuation: BCE is cheaper than 87.88% of the companies listed in the same industry.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.01, the valuation of BCE can be described as very reasonable.
BCE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCE is cheaper than 78.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, BCE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit cheaper than 75.76% of the companies in the same industry.
BCE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.75 | ||
| EV/EBITDA | 6.2 |
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 -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
With a Yearly Dividend Yield of 5.87%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 5.09. BCE pays more dividend than 81.82% 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 | 5.87% |
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
898.21% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
The dividend of BCE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
21.53
+0.06 (+0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner Change7.33%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap19.85B
Analysts51.82
Price Target25.57 (18.76%)
Short Float %5.48%
Short Ratio14.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
Yearly Dividend3.01
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)2.24%
PT rev (3m)-1.26%
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)-0.13%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.13 | ||
| P/FCF | 7.75 | ||
| P/OCF | 3.61 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)2.18
EY10.13%
EPS(NY)1.95
Fwd EY9.08%
FCF(TTM)2.78
FCFY12.91%
OCF(TTM)5.96
OCFY27.67%
SpS19.08
BVpS13.6
TBVpS-7.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 13.65% | ||
| 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)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-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 | 0.65 |
F-Score6
WACC5.35%
ROIC/WACC1.36
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 5Y6.71%
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 5Y2.25%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y16.03%
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%