BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
23.66 USD
-0.16 (-0.67%)
23.623 USD
-0.04 (-0.16%)
We assign a fundamental rating of 5 out of 10 to BCE. BCE was compared to 37 industry peers in the Diversified Telecommunication Services industry. BCE scores excellent on profitability, but there are concerns on its financial health. BCE is not valued too expensively and it also shows a decent growth rate. 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.
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
The Return On Assets of BCE (7.85%) is better than 91.89% of its industry peers.
Looking at the Return On Equity, with a value of 27.48%, BCE belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.52%, BCE is in the better half of the industry, outperforming 72.97% 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 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 6.52% |
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 25.21%, BCE belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
BCE's Profit Margin has declined in the last couple of years.
BCE has a Operating Margin of 22.38%. This is amongst the best in the industry. BCE outperforms 86.49% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
With an excellent Gross Margin value of 67.92%, BCE belongs to the best of the industry, outperforming 86.49% 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 | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% |
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.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
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 0.72, we must say that BCE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.72, BCE is doing worse than 62.16% of the companies in the same industry.
The Debt to FCF ratio of BCE is 10.36, which is on the high side as it means it would take BCE, 10.36 years of fcf income to pay off all of its debts.
BCE's Debt to FCF ratio of 10.36 is fine compared to the rest of the industry. BCE outperforms 64.86% of its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE has dependencies on debt financing.
BCE has a worse Debt to Equity ratio (1.57) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC1.26
WACC5.16%
2.3 Liquidity
BCE has a Current Ratio of 0.58. 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 has a Current ratio of 0.58. This is amonst the worse of the industry: BCE underperforms 89.19% of its industry peers.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
BCE has a Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
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 small growth in Revenue. The Revenue has grown by 0.11% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
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 1.21% on average per year.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y2.13%
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 11.16.
86.49% of the companies in the same industry are more expensive than BCE, based on the Price/Earnings ratio.
BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of BCE can be described as reasonable.
Based on the Price/Forward Earnings ratio, BCE is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
70.27% of the companies in the same industry are more expensive than BCE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 75.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.64 | ||
| EV/EBITDA | 6.69 |
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 -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 5.35%, which is a nice return.
BCE's Dividend Yield is rather good when compared to the industry average which is at 2.41. BCE pays more dividend than 86.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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
43.52% of the earnings are spent on dividend by BCE. This is a bit on the high side, but may be sustainable.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
23.66
-0.16 (-0.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.26%
Inst Owner Change1.39%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.06B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts65.45
Price Target26.7 (12.85%)
Short Float %2.65%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
Yearly Dividend3.04
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.44%
Min EPS beat(2)-12.22%
Max EPS beat(2)9.34%
EPS beat(4)3
Avg EPS beat(4)4.21%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)6
Avg EPS beat(12)1.77%
EPS beat(16)10
Avg EPS beat(16)2.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.91%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)1.57%
PT rev (3m)2.79%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)1.61%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.91 | ||
| P/S | 1.23 | ||
| P/FCF | 7.64 | ||
| P/OCF | 4.14 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.12
EY8.96%
EPS(NY)1.99
Fwd EY8.4%
FCF(TTM)3.1
FCFY13.09%
OCF(TTM)5.72
OCFY24.18%
SpS19.18
BVpS17.59
TBVpS-6.43
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROCE | 8.25% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.28% | ||
| OM | 22.38% | ||
| PM (TTM) | 25.21% | ||
| GM | 67.92% | ||
| FCFM | 16.15% |
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%
ROICexgc growth 3Y1.14%
ROICexgc 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 65.44% | ||
| Cap/Sales | 13.68% | ||
| Interest Coverage | 2.91 | ||
| Cash Conversion | 68.91% | ||
| Profit Quality | 64.08% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.72 |
F-Score6
WACC5.16%
ROIC/WACC1.26
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)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.99%
EBIT Next 3Y26.65%
EBIT Next 5Y16.23%
FCF growth 1Y77.12%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-3.63%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%
BCE INC / BCE FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 5 / 10 to BCE.
What is the valuation status for BCE stock?
ChartMill assigns a valuation rating of 6 / 10 to BCE INC (BCE). This can be considered as Fairly Valued.
How profitable is BCE INC (BCE) stock?
BCE INC (BCE) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for BCE stock?
The Earnings per Share (EPS) of BCE INC (BCE) is expected to decline by -9.15% in the next year.
Is the dividend of BCE INC sustainable?
The dividend rating of BCE INC (BCE) is 8 / 10 and the dividend payout ratio is 43.52%.