BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE - New York Stock Exchange, Inc. - CA05534B7604 - Common Stock - Currency: USD
Overall BCE gets a fundamental rating of 4 out of 10. We evaluated BCE against 33 industry peers in the Diversified Telecommunication Services industry. While BCE belongs to the best of the industry regarding profitability, there are 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.
In the past 5 years BCE has always been profitable.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
BCE has a Return On Assets of 0.22%. This is in the better half of the industry: BCE outperforms 60.61% of its industry peers.
With a decent Return On Equity value of 0.95%, BCE is doing good in the industry, outperforming 60.61% of the companies in the same industry.
BCE has a Return On Invested Capital of 7.47%. This is in the better half of the industry: BCE outperforms 78.79% 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 6.64%.
The 3 year average ROIC (7.08%) for BCE is below the current ROIC(7.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROIC | 7.47% |
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 (0.67%) is better than 60.61% of its industry peers.
BCE's Profit Margin has declined in the last couple of years.
BCE has a better Operating Margin (22.73%) than 84.85% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
BCE has a better Gross Margin (68.43%) than 84.85% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE is 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
The debt/assets ratio for BCE is higher compared to a year ago.
2.2 Solvency
BCE has an Altman-Z score of 0.61. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.61, BCE is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
The Debt to FCF ratio of BCE is 14.54, which is on the high side as it means it would take BCE, 14.54 years of fcf income to pay off all of its debts.
BCE has a Debt to FCF ratio (14.54) which is in line with its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that BCE has dependencies on debt financing.
BCE's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. BCE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Altman-Z | 0.61 |
ROIC/WACC1.41
WACC5.3%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BCE may have some problems paying its short term obligations.
BCE has a Current ratio of 0.60. This is amonst the worse of the industry: BCE underperforms 87.88% 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 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -5.30% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
BCE shows a decrease in Revenue. In the last year, the revenue decreased by -1.07%.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
3.2 Future
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.71% yearly.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
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.
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
The Price/Earnings ratio is 9.75, which indicates a very decent valuation of BCE.
Based on the Price/Earnings ratio, BCE is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, BCE is valued rather cheaply.
BCE is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 84.85% of the companies in the same industry.
BCE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 10.72 |
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 78.79% of the companies listed in the same industry.
BCE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 6.18 |
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 -2.78% in the coming years. This may justify a cheaper valuation.
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 13.09%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.16, BCE pays a better dividend. On top of this BCE pays more dividend than 100.00% of the companies listed in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
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
2331.29% 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.
DP2331.29%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
21.45
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.19%
Inst Owner Change-0.16%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap19.77B
Analysts50.91
Price Target25.53 (19.02%)
Short Float %5.51%
Short Ratio16.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
Yearly Dividend3
Dividend Growth(5Y)4.82%
DP2331.29%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.75%
Min EPS beat(2)-3.58%
Max EPS beat(2)9.09%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-3.58%
Max EPS beat(4)9.09%
EPS beat(8)4
Avg EPS beat(8)1.97%
EPS beat(12)7
Avg EPS beat(12)2.4%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)2.81%
PT rev (3m)-11.5%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 10.72 | ||
| P/S | 1.12 | ||
| P/FCF | 9.82 | ||
| P/OCF | 3.79 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)2.2
EY10.26%
EPS(NY)2
Fwd EY9.33%
FCF(TTM)2.18
FCFY10.18%
OCF(TTM)5.66
OCFY26.38%
SpS19.15
BVpS13.39
TBVpS-7.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.95% | ||
| ROCE | 9.46% | ||
| ROIC | 7.47% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 14.8% | ||
| OM | 22.73% | ||
| PM (TTM) | 0.67% | ||
| GM | 68.43% | ||
| FCFM | 11.41% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 14.54 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 87.84% | ||
| Cap/Sales | 18.14% | ||
| Interest Coverage | 3.15 | ||
| Cash Conversion | 68.12% | ||
| Profit Quality | 1708.59% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.61 |
F-Score5
WACC5.3%
ROIC/WACC1.41
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)-5.3%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%3.95%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y6.71%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-0.79%
Revenue Next Year0.02%
Revenue Next 2Y1.13%
Revenue Next 3Y0.96%
Revenue Next 5Y2.25%
EBIT growth 1Y0.89%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year92.66%
EBIT Next 3Y25.9%
EBIT Next 5Y16.03%
FCF growth 1Y-7.38%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-7.18%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%