BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
23.51 USD
+0.31 (+1.34%)
23.5 USD
-0.01 (-0.04%)
Overall BCE gets a fundamental rating of 5 out of 10. We evaluated BCE against 37 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 7.85%. This is amongst the best in the industry. BCE outperforms 91.89% of its industry peers.
BCE has a better Return On Equity (27.48%) than 94.59% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for BCE is in line with the industry average of 6.50%.
| 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
BCE's Profit Margin of 25.21% is amongst the best of the industry. BCE outperforms 94.59% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
BCE has a better Operating Margin (22.38%) than 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.
BCE has a better Gross Margin (67.92%) than 86.49% of its industry peers.
In the last couple of years the Gross Margin of BCE has remained more or less at the same level.
| 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.
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
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.
The Debt to FCF ratio of BCE (10.36) is better than 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.
With a Debt to Equity ratio value of 1.57, BCE is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC1.26
WACC5.16%
2.3 Liquidity
A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
BCE has a Current ratio of 0.58. This is amonst the worse of the industry: BCE underperforms 86.49% of its industry peers.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
BCE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE is outperformed by 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%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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
The Earnings Per Share is expected to grow by 1.21% on average over the next years.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
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
Based on the Price/Earnings ratio of 11.36, the valuation of BCE can be described as reasonable.
BCE's Price/Earnings ratio is rather cheap when compared to the industry. BCE is cheaper than 86.49% of the companies in the same industry.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of BCE.
Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 83.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, BCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.11 |
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 78.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
BCE has a very decent profitability rating, which may justify a higher PE ratio.
BCE's earnings are expected to decrease with -3.28% 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-3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.07%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.66, BCE pays a better dividend. On top of this BCE pays more dividend than 86.49% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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 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 43.52% of its income as dividend. 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-3.28%
23.51
+0.31 (+1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner Change1.38%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.92B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target26.29 (11.82%)
Short Float %2.52%
Short Ratio7.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
Yearly Dividend2.97
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)2.09%
PT rev (3m)2.62%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.11 | ||
| P/S | 1.25 | ||
| P/FCF | 7.77 | ||
| P/OCF | 4.21 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)2.07
EY8.8%
EPS(NY)1.94
Fwd EY8.25%
FCF(TTM)3.03
FCFY12.87%
OCF(TTM)5.59
OCFY23.77%
SpS18.74
BVpS17.18
TBVpS-6.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.29
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-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
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 of BCE INC (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.
What are the PE and PB ratios of BCE INC (BCE) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE) is 11.36 and the Price/Book (PB) ratio is 1.37.
How sustainable is the dividend of BCE INC (BCE) stock?
The dividend rating of BCE INC (BCE) is 8 / 10 and the dividend payout ratio is 43.52%.