TSX:BCE

Stock Analysis Report

Executive Summary

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has BCE's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

BCE

-0.5%

CA Telecom

-0.2%

CA Market


1 Year Return

19.9%

BCE

14.1%

CA Telecom

1.1%

CA Market

Return vs Industry: BCE exceeded the Canadian Telecom industry which returned 14.1% over the past year.

Return vs Market: BCE exceeded the Canadian Market which returned 1.1% over the past year.


Shareholder returns

BCEIndustryMarket
7 Day-0.7%-0.5%-0.2%
30 Day-0.09%-0.9%-3.3%
90 Day7.1%4.2%-1.6%
1 Year26.3%19.9%19.9%14.1%4.6%1.1%
3 Year22.8%5.3%26.8%8.5%13.1%3.1%
5 Year69.0%31.9%44.5%11.8%24.7%6.7%

Price Volatility Vs. Market

How volatile is BCE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BCE undervalued compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BCE (CA$64.11) is trading below our estimate of fair value (CA$126.79)

Significantly Undervalued: BCE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BCE is poor value based on its PE Ratio (19.7x) compared to the Telecom industry average (16.4x).

PE vs Market: BCE is poor value based on its PE Ratio (19.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BCE is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: BCE is good value based on its PB Ratio (3.6x) compared to the CA Telecom industry average (3.6x).


Next Steps

Future Growth

How is BCE forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCE's forecast earnings growth (4.7% per year) is above the savings rate (1.9%).

Earnings vs Market: BCE's earnings (4.7% per year) are forecast to grow slower than the Canadian market (13.6% per year).

High Growth Earnings: BCE's earnings are forecast to grow, but not significantly.

Revenue vs Market: BCE's revenue (2.6% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: BCE's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BCE's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has BCE performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BCE's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: BCE's earnings growth over the past year (3.4%) is below its 5-year average (5.1% per year).

Earnings vs Industry: BCE earnings growth over the past year (3.4%) exceeded the Telecom industry -8.4%.


Return on Equity

High ROE: BCE's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: BCE has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: BCE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BCE's financial position?


Financial Position Analysis

Short Term Liabilities: BCE's short term assets (CA$6.5B) do not cover its short term liabilities (CA$11.3B)

Long Term Liabilities: BCE's short term assets (6.5B) do not cover its long term liabilities (28.4B)


Debt to Equity History and Analysis

Debt Level: BCE's debt to equity ratio (124.8%) is considered high

Reducing Debt: BCE's debt to equity ratio has increased from 105.8% to 124.8% over the past 5 years.

Debt Coverage: BCE's debt is well covered by operating cash flow (29.1%).

Interest Coverage: BCE's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: BCE has a high level of physical assets or inventory.

Debt Coverage by Assets: BCE's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is BCE's current dividend yield, its reliability and sustainability?

4.94%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.0%markettop25%6.0%industryaverage4.8%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BCE's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: BCE's dividend (4.94%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: BCE's dividend payments have been volatile in the past 10 years.

Growing Dividend: BCE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.2%), BCE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCE's dividends in 3 years are forecast to be covered by earnings (78% payout ratio).


Next Steps

Management

What is the CEO of BCE's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

George Cope (57yo)

11.3yrs

Tenure

CA$12,014,442

Compensation

Mr. George Alexander Cope, O.C. C.M., has been the President of Bell Canada, Inc. since January 19, 2006 and has also been its Chief Executive Officer since July 11, 2008. Mr. Cope has been the President a ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD9.15M) is about average for companies of similar size in the Canadian market ($USD7.04M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.6yrs

Average Tenure

57yo

Average Age

Experienced Management: BCE's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

66yo

Average Age

Experienced Board: BCE's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: BCE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$7,201,15225 Sep 19
Wade Oosterman
EntityIndividual
Role
Top Key Executive
Vice Chair & Group President
Shares112,360
Max PriceCA$64.09
SellCA$2,722,44116 Aug 19
Rizwan Jamal
EntityIndividual
Shares44,217
Max PriceCA$61.57
SellCA$201,62609 Aug 19
Thomas Little
EntityIndividual
Role
Senior Key Executive
President of Bell Business Markets - Bell Canada
Shares3,279
Max PriceCA$61.49
SellCA$30,22101 Mar 19
Mirko Bibic
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares519
Max PriceCA$58.23
SellCA$334,94922 Feb 19
Thomas Little
EntityIndividual
Role
Senior Key Executive
President of Bell Business Markets - Bell Canada
Shares5,772
Max PriceCA$58.03
SellCA$336,45022 Feb 19
Mirko Bibic
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares5,772
Max PriceCA$58.29
SellCA$425,84730 Nov 18
Glen LeBlanc
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,471
Max PriceCA$57.00
BuyCA$144,27421 Nov 18
Robert Simmonds
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,600
Max PriceCA$55.49
BuyCA$122,07820 Nov 18
Robert Simmonds
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,200
Max PriceCA$55.49
SellCA$397,43809 Nov 18
Bernard Le Duc
EntityIndividual
Shares7,513
Max PriceCA$52.90

Ownership Breakdown


Management Team

  • George Cope (57yo)

    President

    • Tenure: 11.3yrs
    • Compensation: CA$12.01m
  • Wade Oosterman (58yo)

    Vice Chair & Group President

    • Tenure: 4.5yrs
    • Compensation: CA$6.86m
  • Martine Turcotte (58yo)

    Vice Chairman of Quebec

    • Tenure: 11.3yrs
  • John Watson (55yo)

    Executive Vice President of Customer Experience - Bell Canada

    • Tenure: 0yrs
    • Compensation: CA$3.32m
  • Michel Lalande

    Senior VP

    • Tenure: 0yrs
  • Glen LeBlanc (51yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: CA$6.69m
  • Michael Cole

    Executive VP & Chief Information Officer of Bell Canada

    • Tenure: 0yrs
  • Mirko Bibic

    Chief Operating Officer

    • Tenure: 1yrs
    • Compensation: CA$4.15m
  • Tom Little

    President of Bell Business Markets - Bell Canada

    • Tenure: 8.8yrs
    • Compensation: CA$3.46m
  • Thane Fotopoulos

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • George Cope (57yo)

    President

    • Tenure: 11.3yrs
    • Compensation: CA$12.01m
  • Gord Nixon (62yo)

    Chair of the Board

    • Tenure: 3.5yrs
    • Compensation: CA$425.00k
  • Barry Allen (70yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$225.00k
  • Ian Greenberg (77yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$205.00k
  • Karen Sheriff (61yo)

    Corporate Director

    • Tenure: 2.5yrs
    • Compensation: CA$197.50k
  • Bob Simmonds (65yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$205.00k
  • Sophie Brochu (55yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: CA$205.00k
  • David Denison (67yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: CA$225.00k
  • Bob Brown (74yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$250.00k
  • Paul Weiss (71yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$250.00k

Company Information

BCE Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BCE Inc.
  • Ticker: BCE
  • Exchange: TSX
  • Founded: 1880
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CA$57.704b
  • Shares outstanding: 900.08m
  • Website: https://www.bce.ca

Number of Employees


Location

  • BCE Inc.
  • Building A
  • 8th Floor
  • Verdun
  • Quebec
  • H3E 3B3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCENYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
BCE1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
BCETSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1968
BCE.PRSTSX (The Toronto Stock Exchange)PFD 1ST S%CACADOct 1996
BCE.PRYTSX (The Toronto Stock Exchange)PFD 1ST SER YCACADDec 1997
BCEF.FOTCPK (Pink Sheets LLC)PFD 1ST SER YUSUSDDec 1997
BCE.PRRTSX (The Toronto Stock Exchange)PFD 1ST SER RCACADNov 2000
BCE.PRATSX (The Toronto Stock Exchange)PFD 1ST SER AACACADMar 2002
BCE.PRZTSX (The Toronto Stock Exchange)PFD 1ST SER ZCACADNov 2002
BCE.PRCTSX (The Toronto Stock Exchange)PFD 1ST SER ACCACADFeb 2003
BCE.PRTTSX (The Toronto Stock Exchange)PFD 1ST SER TCACADOct 2006
BCE.PRFTSX (The Toronto Stock Exchange)PFD 1ST CL AFCACADFeb 2007
BECE.FOTCPK (Pink Sheets LLC)PFD 1ST CL AHUSUSDFeb 2007
BCE.PRGTSX (The Toronto Stock Exchange)PFD 1ST CL AGCACADFeb 2007
BCE.PRETSX (The Toronto Stock Exchange)PFD 1ST CL AECACADFeb 2007
BCE.PRHTSX (The Toronto Stock Exchange)PFD 1ST CL AHCACADFeb 2007
BCE.PRBTSX (The Toronto Stock Exchange)PFD SHS SER ABCACADAug 2007
BCE.PRDTSX (The Toronto Stock Exchange)RED 1ST PFD ADCACADFeb 2008
BCE.PRKTSX (The Toronto Stock Exchange)1ST PFD SER AKCACADJul 2011
BCE.PRJTSX (The Toronto Stock Exchange)PFD CL A-AJCACADAug 2011
BCE.PRMTSX (The Toronto Stock Exchange)1ST PFD SER AMCACADSep 2014
BCE.PROTSX (The Toronto Stock Exchange)1SR PFD SER AOCACADSep 2014
BCE.PRQTSX (The Toronto Stock Exchange)1SR PFD SER AQCACADSep 2014
BCE.PRNTSX (The Toronto Stock Exchange)RED PFD 1ST ANCACADApr 2016
BCE.PRLTSX (The Toronto Stock Exchange)1ST PFD SER ALCACADJan 2017

Biography

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates in three segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:00
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.