BCE

BCETSX:BCE Stock Report

Market Cap

CA$58.7b

7D

-2.8%

1Y

16.5%

Updated

18 Sep, 2021

Data

Company Financials +
BCE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends3/6

BCE Overview

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

BCE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BCE
Historical stock prices
Current Share PriceCA$64.68
52 Week HighCA$52.52
52 Week LowCA$67.08
Beta0.33
1 Month Change-0.17%
3 Month Change6.17%
1 Year Change16.54%
3 Year Change23.36%
5 Year Change6.68%
Change since IPO158.72%

Recent News & Updates

Shareholder Returns

BCECA TelecomCA Market
7D-2.8%-0.2%-0.6%
1Y16.5%-1.5%28.9%

Return vs Industry: BCE exceeded the Canadian Telecom industry which returned -1.5% over the past year.

Return vs Market: BCE underperformed the Canadian Market which returned 29% over the past year.

Price Volatility

Is BCE's price volatile compared to industry and market?
BCE volatility
BCE Beta0.33
Industry Beta0.61
Market Beta1

Stable Share Price: BCE is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: BCE's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188050,704Mirko Bibichttps://www.bce.ca

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 through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services.

BCE Fundamentals Summary

How do BCE's earnings and revenue compare to its market cap?
BCE fundamental statistics
Market CapCA$58.67b
Earnings (TTM)CA$2.69b
Revenue (TTM)CA$23.29b

21.8x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCE income statement (TTM)
RevenueCA$23.29b
Cost of RevenueCA$13.32b
Gross ProfitCA$9.97b
ExpensesCA$7.28b
EarningsCA$2.69b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.97
Gross Margin42.81%
Net Profit Margin11.55%
Debt/Equity Ratio121.8%

How did BCE perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

115%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BCE (CA$64.68) is trading below our estimate of fair value (CA$141.9)

Significantly Below Fair Value: 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 (21.8x) compared to the North American Telecom industry average (14.9x).

PE vs Market: BCE is poor value based on its PE Ratio (21.8x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: BCE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: BCE's PB Ratio (3.2x) is in line with the XN Telecom industry average.


Future Growth

How is BCE forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCE's forecast earnings growth (7.2% per year) is above the savings rate (1.5%).

Earnings vs Market: BCE's earnings (7.2% per year) are forecast to grow slower than the Canadian market (12.2% per year).

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

Revenue vs Market: BCE's revenue (3% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: BCE's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BCE's Return on Equity is forecast to be low in 3 years time (19.3%).


Past Performance

How has BCE performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCE has high quality earnings.

Growing Profit Margin: BCE's current net profit margins (11.6%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: BCE's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: BCE's earnings growth over the past year (10.6%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: BCE earnings growth over the past year (10.6%) underperformed the Telecom industry 48%.


Return on Equity

High ROE: BCE's Return on Equity (12.6%) is considered low.


Financial Health

How is BCE's financial position?


Financial Position Analysis

Short Term Liabilities: BCE's short term assets (CA$6.9B) do not cover its short term liabilities (CA$8.4B).

Long Term Liabilities: BCE's short term assets (CA$6.9B) do not cover its long term liabilities (CA$33.0B).


Debt to Equity History and Analysis

Debt Level: BCE's debt to equity ratio (121.8%) is considered high.

Reducing Debt: BCE's debt to equity ratio has increased from 108% to 121.8% over the past 5 years.

Debt Coverage: BCE's debt is well covered by operating cash flow (29.7%).

Interest Coverage: BCE's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

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

5.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BCE's dividend (5.41%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: BCE's dividend (5.41%) is in the top 25% of dividend payers in the Canadian market (4.51%)


Stability and Growth of Payments

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 (114.8%), BCE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCE's dividends in 3 years are not forecast to be well covered by earnings (106.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Mirko Bibic (53 yo)

1.67yrs

Tenure

CA$9,477,299

Compensation

Mr. Mirko Bibic has been President and Chief Executive Officer BCE and Bell Canada since January 6, 2020. Mr. Bibic served as the Chief Operating Officer at BCE Inc. and Bell Canada since October 4, 2018 u...


CEO Compensation Analysis

Compensation vs Market: Mirko's total compensation ($USD7.43M) is about average for companies of similar size in the Canadian market ($USD5.88M).

Compensation vs Earnings: Mirko's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BCE's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: BCE's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BCE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BCE Inc.'s 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$58.672b
  • Shares outstanding: 907.11m
  • Website: https://www.bce.ca

Number of Employees


Location

  • BCE Inc.
  • Building A
  • 4th Floor
  • Verdun
  • Quebec
  • H3E 3B3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:08
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.