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 Analysis

Solid track record with mediocre balance sheet.


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

Stable Share Price: BCE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

BCE

2.9%

CA Telecom

2.1%

CA Market


1 Year Return

-3.6%

BCE

-5.3%

CA Telecom

-21.2%

CA Market

Return vs Industry: BCE exceeded the Canadian Telecom industry which returned -11% over the past year.

Return vs Market: BCE exceeded the Canadian Market which returned -24.8% over the past year.


Shareholder returns

BCEIndustryMarket
7 Day4.2%2.9%2.1%
30 Day0.2%-10.8%-13.8%
90 Day-4.4%-14.8%-21.9%
1 Year1.7%-3.6%-1.7%-5.3%-18.6%-21.2%
3 Year11.0%-5.3%3.5%-10.7%-11.0%-19.3%
5 Year35.8%5.5%22.4%-4.0%1.6%-13.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BCE (CA$56.73) is trading below our estimate of fair value (CA$128.4)

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 (16.8x) compared to the Telecom industry average (14.9x).

PE vs Market: BCE is poor value based on its PE Ratio (16.8x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: BCE is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: BCE is overvalued based on its PB Ratio (3x) compared to the XN Telecom industry average (1.1x).


Next Steps

Future Growth

How is BCE forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCE's forecast earnings growth (3.3% per year) is above the savings rate (1.4%).

Earnings vs Market: BCE's earnings (3.3% per year) are forecast to grow slower than the Canadian market (5.1% per year).

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

Revenue vs Market: BCE's revenue (1.6% per year) is forecast to grow slower than the Canadian market (3.4% per year).

High Growth Revenue: BCE's revenue (1.6% 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 (17.1%).


Next Steps

Past Performance

How has BCE performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCE has high quality earnings.

Growing Profit Margin: BCE's current net profit margins (12.7%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: BCE's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: BCE's earnings growth over the past year (9.2%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: BCE earnings growth over the past year (9.2%) exceeded the Telecom industry 7.3%.


Return on Equity

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


Next Steps

Financial Health

How is BCE's financial position?


Financial Position Analysis

Short Term Liabilities: BCE's short term assets (CA$5.5B) do not cover its short term liabilities (CA$9.8B).

Long Term Liabilities: BCE's short term assets (CA$5.5B) do not cover its long term liabilities (CA$29.0B).


Debt to Equity History and Analysis

Debt Level: BCE's debt to equity ratio (101.3%) is considered high.

Reducing Debt: BCE's debt to equity ratio has reduced from 117.4% to 101.3% over the past 5 years.

Debt Coverage: BCE's debt is well covered by operating cash flow (36.7%).

Interest Coverage: BCE's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BCE's dividend (5.87%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).

High Dividend: BCE's dividend (5.87%) is low compared to the top 25% of dividend payers in the Canadian market (8.52%).


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 (93.9%), 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 (94.4% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Mirko Bibic (52yo)

0.25

Tenure

CA$4,771,097

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 ($USD3.38M) is below average for companies of similar size in the Canadian market ($USD6.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mirko Bibic
CEO, President & Director0.25yrCA$4.77m0.00043% CA$224.2k
Glen LeBlanc
Executive VP & CFO4.75yrsCA$4.65m0.00056% CA$292.0k
Wade Oosterman
Vice Chair & Group President5yrsCA$6.89m0.014% CA$7.2m
Stephen Howe
Executive VP & CTO of Bell Canadano dataCA$3.49m0.0062% CA$3.2m
Thane Fotopoulos
Vice President of Investor Relationsno datano datano data
Michel Lalande
Senior VPno datano data0.000090% CA$46.9k
Bernard Le Duc
Chief Human Resources Officer & Executive VP of Corporate Servicesno datano data0.00099% CA$516.2k
Michael Cole
Executive VP & Chief Information Officer of Bell Canadano datano data0.0038% CA$2.0m
Thomas Little
President of Bell Business Markets - Bell Canada9.25yrsCA$3.46m0.00021% CA$109.5k
John Watson
Group President of Customer Experienceno dataCA$3.32m0.0017% CA$896.8k

4.9yrs

Average Tenure

54yo

Average Age

Experienced Management: BCE's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mirko Bibic
CEO, President & Director0.25yrCA$4.77m0.00043% CA$224.2k
Gordon Nixon
Independent Chair of the Board4yrsCA$443.75k0.0022% CA$1.2m
Barry Allen
Independent Director10.92yrsCA$225.00k0.0025% CA$1.3m
Ian Greenberg
Independent Director6.75yrsCA$212.50k0.0011% CA$578.7k
Karen Sheriff
Independent Director3yrsCA$207.50k0.00067% CA$349.3k
Robert Simmonds
Independent Director8.92yrsCA$212.50k0.012% CA$6.3m
Sophie Brochu
Independent Director9.92yrsCA$212.50k0.00014% CA$73.0k
David Denison
Independent Director7.5yrsCA$225.00k0.00013% CA$67.8k
Robert Brown
Independent Director10.92yrsCA$250.00k0.0039% CA$2.0m
Paul Weiss
Independent Director10.92yrsCA$250.00k0.00011% CA$57.4k

8.2yrs

Average Tenure

66yo

Average Age

Experienced Board: BCE's board of directors are considered experienced (8.2 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 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$52.139b
  • Shares outstanding: 904.24m
  • Website: https://www.bce.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCENYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
BCETSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1968
BCE1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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.PRGTSX (The Toronto Stock Exchange)PFD 1ST CL AGCACADFeb 2007
BCE.PRETSX (The Toronto Stock Exchange)PFD 1ST CL AECACADFeb 2007
BCE.PRFTSX (The Toronto Stock Exchange)PFD 1ST CL AFCACADFeb 2007
BCE.PRHTSX (The Toronto Stock Exchange)PFD 1ST CL AHCACADFeb 2007
BECE.FOTCPK (Pink Sheets LLC)PFD 1ST CL AHUSUSDFeb 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 segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services, including 40 live and on-demand channels on smartphones and tablets; roaming services; push-to-talk, field service management, worker safety, and mobility management solutions; and asset management, smart buildings, smart cities, fleet management, and other Internet of Things services. It also provides various 4G LTE and LTE-A smartphones and tablets, mobile Internet hubs and sticks, and mobile Wi-Fi devices, as well as smartwatches, Bell connected cars, trackers, smart homes, lifestyle products, and virtual reality products. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, and other communications services and products. It also provides home security, monitoring, and automation services; and satellite TV and connectivity services. In addition, this segment offers local exchange carrier and telecommunications services; sells wireline-related products; and buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services, sports and other event production, and broadcasting services. It owns and operates approximately 30 conventional TV stations; 29 specialty and 4 Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and approximately 200 websites and 30 apps. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:39
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.