BCE Inc.
BCE Inc. Fundamental Analysis
BCE Inc. (BCPPF) shows strong financial fundamentals with a PE ratio of 2.17, profit margin of 25.87%, and ROE of 33.81%. The company generates $24.9B in annual revenue with weak year-over-year growth of -1.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BCPPF's fundamental strength across five key dimensions:
Efficiency Score
WeakBCPPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBCPPF trades at attractive valuation levels.
Growth Score
WeakBCPPF faces weak or negative growth trends.
Financial Health Score
WeakBCPPF carries high financial risk with limited liquidity.
Profitability Score
ExcellentBCPPF achieves industry-leading margins.
Key Financial Metrics
Is BCPPF Expensive or Cheap?
P/E Ratio
BCPPF trades at 2.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BCPPF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values BCE Inc. at 0.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.84 times EBITDA. This is generally considered low.
How Well Does BCPPF Make Money?
Net Profit Margin
For every $100 in sales, BCE Inc. keeps $25.87 as profit after all expenses.
Operating Margin
Core operations generate 22.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.81 in profit for every $100 of shareholder equity.
ROA
BCE Inc. generates $8.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BCE Inc. generates strong operating cash flow of $7.44B, reflecting robust business health.
Free Cash Flow
BCE Inc. generates strong free cash flow of $4.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.34 in free cash annually.
FCF Yield
BCPPF converts 28.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BCPPF Stacks Against Its Sector Peers
| Metric | BCPPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.17 | 21.28 | Better (Cheaper) |
| ROE | 33.81% | 1116.00% | Weak |
| Net Margin | 25.87% | -55475.00% (disorted) | Strong |
| Debt/Equity | 1.82 | 1.38 | Weak (High Leverage) |
| Current Ratio | 0.58 | 1.61 | Weak Liquidity |
| ROA | 8.06% | -204822.00% (disorted) | Weak |
BCPPF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BCE Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.30%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-89.36%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-13.30%
Industry Style: Growth, Technology, Streaming
Declining