BCE Inc.
BCE Inc. Fundamental Analysis
BCE Inc. (BECEF) shows strong financial fundamentals with a PE ratio of 2.70, profit margin of 26.26%, and ROE of 34.29%. The company generates $24.6B 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 45.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BECEF's fundamental strength across five key dimensions:
Efficiency Score
WeakBECEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBECEF trades at attractive valuation levels.
Growth Score
WeakBECEF faces weak or negative growth trends.
Financial Health Score
WeakBECEF carries high financial risk with limited liquidity.
Profitability Score
ExcellentBECEF achieves industry-leading margins.
Key Financial Metrics
Is BECEF Expensive or Cheap?
P/E Ratio
BECEF trades at 2.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BECEF's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values BCE Inc. at 0.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.02 times EBITDA. This is generally considered low.
How Well Does BECEF Make Money?
Net Profit Margin
For every $100 in sales, BCE Inc. keeps $26.26 as profit after all expenses.
Operating Margin
Core operations generate 78.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.29 in profit for every $100 of shareholder equity.
ROA
BCE Inc. generates $8.17 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 $7.34B, reflecting robust business health.
Free Cash Flow
BCE Inc. generates strong free cash flow of $3.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.27 in free cash annually.
FCF Yield
BECEF converts 22.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
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
0.29
vs 25 benchmark
How BECEF Stacks Against Its Sector Peers
| Metric | BECEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.70 | 21.28 | Better (Cheaper) |
| ROE | 34.29% | 1116.00% | Weak |
| Net Margin | 26.26% | -55491.00% (disorted) | Strong |
| Debt/Equity | 1.82 | 1.38 | Weak (High Leverage) |
| Current Ratio | 0.58 | 1.61 | Weak Liquidity |
| ROA | 8.17% | -204827.00% (disorted) | Weak |
BECEF 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