BCE, Inc. (BCE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BCE, Inc.

Quebecor, Inc.

Uniserve Communications Corp.

TeraGo, Inc.

Why is BCE, Inc. ?

High Management Efficiency with a high ROCE of 10.08%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 4.17

The company has declared Negative results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 7,237 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 70.34%
DIVIDEND PER SHARE(HY) Lowest at CAD 5.53

With ROE of 16.70%, it has a very attractive valuation with a 1.63 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -31.73%, its profits have risen by 10.3% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 46.44%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.7% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.73% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to BCE, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is BCE, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

BCE, Inc.

-14.24%

-1.26

25.81%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.90%

EBIT Growth (5y)

0.02%

EBIT to Interest (avg)

4.17

Debt to EBITDA (avg)

3.20

Net Debt to Equity (avg)

2.20

Sales to Capital Employed (avg)

0.44

Tax Ratio

43.92%

Dividend Payout Ratio

2,232.79%

Pledged Shares

Institutional Holding

46.49%

ROCE (avg)

10.08%

ROE (avg)

14.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.68

EV to EBIT

12.26

EV to EBITDA

6.38

EV to Capital Employed

1.22

EV to Sales

2.76

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

9.96%

ROE (Latest)

16.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 39.27%

RAW MATERIAL COST(Y)

Fallen by 0.95% (YoY

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 7,237 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 70.34%

DIVIDEND PER SHARE(HY)

Lowest at CAD 5.53

PRE-TAX PROFIT(Q)

Lowest at CAD 886 MM

NET PROFIT(Q)

Lowest at CAD 619.73 MM

Here's what is working for BCE, Inc.

Inventory Turnover Ratio

Highest at 39.27% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 1,287 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for BCE, Inc.

Operating Cash Flow

Lowest at CAD 7,237 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Pre-Tax Profit

Lowest at CAD 886 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 619.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Dividend per share

Lowest at CAD 5.53

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 70.34%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)