RE:So much bull Blue - have no issues with people that are pro-BCE, I still hold a fair chuink of it that I bought at lower prices. Sold half at $48 but and still hoping for more upside with the other half. That said, your analysis is greatly flawed. Just one example, asset values can go up becasue you bought more assets, or by simply re-valuing them to a higher value claiming an increase in their current market value.
However you spin it, BCE is psending more than they make on expenses, Capx and Dividends, even excluding non-cash expenses like depreciation. If your spend exceeds your income, you have to borrow to cover it, and by your own figures, debt is up a lot, gross income and net income are not.
It is fair to have a different view of this stock than the Bulls, but lets not just gloss over the issues either.
BlueDawn wrote: So much noise going on in the space.
Debt to pay dividends? No debt pays for asset acquisition through capex spend...
dividends not covered by eps? EPS includes depreciation of assets but doesn't include appreciation so it's skewed...
dividends not covered by free cash flow? Because capex is elevated as part of generational shift.
if you look at the debt increase vs asset increase
2019 debt: 28,153. vs now 38.5. = 10.5B. More debt
2019 assets: 60.1 vs now 74.2 = 14.1B more assets
the narrative dividends pay dividend is false as asset acquisitions offset the debt by 140%....
if debt paid dividends that would be less than 100%.
So that all said the generational capex spend is drawing down, non core assets are being converted to cash (5.7 B worth of cash for less than 2B worth of booked assets).
opex is being trimmed (layoffs to lean up the corporate payroll and dropping under performing source retail and media assets)
What gets me is this all in print on the annuals and in great detail but is not double clicked on by the analysts...