BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - TSX:BCE - CA05534B7604 - Common Stock
33.46 CAD
-0.13 (-0.39%)
BCE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE has a expensive valuation and it also scores bad on growth. Finally BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCE was profitable.
In the past year BCE had a positive cash flow from operations.
In the past 5 years BCE has always been profitable.
In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
BCE has a worse Return On Assets (0.61%) than 83.33% of its industry peers.
BCE's Return On Equity of 2.40% is on the low side compared to the rest of the industry. BCE is outperformed by 83.33% of its industry peers.
BCE has a Return On Invested Capital of 5.04%. This is amonst the worse of the industry: BCE underperforms 80.00% of its industry peers.
BCE had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 5.44%.
The 3 year average ROIC (4.90%) for BCE is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROIC | 5.04% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
1.3 Margins
The Profit Margin of BCE (1.77%) is worse than 83.33% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
BCE's Operating Margin of 22.50% is on the low side compared to the rest of the industry. BCE is outperformed by 83.33% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
The Gross Margin of BCE (67.94%) is worse than 76.67% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
OM growth 3Y0.29%
OM growth 5Y-0.91%
PM growth 3Y-61.33%
PM growth 5Y-44.58%
GM growth 3Y-0.23%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
BCE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE has more shares outstanding
BCE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that BCE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, BCE belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
BCE has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as BCE would need 9.25 years to pay back of all of its debts.
The Debt to FCF ratio of BCE (9.25) is worse than 80.00% of its industry peers.
BCE has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
BCE has a Debt to Equity ratio of 1.80. This is in the lower half of the industry: BCE underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.71 |
ROIC/WACC1
WACC5.03%
2.3 Liquidity
BCE has a Current Ratio of 0.61. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BCE (0.61) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.57 indicates that BCE may have some problems paying its short term obligations.
BCE has a Quick ratio of 0.57. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.84%.
Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
Looking at the last year, BCE shows a decrease in Revenue. The Revenue has decreased by -0.66% in the last year.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
3.2 Future
The Earnings Per Share is expected to grow by 1.20% on average over the next years.
The Revenue is expected to grow by 2.08% on average over the next years.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BCE is valuated reasonably with a Price/Earnings ratio of 11.70.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, BCE is valued rather cheaply.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of BCE.
BCE's Price/Forward Earnings ratio is rather expensive when compared to the industry. BCE is more expensive than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, BCE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
73.33% of the companies in the same industry are cheaper than BCE, based on the Enterprise Value to EBITDA ratio.
BCE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BCE is more expensive than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -3.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.46%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 6.66. BCE pays more dividend than 96.67% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
5.2 History
The dividend of BCE has a limited annual growth rate of 4.82%.
BCE has been paying a dividend for at least 10 years, so it has a reliable track record.
BCE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
739.72% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
BCE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
TSX:BCE (9/12/2025, 7:00:00 PM)
33.46
-0.13 (-0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap31.20B
Analysts55
Price Target35.9 (7.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.46% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)3.23%
PT rev (3m)3.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 12.16 | ||
| P/S | 1.28 | ||
| P/FCF | 7.68 | ||
| P/OCF | 4.17 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.46 |
EPS(TTM)2.86
EY8.55%
EPS(NY)2.75
Fwd EY8.22%
FCF(TTM)4.36
FCFY13.02%
OCF(TTM)8.03
OCFY23.99%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
ROICexc(3y)5.01%
ROICexc(5y)5.05%
ROICexgc(3y)9.15%
ROICexgc(5y)9.15%
ROCE(3y)9.37%
ROCE(5y)9.44%
ROICexcg growth 3Y1.14%
ROICexcg growth 5Y-3.03%
ROICexc growth 3Y0.85%
ROICexc growth 5Y-2.9%
OM growth 3Y0.29%
OM growth 5Y-0.91%
PM growth 3Y-61.33%
PM growth 5Y-44.58%
GM growth 3Y-0.23%
GM growth 5Y-0.19%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.71 |
F-Score5
WACC5.03%
ROIC/WACC1
Cap/Depr(3y)97.8%
Cap/Depr(5y)98.75%
Cap/Sales(3y)19.56%
Cap/Sales(5y)19.53%
Profit Quality(3y)656.86%
Profit Quality(5y)446%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.2%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.62%
Revenue Next 2Y2.23%
Revenue Next 3Y1.77%
Revenue Next 5Y2.08%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.66%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%