BCE INC (BCE.CA) Fundamental Analysis & Valuation
TSX:BCE • CA05534B7604
Current stock price
34.06 CAD
-1.2 (-3.4%)
Last:
This BCE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BCE.CA Profitability Analysis
1.1 Basic Checks
- BCE had positive earnings in the past year.
- In the past year BCE had a positive cash flow from operations.
- Each year in the past 5 years BCE has been profitable.
- BCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BCE's Return On Assets of 7.87% is on the low side compared to the rest of the industry. BCE is outperformed by 66.67% of its industry peers.
- The Return On Equity of BCE (27.39%) is worse than 73.33% of its industry peers.
- The Return On Invested Capital of BCE (4.99%) is worse than 80.00% of its industry peers.
- BCE had an Average Return On Invested Capital over the past 3 years of 5.24%. This is in line with the industry average of 5.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 27.39% | ||
| ROIC | 4.99% |
ROA(3y)3.66%
ROA(5y)3.79%
ROE(3y)12.87%
ROE(5y)12.56%
ROIC(3y)5.24%
ROIC(5y)5.38%
1.3 Margins
- BCE has a worse Profit Margin (25.77%) than 66.67% of its industry peers.
- BCE's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 22.15%, BCE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- BCE's Operating Margin has been stable in the last couple of years.
- BCE has a worse Gross Margin (68.45%) than 76.67% of its industry peers.
- In the last couple of years the Gross Margin of BCE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 25.77% | ||
| GM | 68.45% |
OM growth 3Y-0.74%
OM growth 5Y-0.52%
PM growth 3Y31.88%
PM growth 5Y18.74%
GM growth 3Y0.03%
GM growth 5Y-0.32%
2. BCE.CA Health Analysis
2.1 Basic Checks
- BCE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for BCE has been increased compared to 1 year ago.
- Compared to 5 years ago, BCE has more shares outstanding
- Compared to 1 year ago, BCE has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.72, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- BCE's Altman-Z score of 0.72 is amongst the best of the industry. BCE outperforms 86.67% of its industry peers.
- The Debt to FCF ratio of BCE is 12.50, which is on the high side as it means it would take BCE, 12.50 years of fcf income to pay off all of its debts.
- BCE has a Debt to FCF ratio of 12.50. This is amonst the worse of the industry: BCE underperforms 80.00% of its industry peers.
- BCE has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.52, BCE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 12.5 | ||
| Altman-Z | 0.72 |
ROIC/WACC1
WACC5.01%
2.3 Liquidity
- BCE has a Current Ratio of 0.58. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
- BCE has a worse Current ratio (0.58) than 80.00% of its industry peers.
- BCE has a Quick Ratio of 0.58. This is a bad value and indicates that BCE is not financially healthy enough and could expect problems in meeting its short term obligations.
- BCE has a Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. BCE.CA Growth Analysis
3.1 Past
- BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.89%.
- BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.57% yearly.
- Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 0.24% in the last year.
- Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 1.35% on average per year.
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y0.4%
Revenue growth 5Y1.35%
Sales Q2Q%-0.28%
3.2 Future
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
- The Revenue is expected to grow by 1.68% on average over the next years.
EPS Next Y-7.27%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
EPS Next 5Y5.39%
Revenue Next Year2.48%
Revenue Next 2Y1.89%
Revenue Next 3Y2.01%
Revenue Next 5Y1.68%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. BCE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.16 indicates a correct valuation of BCE.
- 73.33% of the companies in the same industry are cheaper than BCE, based on the Price/Earnings ratio.
- BCE is valuated cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.12, the valuation of BCE can be described as correct.
- Based on the Price/Forward Earnings ratio, BCE is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
- BCE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 73.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
5. BCE.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.99%, BCE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.35, BCE pays a better dividend. On top of this BCE pays more dividend than 90.00% of the companies listed in the same industry.
- BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
5.2 History
- The dividend of BCE decreases each year by -7.24%.
- BCE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 34.53% of the earnings are spent on dividend by BCE. This is a low number and sustainable payout ratio.
DP34.53%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
BCE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:BCE (4/2/2026, 7:00:00 PM)
34.06
-1.2 (-3.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners51.76%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap31.76B
Revenue(TTM)24.47B
Net Income(TTM)6.30B
Analysts67.62
Price Target37.52 (10.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
Yearly Dividend2.36
Dividend Growth(5Y)-7.24%
DP34.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-16 2026-03-16 (0.4375)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.6%
Min EPS beat(2)7.87%
Max EPS beat(2)9.34%
EPS beat(4)3
Avg EPS beat(4)3.91%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)7
Avg EPS beat(12)2.62%
EPS beat(16)10
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-1.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)3
Avg Revenue beat(12)-1.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)1.08%
PT rev (3m)1.81%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.3 | ||
| P/FCF | 9.67 | ||
| P/OCF | 4.55 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.8 |
EPS(TTM)2.8
EY8.22%
EPS(NY)2.6
Fwd EY7.62%
FCF(TTM)3.52
FCFY10.34%
OCF(TTM)7.49
OCFY22%
SpS26.24
BVpS24.69
TBVpS-7.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number39.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 27.39% | ||
| ROCE | 8.05% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 9.19% | ||
| OM | 22.15% | ||
| PM (TTM) | 25.77% | ||
| GM | 68.45% | ||
| FCFM | 13.42% |
ROA(3y)3.66%
ROA(5y)3.79%
ROE(3y)12.87%
ROE(5y)12.56%
ROIC(3y)5.24%
ROIC(5y)5.38%
ROICexc(3y)5.37%
ROICexc(5y)5.46%
ROICexgc(3y)9.69%
ROICexgc(5y)9.86%
ROCE(3y)8.9%
ROCE(5y)9.07%
ROICexgc growth 3Y-6.98%
ROICexgc growth 5Y-5.2%
ROICexc growth 3Y-5.76%
ROICexc growth 5Y-4.73%
OM growth 3Y-0.74%
OM growth 5Y-0.52%
PM growth 3Y31.88%
PM growth 5Y18.74%
GM growth 3Y0.03%
GM growth 5Y-0.32%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 12.5 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 70.69% | ||
| Cap/Sales | 15.13% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 65.56% | ||
| Profit Quality | 52.09% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.72 |
F-Score7
WACC5.01%
ROIC/WACC1
Cap/Depr(3y)85.13%
Cap/Depr(5y)93.81%
Cap/Sales(3y)17.53%
Cap/Sales(5y)18.89%
Profit Quality(3y)635.17%
Profit Quality(5y)427.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
EPS Next Y-7.27%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
EPS Next 5Y5.39%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y0.4%
Revenue growth 5Y1.35%
Sales Q2Q%-0.28%
Revenue Next Year2.48%
Revenue Next 2Y1.89%
Revenue Next 3Y2.01%
Revenue Next 5Y1.68%
EBIT growth 1Y-2.31%
EBIT growth 3Y-0.34%
EBIT growth 5Y0.82%
EBIT Next Year104.35%
EBIT Next 3Y28.13%
EBIT Next 5Y17.16%
FCF growth 1Y17.92%
FCF growth 3Y1.06%
FCF growth 5Y-1.58%
OCF growth 1Y-3.13%
OCF growth 3Y-5.64%
OCF growth 5Y-2.07%
BCE INC / BCE.CA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 3 / 10 to BCE.CA.
What is the valuation status for BCE stock?
ChartMill assigns a valuation rating of 2 / 10 to BCE INC (BCE.CA). This can be considered as Overvalued.
Can you provide the profitability details for BCE INC?
BCE INC (BCE.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of BCE INC (BCE.CA) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE.CA) is 12.16 and the Price/Book (PB) ratio is 1.38.
Can you provide the expected EPS growth for BCE stock?
The Earnings per Share (EPS) of BCE INC (BCE.CA) is expected to decline by -7.27% in the next year.