BCE INC (BCE.CA) Fundamental Analysis & Valuation
TSX:BCE • CA05534B7604
Current stock price
35.54 CAD
+0.22 (+0.62%)
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
- In the past year BCE was profitable.
- BCE had a positive operating cash flow in the past year.
- Each year in the past 5 years BCE has been profitable.
- Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
- BCE has a worse Return On Assets (7.87%) than 65.52% of its industry peers.
- BCE has a Return On Equity of 27.39%. This is in the lower half of the industry: BCE underperforms 72.41% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.99%, BCE is doing worse than 79.31% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 5.39%.
| 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
- With a Profit Margin value of 25.77%, BCE is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
- BCE's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 22.15%, BCE is doing worse than 79.31% of the companies in the same industry.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- BCE has a worse Gross Margin (68.45%) than 75.86% 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.
- BCE has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for BCE has been increased compared to 5 years ago.
- Compared to 1 year ago, BCE has an improved debt to assets ratio.
2.2 Solvency
- BCE has an Altman-Z score of 0.73. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 0.73, BCE belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 12.50, BCE is doing worse than 79.31% of the companies in the same industry.
- BCE has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
- BCE's Debt to Equity ratio of 1.52 is on the low side compared to the rest of the industry. BCE is outperformed by 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 12.5 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.98
WACC5.07%
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 79.31% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
- BCE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE is outperformed by 79.31% 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.
- The Revenue has been growing slightly by 0.24% in the past year.
- BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.35% yearly.
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.
- Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.68% on average per year.
EPS Next Y-7.27%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
EPS Next 5Y5.39%
Revenue Next Year2.27%
Revenue Next 2Y1.8%
Revenue Next 3Y1.53%
Revenue Next 5Y1.68%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. BCE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.69, BCE is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 72.41% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.50, BCE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.69, 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 72.41% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (22.67), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.69 |
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 72.41% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE is valued a bit more expensive than the industry average as 79.31% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 6.93 |
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
- BCE has a Yearly Dividend Yield of 4.95%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.29, BCE pays a better dividend. On top of this BCE pays more dividend than 89.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
- The dividend of BCE decreases each year by -7.24%.
- 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)-7.24%
Div Incr Years16
Div Non Decr Years16
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 (3/24/2026, 7:00:00 PM)
35.54
+0.22 (+0.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners51.76%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap33.14B
Revenue(TTM)24.47B
Net Income(TTM)6.30B
Analysts67.62
Price Target37.12 (4.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend2.36
Dividend Growth(5Y)-7.24%
DP34.53%
Div Incr Years16
Div Non Decr Years16
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)-0.16%
PT rev (3m)0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.35 | ||
| P/FCF | 10.09 | ||
| P/OCF | 4.74 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)2.8
EY7.88%
EPS(NY)2.6
Fwd EY7.31%
FCF(TTM)3.52
FCFY9.91%
OCF(TTM)7.49
OCFY21.08%
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 | 0.73 |
F-Score7
WACC5.07%
ROIC/WACC0.98
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 Year2.27%
Revenue Next 2Y1.8%
Revenue Next 3Y1.53%
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.
How profitable is BCE INC (BCE.CA) stock?
BCE INC (BCE.CA) has a profitability rating of 3 / 10.
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.
Is the dividend of BCE INC sustainable?
The dividend rating of BCE INC (BCE.CA) is 8 / 10 and the dividend payout ratio is 34.53%.