BCE INC (BCE.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:BCE • CA05534B7604

35.95 CAD
+0.37 (+1.04%)
Last: Feb 4, 2026, 07:00 PM
Fundamental Rating

3

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. BCE has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, BCE is valued expensive at the moment. BCE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • BCE had positive earnings in the past year.
  • BCE had a positive operating cash flow in the past year.
  • BCE had positive earnings in each of the past 5 years.
  • In the past 5 years BCE always reported a positive cash flow from operatings.
BCE.CA Yearly Net Income VS EBIT VS OCF VS FCFBCE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

  • The Return On Assets of BCE (7.85%) is worse than 66.67% of its industry peers.
  • BCE has a worse Return On Equity (27.48%) than 73.33% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.52%, BCE is doing worse than 83.33% of the companies in the same industry.
  • 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 5.00%.
Industry RankSector Rank
ROA 7.85%
ROE 27.48%
ROIC 4.52%
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)4.9%
ROIC(5y)4.97%
BCE.CA Yearly ROA, ROE, ROICBCE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • BCE's Profit Margin of 25.21% is on the low side compared to the rest of the industry. BCE is outperformed by 66.67% of its industry peers.
  • In the last couple of years the Profit Margin of BCE has declined.
  • Looking at the Operating Margin, with a value of 22.38%, BCE is doing worse than 80.00% 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.
  • With a Gross Margin value of 67.92%, BCE is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
  • BCE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.38%
PM (TTM) 25.21%
GM 67.92%
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%
BCE.CA Yearly Profit, Operating, Gross MarginsBCE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BCE is destroying value.
  • Compared to 1 year ago, BCE has about the same amount of shares outstanding.
  • The number of shares outstanding for BCE has been increased compared to 5 years ago.
  • The debt/assets ratio for BCE is higher compared to a year ago.
BCE.CA Yearly Shares OutstandingBCE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
BCE.CA Yearly Total Debt VS Total AssetsBCE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

  • BCE has an Altman-Z score of 0.75. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
  • BCE's Altman-Z score of 0.75 is amongst the best of the industry. BCE outperforms 86.67% of its industry peers.
  • BCE has a debt to FCF ratio of 10.36. This is a negative value and a sign of low solvency as BCE would need 10.36 years to pay back of all of its debts.
  • BCE has a worse Debt to FCF ratio (10.36) than 80.00% of its industry peers.
  • BCE has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
  • BCE has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: BCE underperforms 73.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 10.36
Altman-Z 0.75
ROIC/WACC0.89
WACC5.08%
BCE.CA Yearly LT Debt VS Equity VS FCFBCE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
  • The Current ratio of BCE (0.58) is worse than 83.33% 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.
  • Looking at the Quick ratio, with a value of 0.55, BCE is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.58
Quick Ratio 0.55
BCE.CA Yearly Current Assets VS Current LiabilitesBCE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
  • 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 small growth in Revenue. The Revenue has grown by 0.11% in the last year.
  • The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%

3.2 Future

  • The Earnings Per Share is expected to grow by 0.73% on average over the next years.
  • BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BCE.CA Yearly Revenue VS EstimatesBCE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
BCE.CA Yearly EPS VS EstimatesBCE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.40, the valuation of BCE can be described as correct.
  • 73.33% of the companies in the same industry are cheaper than BCE, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (28.25), we can say BCE is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 13.28, the valuation of BCE can be described as correct.
  • 80.00% of the companies in the same industry are cheaper than BCE, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. BCE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.4
Fwd PE 13.28
BCE.CA Price Earnings VS Forward Price EarningsBCE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 a bit more expensive than 73.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.48
EV/EBITDA 6.99
BCE.CA Per share dataBCE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • BCE's earnings are expected to decrease with -3.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • BCE has a Yearly Dividend Yield of 5.09%, which is a nice return.
  • Compared to an average industry Dividend Yield of 4.45, 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 1.82.
Industry RankSector Rank
Dividend Yield 5.09%

5.2 History

  • The dividend of BCE has a limited annual growth rate of 4.82%.
  • BCE has paid a dividend for at least 10 years, which is 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
BCE.CA Yearly Dividends per shareBCE.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

  • 43.52% of the earnings are spent on dividend by BCE. This is a bit on the high side, but may be sustainable.
  • BCE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
BCE.CA Yearly Income VS Free CF VS DividendBCE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
BCE.CA Dividend Payout.BCE.CA Dividend Payout, showing the Payout Ratio.BCE.CA Dividend Payout.PayoutRetained Earnings

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BCE INC

TSX:BCE (2/4/2026, 7:00:00 PM)

35.95

+0.37 (+1.04%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-06
Earnings (Next)02-05
Inst Owners47.26%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap33.52B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts67.27
Price Target36.81 (2.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.09%
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.44%
Min EPS beat(2)-12.22%
Max EPS beat(2)9.34%
EPS beat(4)3
Avg EPS beat(4)4.21%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)5
Avg EPS beat(8)2.18%
EPS beat(12)6
Avg EPS beat(12)1.77%
EPS beat(16)10
Avg EPS beat(16)2.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.91%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)3
Avg Revenue beat(16)-0.9%
PT rev (1m)-0.14%
PT rev (3m)2.41%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 12.4
Fwd PE 13.28
P/S 1.37
P/FCF 8.48
P/OCF 4.59
P/B 1.49
P/tB N/A
EV/EBITDA 6.99
EPS(TTM)2.9
EY8.07%
EPS(NY)2.71
Fwd EY7.53%
FCF(TTM)4.24
FCFY11.8%
OCF(TTM)7.83
OCFY21.79%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number39.64
Profitability
Industry RankSector Rank
ROA 7.85%
ROE 27.48%
ROCE 8.25%
ROIC 4.52%
ROICexc 4.55%
ROICexgc 8.5%
OM 22.38%
PM (TTM) 25.21%
GM 67.92%
FCFM 16.15%
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%
ROICexgc growth 3Y1.14%
ROICexgc 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-Score6
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 10.36
Debt/EBITDA 3.32
Cap/Depr 65.44%
Cap/Sales 13.68%
Interest Coverage 2.91
Cash Conversion 68.91%
Profit Quality 64.08%
Current Ratio 0.58
Quick Ratio 0.55
Altman-Z 0.75
F-Score6
WACC5.08%
ROIC/WACC0.89
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)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
EPS Next 5Y0.73%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.99%
EBIT Next 3Y26.65%
EBIT Next 5Y16.09%
FCF growth 1Y77.12%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-3.63%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%

BCE INC / BCE.CA 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 -9.1% 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 43.52%.