BCE INC (BCE.CA) Fundamental Analysis & Valuation
TSX:BCE • CA05534B7604
35.46 CAD
-0.09 (-0.25%)
Last: Mar 6, 2026, 07:00 PM
This BCE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall BCE gets a fundamental rating of 2 out of 10. We evaluated BCE against 30 industry peers in the Diversified Telecommunication Services industry. BCE may be in some trouble as it scores bad on both profitability and health. BCE does not seem to be growing, but still is valued expensively. Finally BCE also has an excellent dividend rating.
1. BCE.CA Profitability Analysis
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 4 of the past 5 years.
- BCE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BCE's Return On Assets of 7.85% is on the low side compared to the rest of the industry. BCE is outperformed by 60.00% of its industry peers.
- BCE's Return On Equity of 27.48% is on the low side compared to the rest of the industry. BCE is outperformed by 66.67% of its industry peers.
- BCE has a worse Return On Invested Capital (4.52%) than 73.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 5.00%.
| Industry Rank | Sector 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%
1.3 Margins
- BCE has a worse Profit Margin (25.21%) than 60.00% of its industry peers.
- BCE's Profit Margin has declined in the last couple of years.
- BCE has a Operating Margin of 22.38%. This is in the lower half of the industry: BCE underperforms 73.33% of its industry peers.
- BCE's Operating Margin has been stable in the last couple of years.
- BCE has a worse Gross Margin (67.92%) than 70.00% of its industry peers.
- BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. BCE.CA Health Analysis
2.1 Basic Checks
- BCE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for BCE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
- With an excellent Altman-Z score value of 0.75, BCE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- The Debt to FCF ratio of BCE is 10.36, which is on the high side as it means it would take BCE, 10.36 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BCE (10.36) is worse than 73.33% 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.
- With a Debt to Equity ratio value of 1.57, BCE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.89
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's Current ratio of 0.58 is on the low side compared to the rest of the industry. BCE is outperformed by 76.67% 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 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. BCE.CA Growth Analysis
3.1 Past
- The earnings per share for BCE have decreased by -7.89% in the last year.
- Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.57% on average per year.
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.28%
3.2 Future
- Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 5.22% on average per year.
- The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y-3.29%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
EPS Next 5Y5.22%
Revenue Next Year2.11%
Revenue Next 2Y1.65%
Revenue Next 3Y1.57%
Revenue Next 5Y1.51%
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.
4. BCE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.66, 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 66.67% of the companies listed in the same industry.
- BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
- BCE is valuated correctly with a Price/Forward Earnings ratio of 13.09.
- BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 66.67% of the companies in the same industry.
- BCE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.09 |
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.
- Based on the Price/Free Cash Flow ratio, BCE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
5. BCE.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.84%, BCE is a good candidate for dividend investing.
- BCE's Dividend Yield is rather good when compared to the industry average which is at 4.94. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years16
Div Non Decr Years16
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP43.52%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
BCE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:BCE (3/6/2026, 7:00:00 PM)
35.46
-0.09 (-0.25%)
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 Owners47.26%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap33.07B
Revenue(TTM)N/A
Net Income(TTM)6.17B
Analysts68.18
Price Target37.12 (4.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date03-16 2026-03-16 (0.4375)
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)0.86%
PT rev (3m)0.72%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.09 | ||
| P/S | 1.35 | ||
| P/FCF | 8.36 | ||
| P/OCF | 4.53 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.95 |
EPS(TTM)2.8
EY7.9%
EPS(NY)2.71
Fwd EY7.64%
FCF(TTM)4.24
FCFY11.96%
OCF(TTM)7.83
OCFY22.09%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number38.95
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC5.07%
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)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
EPS Next Y-3.29%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
EPS Next 5Y5.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.28%
Revenue Next Year2.11%
Revenue Next 2Y1.65%
Revenue Next 3Y1.57%
Revenue Next 5Y1.51%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.65%
EBIT Next 3Y26.26%
EBIT Next 5Y15.84%
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 2 / 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 2 / 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 -3.29% 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%.