BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
32.47 CAD
-0.07 (-0.22%)
We assign a fundamental rating of 3 out of 10 to BCE. BCE was compared to 29 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE is quite expensive at the moment. It does show a decent growth rate. BCE also has an excellent dividend rating.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.85%, BCE is doing worse than 68.97% of the companies in the same industry.
BCE's Return On Equity of 27.48% is on the low side compared to the rest of the industry. BCE is outperformed by 75.86% of its industry peers.
BCE has a Return On Invested Capital of 4.52%. This is amonst the worse of the industry: BCE underperforms 86.21% 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 5.01%.
| 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 68.97% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
With a Operating Margin value of 22.38%, BCE is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
BCE has a Gross Margin of 67.92%. This is in the lower half of the industry: BCE underperforms 79.31% 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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE is creating some value.
The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
BCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE has a worse debt to assets ratio.
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.
BCE has a Altman-Z score of 0.71. This is amongst the best in the industry. BCE outperforms 86.21% 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.
The Debt to FCF ratio of BCE (10.36) is worse than 82.76% 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: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.93
WACC4.83%
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.
Looking at the Current ratio, with a value of 0.58, BCE is doing worse than 86.21% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, BCE is doing worse than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -3.65% in the last year.
BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 0.11% 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)-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
Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 1.21% on average per year.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y2.13%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.20 indicates a reasonable valuation of BCE.
BCE's Price/Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 75.86% of the companies in the same industry.
BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
Based on the Price/Forward Earnings ratio of 11.94, the valuation of BCE can be described as reasonable.
Based on the Price/Forward Earnings ratio, BCE is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
BCE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 11.94 |
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 75.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 75.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -3.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.41%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.39, 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 2.41, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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
5.3 Sustainability
BCE pays out 43.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
TSX:BCE (11/25/2025, 7:00:00 PM)
32.47
-0.07 (-0.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap30.28B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target36.86 (13.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)2.65%
PT rev (3m)3.83%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 11.94 | ||
| P/S | 1.24 | ||
| P/FCF | 7.66 | ||
| P/OCF | 4.15 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.68 |
EPS(TTM)2.9
EY8.93%
EPS(NY)2.72
Fwd EY8.38%
FCF(TTM)4.24
FCFY13.06%
OCF(TTM)7.83
OCFY24.12%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number39.64
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 | 0.71 |
F-Score6
WACC4.83%
ROIC/WACC0.93
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-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y16.23%
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 of BCE INC (BCE.CA) stock?
ChartMill assigns a valuation rating of 3 / 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.
What are the PE and PB ratios of BCE INC (BCE.CA) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE.CA) is 11.2 and the Price/Book (PB) ratio is 1.35.
How sustainable is the dividend of BCE INC (BCE.CA) stock?
The dividend rating of BCE INC (BCE.CA) is 8 / 10 and the dividend payout ratio is 43.52%.