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.
BCE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals 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 has a expensive valuation and it also scores bad on growth. 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.
- Of the past 5 years BCE 4 years were profitable.
- Of the past 5 years BCE 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 7.85%, BCE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- BCE has a Return On Equity of 27.48%. This is in the lower half of the industry: BCE underperforms 66.67% of its industry peers.
- The Return On Invested Capital of BCE (4.52%) is worse 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
- With a Profit Margin value of 25.21%, BCE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- BCE's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 22.38%, BCE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- BCE's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 67.92%, BCE is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- 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.
- BCE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
- Looking at the Altman-Z score, with a value of 0.75, BCE belongs to the top 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.
- BCE has a Debt to FCF ratio of 10.36. This is in the lower half of the industry: BCE underperforms 73.33% of its industry peers.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE has dependencies on debt 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
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- BCE has a Current ratio of 0.58. This is in the lower half of the industry: BCE underperforms 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.
- With a Quick ratio value of 0.55, BCE is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| 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.
- BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.57% yearly.
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
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.22% yearly.
- 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
- Based on the Price/Earnings ratio of 12.66, the valuation of BCE can be described as correct.
- 66.67% 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 (26.29), we can say BCE is valued rather cheaply.
- BCE is valuated correctly with a Price/Forward Earnings ratio of 13.09.
- 66.67% of the companies in the same industry are cheaper than BCE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (24.57), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
- BCE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BCE is more expensive than 73.33% of the companies in the same industry.
- 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
- BCE has a Yearly Dividend Yield of 5.84%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.94, BCE pays a better dividend. On top of this BCE pays more dividend than 96.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BCE pays a better dividend.
| 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%.