BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
32.54 CAD
-0.06 (-0.18%)
BCE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Diversified Telecommunication Services industry. BCE may be in some trouble as it scores bad on both profitability and health. BCE is quite expensive at the moment. It does show a decent growth rate. Finally BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BCE had positive earnings in the past year.
In the past year BCE had a positive cash flow from operations.
In the past 5 years BCE has always been profitable.
Each year in the past 5 years BCE 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: 68.97% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 27.48%, BCE is doing worse than 75.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.52%, BCE is doing worse than 86.21% 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 5.01%.
| 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
With a Profit Margin value of 25.21%, BCE is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
BCE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.38%, BCE is doing worse than 82.76% of the companies in the same industry.
BCE's Operating Margin has been stable in the last couple of years.
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.
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 | 22.38% | ||
| 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
BCE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BCE has more shares outstanding
BCE has a worse debt/assets ratio than last year.
2.2 Solvency
BCE has an Altman-Z score of 0.72. 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 0.72 is amongst the best of 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.
Looking at the Debt to FCF ratio, with a value of 10.36, BCE is doing worse than 82.76% of the companies in the same industry.
BCE has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.57, BCE is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
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.
BCE has a worse Current ratio (0.58) than 86.21% 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.
The Quick ratio of BCE (0.55) is worse than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
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.
BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
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
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.22 indicates a reasonable valuation of BCE.
Based on the Price/Earnings ratio, BCE is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (25.65), we can say BCE is valued rather cheaply.
BCE is valuated reasonably with a Price/Forward Earnings ratio of 11.96.
Based on the Price/Forward Earnings ratio, BCE is valued a bit more expensive than 75.86% of the companies in the same industry.
BCE is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
BCE's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.67 | ||
| EV/EBITDA | 6.69 |
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
BCE has a Yearly Dividend Yield of 5.41%, which is a nice return.
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.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| 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 been paying a dividend for at least 10 years, so it has 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
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 (11/24/2025, 7:00:00 PM)
32.54
-0.06 (-0.18%)
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 Cap30.34B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target36.86 (13.28%)
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 | 11.22 | ||
| Fwd PE | 11.96 | ||
| P/S | 1.24 | ||
| P/FCF | 7.67 | ||
| P/OCF | 4.15 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.9
EY8.91%
EPS(NY)2.72
Fwd EY8.36%
FCF(TTM)4.24
FCFY13.03%
OCF(TTM)7.83
OCFY24.07%
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 | 0.72 |
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 11.22 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%.