BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
33.74 CAD
+0.02 (+0.06%)
Taking everything into account, BCE scores 3 out of 10 in our fundamental rating. BCE was compared to 30 industry peers in the Diversified Telecommunication Services industry. BCE has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- In the past year BCE was profitable.
- BCE had a positive operating cash flow in the past year.
- In the past 5 years BCE has always been profitable.
- BCE had a positive operating cash flow in each 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 66.67% of its industry peers.
- The Return On Equity of BCE (27.48%) is worse than 73.33% of its industry peers.
- BCE has a worse Return On Invested Capital (4.52%) than 83.33% 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 66.67% of its industry peers.
- 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: 80.00% 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 worse Gross Margin (67.92%) than 76.67% 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
- 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.
- 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
- BCE has an Altman-Z score of 0.73. 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 0.73 is amongst the best of the industry. BCE outperforms 86.67% of its industry peers.
- 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 worse Debt to FCF ratio (10.36) than 80.00% 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.
- BCE has a worse Debt to Equity ratio (1.57) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.9
WACC5%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- With a Current ratio value of 0.58, BCE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
- The Quick ratio of BCE (0.55) is worse than 83.33% 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%.
- The Earnings Per Share has been decreasing by -2.78% on average over the past years.
- The Revenue has been growing slightly by 0.11% in the past year.
- 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
- The Earnings Per Share is expected to grow by 0.73% on average over the next years.
- The Revenue is expected to grow by 1.65% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 11.63, which indicates a very decent valuation of BCE.
- Based on the Price/Earnings ratio, BCE is valued a bit more expensive than 73.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, BCE is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.46, BCE is valued correctly.
- Based on the Price/Forward Earnings ratio, BCE is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
- When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (23.94), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.46 |
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.
- BCE's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- BCE has a Yearly Dividend Yield of 5.19%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.50, BCE pays a better dividend. On top of this BCE pays more dividend than 90.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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 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-5.62%
EPS Next 3Y-3.12%
TSX:BCE (1/20/2026, 7:00:00 PM)
33.74
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners47.26%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap31.46B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts67.27
Price Target36.81 (9.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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)2.51%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.46 | ||
| P/S | 1.28 | ||
| P/FCF | 7.96 | ||
| P/OCF | 4.31 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.79 |
EPS(TTM)2.9
EY8.6%
EPS(NY)2.71
Fwd EY8.03%
FCF(TTM)4.24
FCFY12.57%
OCF(TTM)7.83
OCFY23.21%
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 | 0.73 |
F-Score6
WACC5%
ROIC/WACC0.9
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%.