BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
33.7 CAD
+0.08 (+0.24%)
We assign a fundamental rating of 3 out of 10 to BCE. BCE was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE is valied quite expensively at the moment, while 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.
- In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 7.85%, BCE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- BCE's Return On Equity of 27.48% is on the low side compared to the rest of the industry. BCE is outperformed by 73.33% of its industry peers.
- BCE has a worse Return On Invested Capital (4.52%) than 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- BCE has a Profit Margin of 25.21%. This is in the lower half of the industry: BCE underperforms 66.67% of its industry peers.
- BCE's Profit Margin has declined in the last couple of years.
- The Operating Margin of BCE (22.38%) is worse than 80.00% of its industry peers.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 67.92%, BCE is doing worse than 76.67% of the companies in the same industry.
- 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
- BCE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, BCE has about the same amount of shares outstanding.
- The number of shares outstanding for BCE has been increased compared to 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 0.73, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.73, BCE belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- 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 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.
- Looking at the Debt to Equity ratio, with a value of 1.57, BCE is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.92
WACC4.9%
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.
- 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.
- BCE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE is outperformed by 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%.
- BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
- 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
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.73% yearly.
- BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y0.73%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
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.
- 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 11.62 indicates a reasonable valuation of BCE.
- 73.33% of the companies in the same industry are cheaper than BCE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.54. BCE is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 12.39 indicates a correct valuation of BCE.
- BCE's Price/Forward Earnings ratio is rather expensive when compared to the industry. BCE is more expensive than 80.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. BCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 12.39 |
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 73.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
- BCE's earnings are expected to decrease with -3.30% 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-3.3%
5. Dividend
5.1 Amount
- BCE has a Yearly Dividend Yield of 5.32%, which is a nice return.
- BCE's Dividend Yield is rather good when compared to the industry average which is at 4.60. BCE pays more dividend than 90.00% of the companies in the same industry.
- BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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
- 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 slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
TSX:BCE (1/15/2026, 7:00:00 PM)
33.7
+0.08 (+0.24%)
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 Cap31.43B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts67.27
Price Target36.86 (9.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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%
PT rev (3m)2.65%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 12.39 | ||
| P/S | 1.28 | ||
| P/FCF | 7.95 | ||
| P/OCF | 4.3 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.79 |
EPS(TTM)2.9
EY8.61%
EPS(NY)2.72
Fwd EY8.07%
FCF(TTM)4.24
FCFY12.59%
OCF(TTM)7.83
OCFY23.24%
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
WACC4.9%
ROIC/WACC0.92
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-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
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 -9.15% 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%.