BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - TSX:BCE - CA05534B7604 - Common Stock
33.46 CAD
+0.58 (+1.76%)
BCE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 31 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 valued expensive and it does not seem to be growing. Finally BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BCE was profitable.
In the past year BCE had a positive cash flow from operations.
BCE had positive earnings in each of the past 5 years.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.61%, BCE is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
The Return On Equity of BCE (2.40%) is worse than 80.65% of its industry peers.
BCE has a worse Return On Invested Capital (5.04%) than 77.42% 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 5.44%.
The 3 year average ROIC (4.90%) for BCE is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROIC | 5.04% |
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's Profit Margin of 1.77% is on the low side compared to the rest of the industry. BCE is outperformed by 80.65% of its industry peers.
BCE's Profit Margin has declined in the last couple of years.
The Operating Margin of BCE (22.50%) is worse than 80.65% of its industry peers.
In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
With a Gross Margin value of 67.94%, BCE is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
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 | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
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.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
Compared to 5 years ago, BCE has more shares outstanding
The debt/assets ratio for BCE is higher compared to a year ago.
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.
With an excellent Altman-Z score value of 0.71, BCE belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
The Debt to FCF ratio of BCE is 9.25, which is on the high side as it means it would take BCE, 9.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BCE (9.25) is worse than 77.42% of its industry peers.
BCE has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.80, BCE is doing worse than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.01
WACC5%
2.3 Liquidity
BCE has a Current Ratio of 0.61. 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 Current ratio of BCE (0.61) is worse than 80.65% of its industry peers.
BCE has a Quick Ratio of 0.61. 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 Quick ratio, with a value of 0.57, BCE is doing worse than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -6.84% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -0.66%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
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 1.52% on average per year.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
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
Based on the Price/Earnings ratio of 11.70, the valuation of BCE can be described as reasonable.
BCE's Price/Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 70.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (27.50), we can say BCE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.18, the valuation of BCE can be described as correct.
BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 77.42% of the companies in the same industry.
BCE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
70.97% 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 74.19% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -3.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.32%, BCE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.30, BCE pays a better dividend. On top of this BCE pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BCE pays a better dividend.
| 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 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
739.72% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
TSX:BCE (10/10/2025, 7:00:00 PM)
33.46
+0.58 (+1.76%)
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 Cap31.20B
Analysts55
Price Target35.9 (7.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)0.76%
PT rev (3m)3.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.28 | ||
| P/FCF | 7.68 | ||
| P/OCF | 4.17 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.46 |
EPS(TTM)2.86
EY8.55%
EPS(NY)2.75
Fwd EY8.21%
FCF(TTM)4.36
FCFY13.02%
OCF(TTM)8.03
OCFY23.99%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
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%
ROICexcg growth 3Y1.14%
ROICexcg 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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.71 |
F-Score5
WACC5%
ROIC/WACC1.01
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%