BCE INC (BCE.CA) Fundamental Analysis & Valuation
TSX:BCE • CA05534B7604
Current stock price
35.54 CAD
+0.22 (+0.62%)
Last:
This BCE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BCE.CA Profitability Analysis
1.1 Basic Checks
- In the past year BCE was profitable.
- In the past year BCE had a positive cash flow from operations.
- 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 has a worse Return On Assets (7.87%) than 65.52% of its industry peers.
- With a Return On Equity value of 27.39%, BCE is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
- BCE's Return On Invested Capital of 4.99% is on the low side compared to the rest of the industry. BCE is outperformed by 79.31% 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 5.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 27.39% | ||
| ROIC | 4.99% |
ROA(3y)3.66%
ROA(5y)3.79%
ROE(3y)12.87%
ROE(5y)12.56%
ROIC(3y)5.24%
ROIC(5y)5.38%
1.3 Margins
- The Profit Margin of BCE (25.77%) is worse than 65.52% of its industry peers.
- In the last couple of years the Profit Margin of BCE has grown nicely.
- BCE's Operating Margin of 22.15% is on the low side compared to the rest of the industry. BCE is outperformed by 79.31% of its industry peers.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- BCE has a Gross Margin of 68.45%. This is in the lower half of the industry: BCE underperforms 75.86% of its industry peers.
- BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 25.77% | ||
| GM | 68.45% |
OM growth 3Y-0.74%
OM growth 5Y-0.52%
PM growth 3Y31.88%
PM growth 5Y18.74%
GM growth 3Y0.03%
GM growth 5Y-0.32%
2. BCE.CA Health Analysis
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 more shares outstanding
- The number of shares outstanding for BCE has been increased compared to 5 years ago.
- BCE has a better debt/assets ratio than last year.
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.
- BCE has a better Altman-Z score (0.73) than 86.21% of its industry peers.
- The Debt to FCF ratio of BCE is 12.50, which is on the high side as it means it would take BCE, 12.50 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BCE (12.50) is worse than 79.31% of its industry peers.
- A Debt/Equity ratio of 1.52 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 1.52, BCE is doing worse than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 12.5 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.98
WACC5.07%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.58, BCE is doing worse than 79.31% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.55, BCE is doing worse than 79.31% of the companies in the same industry.
| 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.
- Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.57% on average per year.
- BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.24%.
- BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.35% yearly.
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y0.4%
Revenue growth 5Y1.35%
Sales Q2Q%-0.28%
3.2 Future
- The Earnings Per Share is expected to grow by 5.39% on average over the next years.
- Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.68% on average per year.
EPS Next Y-7.27%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
EPS Next 5Y5.39%
Revenue Next Year2.27%
Revenue Next 2Y1.8%
Revenue Next 3Y1.53%
Revenue Next 5Y1.68%
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. BCE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.69 indicates a correct valuation of BCE.
- Based on the Price/Earnings ratio, BCE is valued a bit more expensive than the industry average as 72.41% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (25.50), we can say BCE is valued rather cheaply.
- BCE is valuated correctly with a Price/Forward Earnings ratio of 13.69.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 72.41% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, BCE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 72.41% of the companies listed 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 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
5. BCE.CA Dividend Analysis
5.1 Amount
- BCE has a Yearly Dividend Yield of 4.95%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.29, BCE pays a better dividend. On top of this BCE pays more dividend than 89.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
- The dividend of BCE decreases each year by -7.24%.
- 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)-7.24%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
- 34.53% of the earnings are spent on dividend by BCE. This is a low number and sustainable payout ratio.
DP34.53%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
BCE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:BCE (3/24/2026, 7:00:00 PM)
35.54
+0.22 (+0.62%)
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 Owners51.76%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap33.14B
Revenue(TTM)24.47B
Net Income(TTM)6.30B
Analysts67.62
Price Target37.12 (4.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend2.36
Dividend Growth(5Y)-7.24%
DP34.53%
Div Incr Years16
Div Non Decr Years16
Ex-Date03-16 2026-03-16 (0.4375)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.6%
Min EPS beat(2)7.87%
Max EPS beat(2)9.34%
EPS beat(4)3
Avg EPS beat(4)3.91%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)7
Avg EPS beat(12)2.62%
EPS beat(16)10
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-1.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)3
Avg Revenue beat(12)-1.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)-0.16%
PT rev (3m)0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.35 | ||
| P/FCF | 10.09 | ||
| P/OCF | 4.74 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)2.8
EY7.88%
EPS(NY)2.6
Fwd EY7.31%
FCF(TTM)3.52
FCFY9.91%
OCF(TTM)7.49
OCFY21.08%
SpS26.24
BVpS24.69
TBVpS-7.98
PEG (NY)N/A
PEG (5Y)N/A
Graham Number39.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 27.39% | ||
| ROCE | 8.05% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 9.19% | ||
| OM | 22.15% | ||
| PM (TTM) | 25.77% | ||
| GM | 68.45% | ||
| FCFM | 13.42% |
ROA(3y)3.66%
ROA(5y)3.79%
ROE(3y)12.87%
ROE(5y)12.56%
ROIC(3y)5.24%
ROIC(5y)5.38%
ROICexc(3y)5.37%
ROICexc(5y)5.46%
ROICexgc(3y)9.69%
ROICexgc(5y)9.86%
ROCE(3y)8.9%
ROCE(5y)9.07%
ROICexgc growth 3Y-6.98%
ROICexgc growth 5Y-5.2%
ROICexc growth 3Y-5.76%
ROICexc growth 5Y-4.73%
OM growth 3Y-0.74%
OM growth 5Y-0.52%
PM growth 3Y31.88%
PM growth 5Y18.74%
GM growth 3Y0.03%
GM growth 5Y-0.32%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 12.5 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 70.69% | ||
| Cap/Sales | 15.13% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 65.56% | ||
| Profit Quality | 52.09% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.73 |
F-Score7
WACC5.07%
ROIC/WACC0.98
Cap/Depr(3y)85.13%
Cap/Depr(5y)93.81%
Cap/Sales(3y)17.53%
Cap/Sales(5y)18.89%
Profit Quality(3y)635.17%
Profit Quality(5y)427.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
EPS Next Y-7.27%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
EPS Next 5Y5.39%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y0.4%
Revenue growth 5Y1.35%
Sales Q2Q%-0.28%
Revenue Next Year2.27%
Revenue Next 2Y1.8%
Revenue Next 3Y1.53%
Revenue Next 5Y1.68%
EBIT growth 1Y-2.31%
EBIT growth 3Y-0.34%
EBIT growth 5Y0.82%
EBIT Next Year104.35%
EBIT Next 3Y28.13%
EBIT Next 5Y17.16%
FCF growth 1Y17.92%
FCF growth 3Y1.06%
FCF growth 5Y-1.58%
OCF growth 1Y-3.13%
OCF growth 3Y-5.64%
OCF growth 5Y-2.07%
BCE INC / BCE.CA Fundamental Analysis 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 -7.27% 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 34.53%.