BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
32.5 CAD
-0.24 (-0.73%)
We assign a fundamental rating of 3 out of 10 to BCE. BCE was compared to 28 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 valied quite expensively at the moment, while it does show a decent growth rate. 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.
BCE had positive earnings in each of the past 5 years.
BCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 7.85%, BCE is not doing good in the industry: 64.29% 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 71.43% of the companies in the same industry.
BCE has a worse Return On Invested Capital (4.52%) than 82.14% 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 5.05%.
| 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 64.29% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
The Operating Margin of BCE (22.38%) is worse than 78.57% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 67.92%, BCE is doing worse than 75.00% 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
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 0.72, we must say that BCE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BCE (0.72) is better than 85.71% 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.
The Debt to FCF ratio of BCE (10.36) is worse than 78.57% 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.
With a Debt to Equity ratio value of 1.57, BCE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.93
WACC4.85%
2.3 Liquidity
A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
The Current ratio of BCE (0.58) is worse than 82.14% 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.
BCE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -3.65% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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 1.21% yearly.
Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y2.13%
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 11.21, which indicates a very decent valuation of BCE.
Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, BCE is valued rather cheaply.
The Price/Forward Earnings ratio is 11.95, which indicates a very decent valuation of BCE.
BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (23.23), we can say BCE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 11.95 |
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 71.43% 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 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.30% in the coming years.
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 6.27%, which is a nice return.
Compared to an average industry Dividend Yield of 5.23, BCE pays a better dividend. On top of this BCE pays more dividend than 92.86% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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
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 (1/2/2026, 7:00:00 PM)
32.5
-0.24 (-0.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.22%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap30.31B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts65.45
Price Target36.86 (13.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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)1.61%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 11.95 | ||
| P/S | 1.24 | ||
| P/FCF | 7.66 | ||
| P/OCF | 4.15 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.7 |
EPS(TTM)2.9
EY8.92%
EPS(NY)2.72
Fwd EY8.37%
FCF(TTM)4.24
FCFY13.05%
OCF(TTM)7.83
OCFY24.1%
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
WACC4.85%
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-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y1.21%
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 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.99%
EBIT Next 3Y26.65%
EBIT Next 5Y16.23%
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 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%.