BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
33.62 CAD
+0.7 (+2.13%)
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. While showing a medium growth rate, BCE is valued expensive at the moment. 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.
- BCE had positive earnings in each of the past 5 years.
- In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
- BCE has a worse Return On Assets (7.85%) than 66.67% of its industry peers.
- The Return On Equity of BCE (27.48%) is worse than 73.33% of its industry peers.
- With a Return On Invested Capital value of 4.52%, BCE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- 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 Profit Margin of 25.21%. This is in the lower half of the industry: BCE underperforms 66.67% 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 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.
- BCE has a Gross Margin of 67.92%. This is in the lower half of the industry: BCE underperforms 76.67% of its industry peers.
- 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.
- The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BCE has been increased compared to 5 years ago.
- The debt/assets ratio for BCE is higher compared to a year ago.
2.2 Solvency
- BCE has an Altman-Z score of 0.72. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
- BCE has a better Altman-Z score (0.72) than 86.67% 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.
- BCE's Debt to FCF ratio of 10.36 is on the low side compared to the rest of the industry. BCE is outperformed by 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 | 0.72 |
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.
- BCE has a Current ratio of 0.58. This is amonst the worse of the industry: BCE underperforms 83.33% 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.
- Looking at the Quick ratio, with a value of 0.55, BCE is doing worse than 83.33% of the companies in the same industry.
| 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.
- 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 small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
- 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
- Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 0.73% on average per year.
- Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 11.59, the valuation of BCE can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 73.33% of the companies listed in the same industry.
- BCE is valuated cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of BCE.
- BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 76.67% 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 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 12.36 |
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 73.33% of the companies listed in the same industry.
- 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 | 7.93 | ||
| EV/EBITDA | 6.72 |
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
- With a Yearly Dividend Yield of 5.32%, BCE is a good candidate for dividend investing.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.91, 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
- 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 (1/14/2026, 7:00:00 PM)
33.62
+0.7 (+2.13%)
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 Cap31.35B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts67.27
Price Target36.86 (9.64%)
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 | 11.59 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.28 | ||
| P/FCF | 7.93 | ||
| P/OCF | 4.29 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)2.9
EY8.63%
EPS(NY)2.72
Fwd EY8.09%
FCF(TTM)4.24
FCFY12.61%
OCF(TTM)7.83
OCFY23.3%
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
WACC4.9%
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%.