BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BCE - CA05534B7604 - Common Stock
32.6 CAD
+0.13 (+0.4%)
Overall BCE gets a fundamental rating of 3 out of 10. We evaluated BCE against 29 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
BCE had positive earnings in the past year.
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's Return On Assets of 7.85% is on the low side compared to the rest of the industry. BCE is outperformed by 68.97% of its industry peers.
BCE has a Return On Equity of 27.48%. This is in the lower half of the industry: BCE underperforms 75.86% of its industry peers.
BCE has a worse Return On Invested Capital (4.52%) than 86.21% 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 5.01%.
| 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
The Profit Margin of BCE (25.21%) is worse than 68.97% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
Looking at the Operating Margin, with a value of 22.38%, BCE is doing worse than 82.76% of the companies in the same industry.
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 79.31% of the companies in the same industry.
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 | 22.38% | ||
| 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.
BCE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCE has been increased compared to 5 years ago.
BCE has a worse debt/assets ratio than last year.
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.
The Altman-Z score of BCE (0.72) is better than 86.21% of its industry peers.
The Debt to FCF ratio of BCE is 10.36, which is on the high side as it means it would take BCE, 10.36 years of fcf income to pay off all of its debts.
BCE has a Debt to FCF ratio of 10.36. This is amonst the worse of the industry: BCE underperforms 82.76% 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's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. BCE is outperformed by 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.93
WACC4.84%
2.3 Liquidity
BCE has a Current 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.
With a Current ratio value of 0.58, BCE is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, BCE is doing worse than 86.21% 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.
BCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.78% yearly.
Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 0.11% in the last 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
The Earnings Per Share is expected to grow by 1.21% on average over the next years.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y2.13%
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
BCE is valuated reasonably with a Price/Earnings ratio of 11.24.
Based on the Price/Earnings ratio, BCE is valued a bit more expensive than 75.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. BCE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.99 indicates a reasonable valuation of BCE.
BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 75.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (36.12), we can say BCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
75.86% 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 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 5.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.39, 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 2.41, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.82%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
BCE pays out 43.52% of its income as dividend. 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-3.28%
TSX:BCE (11/26/2025, 7:00:00 PM)
32.6
+0.13 (+0.4%)
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 Cap30.40B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target36.86 (13.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)2.65%
PT rev (3m)3.83%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.24 | ||
| P/FCF | 7.69 | ||
| P/OCF | 4.16 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.9
EY8.9%
EPS(NY)2.72
Fwd EY8.34%
FCF(TTM)4.24
FCFY13.01%
OCF(TTM)7.83
OCFY24.03%
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
WACC4.84%
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-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
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 of BCE INC (BCE.CA) stock?
ChartMill assigns a valuation rating of 3 / 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.
What are the PE and PB ratios of BCE INC (BCE.CA) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE.CA) is 11.24 and the Price/Book (PB) ratio is 1.35.
How sustainable is the dividend of BCE INC (BCE.CA) stock?
The dividend rating of BCE INC (BCE.CA) is 8 / 10 and the dividend payout ratio is 43.52%.