BCE INC (BCE.CA) Fundamental Analysis & Valuation
TSX:BCE • CA05534B7604
Current stock price
35.09 CAD
+0.06 (+0.17%)
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
- 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 4 of the past 5 years.
- Of the past 5 years BCE 4 years had a positive operating cash flow.
1.2 Ratios
- BCE has a Return On Assets of 7.85%. This is in the lower half of the industry: BCE underperforms 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 27.48%, BCE is doing worse than 73.33% of the companies in the same industry.
- With a Return On Invested Capital value of 4.52%, BCE is not doing good in the industry: 80.00% 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 5.00%.
| 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
- With a Profit Margin value of 25.21%, BCE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- BCE's Profit Margin has declined in the last couple of years.
- BCE's Operating Margin of 22.38% is on the low side compared to the rest of the industry. BCE is outperformed by 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 worse Gross Margin (67.92%) than 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. BCE.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BCE is destroying value.
- BCE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- BCE has an Altman-Z score of 0.74. This is a bad value and indicates that BCE is not financially healthy and even has some risk of bankruptcy.
- BCE's Altman-Z score of 0.74 is amongst the best of the industry. BCE outperforms 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.
- BCE has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- BCE has a Debt to Equity ratio of 1.57. This is in the lower half of the industry: BCE underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.89
WACC5.06%
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.
- The Current ratio of BCE (0.58) is worse than 83.33% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
- The Quick ratio of BCE (0.55) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. BCE.CA Growth Analysis
3.1 Past
- BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.89%.
- The Earnings Per Share has been decreasing by -1.57% on average over the past years.
EPS 1Y (TTM)-7.89%
EPS 3Y-5.8%
EPS 5Y-1.57%
EPS Q2Q%-12.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.28%
3.2 Future
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
- BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
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
- 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.
4. BCE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.53, BCE is valued correctly.
- Based on the Price/Earnings ratio, BCE is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, BCE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.52, the valuation of BCE can be described as correct.
- Based on the Price/Forward Earnings ratio, BCE is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 23.83. BCE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are cheaper than BCE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 6.91 |
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 5.97%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.93, BCE pays a better dividend. On top of this BCE pays more dividend than 96.67% 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 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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 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
- 43.52% of the earnings are spent on dividend by BCE. This is a bit on the high side, but may be sustainable.
- The dividend of BCE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP43.52%
EPS Next 2Y-1.8%
EPS Next 3Y0.01%
BCE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:BCE (3/13/2026, 7:00:00 PM)
35.09
+0.06 (+0.17%)
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 Cap32.72B
Revenue(TTM)N/A
Net Income(TTM)6.17B
Analysts67.62
Price Target37.12 (5.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP43.52%
Div Incr Years16
Div Non Decr Years16
Ex-Date03-16 2026-03-16 (0.4375)
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)-0.16%
PT rev (3m)0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.34 | ||
| P/FCF | 8.27 | ||
| P/OCF | 4.48 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.8
EY7.98%
EPS(NY)2.6
Fwd EY7.4%
FCF(TTM)4.24
FCFY12.09%
OCF(TTM)7.83
OCFY22.32%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number38.95
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 | 0.74 |
F-Score6
WACC5.06%
ROIC/WACC0.89
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.28%
Revenue Next Year2.27%
Revenue Next 2Y1.8%
Revenue Next 3Y1.53%
Revenue Next 5Y1.68%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.65%
EBIT Next 3Y26.26%
EBIT Next 5Y16.03%
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 Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 2 / 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 2 / 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 43.52%.