BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - TSX:BCE - CA05534B7604 - Common Stock
32.01 CAD
-0.4 (-1.23%)
We assign a fundamental rating of 3 out of 10 to BCE. BCE was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE is valied quite expensively at the moment, while it does show a decent growth rate. Finally 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 has a worse Return On Assets (7.85%) than 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: 83.33% of the companies in the same industry are doing better.
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
BCE has a worse Profit Margin (25.21%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of BCE has declined.
With a Operating Margin value of 22.38%, BCE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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 76.67% 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
BCE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BCE has about the same amout of shares outstanding than it did 1 year ago.
BCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE has a worse debt to assets ratio.
2.2 Solvency
BCE has an Altman-Z score of 0.71. 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 0.71 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.
With a Debt to FCF ratio value of 10.36, BCE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.57 is on the high side and indicates that BCE has dependencies on debt 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 | 0.71 |
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.
Looking at the Current ratio, with a value of 0.58, BCE is doing worse than 86.67% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
BCE has a worse Quick ratio (0.55) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.20%.
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)-3.2%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%7.15%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%3.72%
3.2 Future
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.66% yearly.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.66%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y1.83%
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.
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 11.00, 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
BCE is valuated reasonably with a Price/Forward Earnings ratio of 11.77.
BCE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BCE is more expensive than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. BCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 11.77 |
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.
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 | 7.55 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -3.28% in the coming years. This may justify a cheaper valuation.
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 5.40%, which is a nice return.
BCE's Dividend Yield is rather good when compared to the industry average which is at 5.36. BCE pays more dividend than 90.00% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
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.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
TSX:BCE (11/14/2025, 7:00:00 PM)
32.01
-0.4 (-1.23%)
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 Cap29.85B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target35.94 (12.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
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)-0.5%
Min EPS beat(2)-12.22%
Max EPS beat(2)11.22%
EPS beat(4)3
Avg EPS beat(4)4.68%
Min EPS beat(4)-12.22%
Max EPS beat(4)11.22%
EPS beat(8)5
Avg EPS beat(8)2.42%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)10
Avg EPS beat(16)2.6%
Revenue beat(2)2
Avg Revenue beat(2)1.11%
Min Revenue beat(2)0.93%
Max Revenue beat(2)1.28%
Revenue beat(4)3
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)1.28%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)4
Avg Revenue beat(12)-0.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.75%
PT rev (1m)0.09%
PT rev (3m)3.32%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-4.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)3.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 11.77 | ||
| P/S | 1.22 | ||
| P/FCF | 7.55 | ||
| P/OCF | 4.09 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)2.91
EY9.09%
EPS(NY)2.72
Fwd EY8.5%
FCF(TTM)4.24
FCFY13.25%
OCF(TTM)7.83
OCFY24.47%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number39.71
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 | 0.71 |
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)-3.2%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%7.15%
EPS Next Y-10.6%
EPS Next 2Y-5.41%
EPS Next 3Y-3.28%
EPS Next 5Y1.66%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%3.72%
Revenue Next Year1.57%
Revenue Next 2Y2.31%
Revenue Next 3Y1.92%
Revenue Next 5Y1.83%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y16.08%
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 and the Price/Book (PB) ratio is 1.33.
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%.