BCE INC (BCE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BCE • CA05534B7604
25.73 USD
-0.13 (-0.5%)
Last: Feb 2, 2026, 01:46 PM
We assign a fundamental rating of 4 out of 10 to BCE. BCE was compared to 36 industry peers in the Diversified Telecommunication Services industry. BCE has an excellent profitability rating, but there are concerns on its financial health. BCE has a decent growth rate and is not valued too expensively. Finally 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
- The Return On Assets of BCE (7.85%) is better than 91.67% of its industry peers.
- BCE has a better Return On Equity (27.48%) than 91.67% of its industry peers.
- With a decent Return On Invested Capital value of 6.52%, BCE is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- BCE had an Average Return On Invested Capital over the past 3 years of 7.08%. This is in line with the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 6.52% |
ROA(3y)2.34%
ROA(5y)3.04%
ROE(3y)7.82%
ROE(5y)9.47%
ROIC(3y)7.08%
ROIC(5y)7.18%
1.3 Margins
- BCE has a better Profit Margin (25.21%) than 94.44% of its industry peers.
- In the last couple of years the Profit Margin of BCE has declined.
- With an excellent Operating Margin value of 22.38%, BCE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 67.92%, BCE belongs to the top of the industry, outperforming 83.33% 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.
- The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
- 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 0.74, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- BCE has a Altman-Z score of 0.74. This is in the lower half of the industry: BCE underperforms 63.89% 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 fine compared to the rest of the industry. BCE outperforms 63.89% 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 Debt to Equity ratio of 1.57. This is in the lower half of the industry: BCE underperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.74 |
ROIC/WACC1.22
WACC5.33%
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.
- BCE's Current ratio of 0.58 is on the low side compared to the rest of the industry. BCE is outperformed by 91.67% 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.
- The Quick ratio of BCE (0.55) is worse than 88.89% 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 -3.65%.
- 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.
- 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 0.73% 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 1.65% yearly.
EPS Next Y-9.1%
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
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.
- 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
- With a Price/Earnings ratio of 12.02, BCE is valued correctly.
- Based on the Price/Earnings ratio, BCE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (28.32), we can say BCE is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.85 indicates a correct valuation of BCE.
- 77.78% of the companies in the same industry are more expensive than BCE, based on the Price/Forward Earnings ratio.
- BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
- BCE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCE is cheaper than 66.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 69.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
- The decent profitability rating of BCE may justify a higher PE ratio.
- A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.62%
EPS Next 3Y-3.12%
5. Dividend
5.1 Amount
- BCE has a Yearly Dividend Yield of 5.09%, which is a nice return.
- BCE's Dividend Yield is rather good when compared to the industry average which is at 2.25. BCE pays more dividend than 86.11% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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-5.62%
EPS Next 3Y-3.12%
BCE INC / BCE FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 4 / 10 to BCE.
What is the valuation status for BCE stock?
ChartMill assigns a valuation rating of 5 / 10 to BCE INC (BCE). This can be considered as Fairly Valued.
How profitable is BCE INC (BCE) stock?
BCE INC (BCE) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for BCE stock?
The Earnings per Share (EPS) of BCE INC (BCE) is expected to decline by -9.1% in the next year.
Is the dividend of BCE INC sustainable?
The dividend rating of BCE INC (BCE) is 8 / 10 and the dividend payout ratio is 43.52%.