BCE INC (BCE) Stock Fundamental Analysis
NYSE:BCE • CA05534B7604
25.8 USD
+0.23 (+0.9%)
At close: Feb 20, 2026
25.8 USD
0 (0%)
After Hours: 2/20/2026, 8:18:18 PM
Taking everything into account, BCE scores 4 out of 10 in our fundamental rating. BCE was compared to 37 industry peers in the Diversified Telecommunication Services industry. BCE has an excellent profitability rating, but there are concerns on its financial health. BCE is valued correctly, but it does not seem to be growing. Finally BCE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year BCE was profitable.
- In the past year BCE had a positive cash flow from operations.
- BCE had positive earnings in 4 of the past 5 years.
- BCE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BCE has a Return On Assets of 7.85%. This is amongst the best in the industry. BCE outperforms 89.19% of its industry peers.
- Looking at the Return On Equity, with a value of 27.48%, BCE belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.52%, BCE is doing good in the industry, outperforming 72.97% 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 6.69%.
| 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
- Looking at the Profit Margin, with a value of 25.21%, BCE belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
- 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 89.19% of the companies in the same industry.
- BCE's Operating Margin has been stable in the last couple of years.
- BCE's Gross Margin of 67.92% is amongst the best of the industry. BCE outperforms 83.78% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some 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
- 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 worse Altman-Z score (0.74) than 70.27% 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.
- Looking at the Debt to FCF ratio, with a value of 10.36, BCE is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
- 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 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.74 |
ROIC/WACC1.23
WACC5.32%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- The Current ratio of BCE (0.58) is worse than 91.89% 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.
- BCE has a Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 89.19% 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 -7.89%.
- Measured over the past years, BCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.57% on average per year.
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
- The Earnings Per Share is expected to grow by 5.22% on average over the next years.
- Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.49% on average per year.
EPS Next Y-3.29%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
EPS Next 5Y5.22%
Revenue Next Year3.04%
Revenue Next 2Y2.14%
Revenue Next 3Y2.36%
Revenue Next 5Y1.49%
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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.65, the valuation of BCE can be described as correct.
- 83.78% of the companies in the same industry are more expensive than BCE, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, BCE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.06, the valuation of BCE can be described as correct.
- Based on the Price/Forward Earnings ratio, BCE is valued a bit cheaper than 78.38% of the companies in the same industry.
- BCE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a somewhat cheap valuation: BCE is cheaper than 67.57% of the companies listed in the same industry.
- BCE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BCE is cheaper than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.34 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
- BCE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.41%, BCE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.23, BCE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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.
- 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-0.64%
EPS Next 3Y3.33%
25.8
+0.23 (+0.9%)
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 Owners47.26%
Inst Owner Change0.21%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap24.06B
Revenue(TTM)N/A
Net Income(TTM)6.17B
Analysts68.18
Price Target27.2 (5.43%)
Short Float %2.48%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend3.06
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)1.9%
PT rev (3m)6.19%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 13.06 | ||
| P/S | 1.35 | ||
| P/FCF | 8.34 | ||
| P/OCF | 4.51 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)2.04
EY7.91%
EPS(NY)1.98
Fwd EY7.66%
FCF(TTM)3.09
FCFY11.99%
OCF(TTM)5.72
OCFY22.15%
SpS19.16
BVpS17.57
TBVpS-6.42
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROCE | 8.25% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.28% | ||
| 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)7.08%
ROIC(5y)7.18%
ROICexc(3y)7.23%
ROICexc(5y)7.29%
ROICexgc(3y)13.21%
ROICexgc(5y)13.21%
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
WACC5.32%
ROIC/WACC1.23
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-3.29%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
EPS Next 5Y5.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.28%
Revenue Next Year3.04%
Revenue Next 2Y2.14%
Revenue Next 3Y2.36%
Revenue Next 5Y1.49%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.99%
EBIT Next 3Y26.65%
EBIT Next 5Y15.84%
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 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 6 / 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 -3.29% in the next year.
Is the dividend of BCE INC sustainable?
The dividend rating of BCE INC (BCE) is 7 / 10 and the dividend payout ratio is 43.52%.