BCE INC (BCE) Stock Fundamental Analysis
USA - NYSE:BCE - CA05534B7604 - Common Stock
22.935 USD
+0.14 (+0.64%)
Overall BCE gets a fundamental rating of 5 out of 10. We evaluated BCE against 36 industry peers in the Diversified Telecommunication Services industry. While BCE belongs to the best of the industry regarding profitability, there are concerns on its financial health. BCE is not valued too expensively and it also shows 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.
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
BCE has a better Return On Assets (7.85%) than 94.44% of its industry peers.
BCE has a better Return On Equity (27.48%) than 97.22% of its industry peers.
With a decent Return On Invested Capital value of 6.52%, BCE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 6.44%.
| 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's Profit Margin of 25.21% is amongst the best of the industry. BCE outperforms 97.22% 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 belongs to the top 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.
BCE's Gross Margin of 67.92% is amongst the best of the industry. BCE outperforms 86.11% 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. 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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BCE has more shares outstanding
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 has a Altman-Z score of 0.71. This is comparable to the rest of the industry: BCE outperforms 41.67% 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 has a better Debt to FCF ratio (10.36) than 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.
The Debt to Equity ratio of BCE (1.57) is worse than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.27
WACC5.13%
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 86.11% of its industry peers.
A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
BCE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. BCE is outperformed by 86.11% of its industry peers.
| 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 -3.20% 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.
BCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 1.66% on average per year.
The Revenue is expected to grow by 1.83% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BCE is valuated reasonably with a Price/Earnings ratio of 11.03.
Based on the Price/Earnings ratio, BCE is valued cheaper than 86.11% of the companies in the same industry.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.82 indicates a reasonable valuation of BCE.
Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 83.33% 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 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BCE is valued a bit cheaper than 69.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The decent profitability rating of BCE may justify a higher PE ratio.
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 a higher than the industry average which is at 5.85.
Compared to an average S&P500 Dividend Yield of 2.44, BCE pays a better dividend.
| 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 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
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%
NYSE:BCE (11/20/2025, 3:40:03 PM)
22.935
+0.14 (+0.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner Change1.27%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap21.39B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts64.55
Price Target25.62 (11.71%)
Short Float %2.52%
Short Ratio7.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Yearly Dividend2.97
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)-0.5%
PT rev (3m)2.79%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 11.82 | ||
| P/S | 1.22 | ||
| P/FCF | 7.58 | ||
| P/OCF | 4.1 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.63 |
EPS(TTM)2.08
EY9.07%
EPS(NY)1.94
Fwd EY8.46%
FCF(TTM)3.03
FCFY13.2%
OCF(TTM)5.59
OCFY24.37%
SpS18.74
BVpS17.19
TBVpS-6.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.36
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 | 0.71 |
F-Score6
WACC5.13%
ROIC/WACC1.27
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 FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 5 / 10 to BCE.
What is the valuation status of BCE INC (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.
What are the PE and PB ratios of BCE INC (BCE) stock?
The Price/Earnings (PE) ratio for BCE INC (BCE) is 11.03 and the Price/Book (PB) ratio is 1.33.
How sustainable is the dividend of BCE INC (BCE) stock?
The dividend rating of BCE INC (BCE) is 7 / 10 and the dividend payout ratio is 43.52%.