BCE INC (BCE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BCE • CA05534B7604
25.49 USD
+0.22 (+0.87%)
At close: Jan 29, 2026
25.39 USD
-0.1 (-0.39%)
Pre-Market: 1/30/2026, 7:00:00 AM
Taking everything into account, BCE scores 5 out of 10 in our fundamental rating. BCE was compared to 36 industry peers in the Diversified Telecommunication Services industry. BCE scores excellent on profitability, but there are concerns on its financial health. BCE has a decent growth rate and is not valued too expensively. 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.
- Each year in the past 5 years BCE has been profitable.
- Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
- BCE's Return On Assets of 7.85% is amongst the best of the industry. BCE outperforms 88.89% of its industry peers.
- With an excellent Return On Equity value of 27.48%, BCE belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.52%, BCE is in the better half of 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 6.71%.
| 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 94.44% of the companies in the same industry.
- BCE's Profit Margin has declined in the last couple of years.
- 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.
- With an excellent Gross Margin value of 67.92%, BCE belongs to the best of the industry, outperforming 83.33% 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.
- Compared to 1 year ago, BCE has about the same amount of shares outstanding.
- The number of shares outstanding for BCE has been increased compared to 5 years ago.
- BCE has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.73, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- BCE has a worse Altman-Z score (0.73) than 66.67% 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.
- 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.73 |
ROIC/WACC1.23
WACC5.31%
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.
- Looking at the Current ratio, with a value of 0.58, BCE is doing worse than 91.67% of the companies in the same industry.
- 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 worse Quick ratio (0.55) 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%.
- The Earnings Per Share has been decreasing by -2.78% on average over the past years.
- Looking at the last year, BCE shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
- Measured over the past years, BCE shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
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
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.73% yearly.
- 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
- 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 11.91, the valuation of BCE can be described as very reasonable.
- Based on the Price/Earnings ratio, BCE is valued cheaper than 80.56% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. BCE is valued rather cheaply when compared to this.
- BCE is valuated correctly with a Price/Forward Earnings ratio of 12.73.
- 77.78% of the companies in the same industry are more expensive than BCE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. BCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 12.73 |
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 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
- BCE has a very decent profitability rating, which 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 6.15%, which is a nice return.
- BCE's Dividend Yield is rather good when compared to the industry average which is at 2.29. BCE pays more dividend than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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-5.62%
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 5 / 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 -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%.