BCE INC (BCE.CA) Stock Fundamental Analysis
TSX:BCE - CA05534B7604 - Common Stock
35.24 CAD
-0.48 (-1.34%)
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 does not seem to be growing, but still is valued expensively. 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.
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's Return On Assets of 0.61% is on the low side compared to the rest of the industry. BCE is outperformed by 83.33% of its industry peers.
BCE has a Return On Equity of 2.40%. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
The Return On Invested Capital of BCE (5.04%) is worse than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCE is in line with the industry average of 5.44%.
The last Return On Invested Capital (5.04%) for BCE is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROIC | 5.04% |
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
With a Profit Margin value of 1.77%, BCE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
BCE's Profit Margin has declined in the last couple of years.
The Operating Margin of BCE (22.50%) is worse than 83.33% of its industry peers.
BCE's Operating Margin has been stable in the last couple of years.
BCE has a Gross Margin of 67.94%. This is in the lower half of the industry: BCE underperforms 76.67% of its industry peers.
BCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BCE has about the same amount of shares outstanding.
BCE has more shares outstanding than it did 5 years ago.
BCE has a worse debt/assets ratio than last year.
2.2 Solvency
BCE has an Altman-Z score of 0.73. 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 0.73 is amongst the best of the industry. BCE outperforms 86.67% of its industry peers.
BCE has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as BCE would need 9.25 years to pay back of all of its debts.
BCE has a worse Debt to FCF ratio (9.25) than 80.00% of its industry peers.
BCE has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.80, BCE is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.99
WACC5.1%
2.3 Liquidity
A Current Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
The Current ratio of BCE (0.61) is worse than 83.33% of its industry peers.
BCE has a Quick Ratio of 0.61. 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 (0.57) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
BCE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.84%.
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 decrease in Revenue. The Revenue has decreased by -0.66% in the last year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
3.2 Future
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.28% yearly.
The Revenue is expected to grow by 2.16% on average over the next years.
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.28%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.16%
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
A Price/Earnings ratio of 12.32 indicates a correct valuation of BCE.
BCE's Price/Earnings ratio is rather expensive when compared to the industry. BCE is more expensive than 80.00% of the companies in the same industry.
BCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
BCE is valuated correctly with a Price/Forward Earnings ratio of 12.81.
Based on the Price/Forward Earnings ratio, BCE is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
BCE's Enterprise Value to EBITDA 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a rather expensive valuation: BCE more expensive than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
BCE's earnings are expected to decrease with -3.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
5. Dividend
5.1 Amount
BCE has a Yearly Dividend Yield of 7.56%, which is a nice return.
Compared to an average industry Dividend Yield of 7.11, BCE pays a better dividend. On top of this BCE pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
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 739.72% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BCE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP739.72%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
TSX:BCE (8/22/2025, 7:00:00 PM)
35.24
-0.48 (-1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap32.86B
Analysts53.91
Price Target35.5 (0.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP739.72%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-12.22%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)0.98%
Min EPS beat(4)-12.22%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)1.28%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)3
Avg Revenue beat(12)-0.8%
Revenue beat(16)3
Avg Revenue beat(16)-0.98%
PT rev (1m)2.46%
PT rev (3m)0.53%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)2.84%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)1.78%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 12.81 | ||
| P/S | 1.35 | ||
| P/FCF | 8.09 | ||
| P/OCF | 4.39 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)2.86
EY8.12%
EPS(NY)2.75
Fwd EY7.81%
FCF(TTM)4.36
FCFY12.36%
OCF(TTM)8.03
OCFY22.77%
SpS26.17
BVpS19.37
TBVpS-9.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.4% | ||
| ROCE | 9.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 9.35% | ||
| OM | 22.5% | ||
| PM (TTM) | 1.77% | ||
| GM | 67.94% | ||
| FCFM | 16.64% |
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%
ROICexcg growth 3Y1.14%
ROICexcg 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-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 67.52% | ||
| Cap/Sales | 14.02% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 938.11% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.73 |
F-Score5
WACC5.1%
ROIC/WACC0.99
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)-6.84%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-19.23%
EPS Next Y-10.34%
EPS Next 2Y-4.86%
EPS Next 3Y-3.11%
EPS Next 5Y1.28%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.67%
Revenue Next 2Y2.26%
Revenue Next 3Y1.79%
Revenue Next 5Y2.16%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.75%
FCF growth 1Y117.69%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y3.74%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%