BCE INC (BCE.CA) Stock Fundamental Analysis
TSX:BCE • CA05534B7604
35.29 CAD
+0.28 (+0.8%)
Last: Feb 20, 2026, 07:00 PM
BCE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 28 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. 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.
- Of the past 5 years BCE 4 years were profitable.
- BCE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 7.85%, BCE is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 27.48%, BCE is doing worse than 75.00% of the companies in the same industry.
- With a Return On Invested Capital value of 4.52%, BCE is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROIC | 4.52% |
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
- BCE has a worse Profit Margin (25.21%) than 67.86% of its industry peers.
- BCE's Profit Margin has declined in the last couple of years.
- BCE has a Operating Margin of 22.38%. This is amonst the worse of the industry: BCE underperforms 82.14% of its industry peers.
- In the last couple of years the Operating Margin of BCE has remained more or less at the same level.
- With a Gross Margin value of 67.92%, BCE is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
- 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
- BCE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for BCE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- BCE has an Altman-Z score of 0.74. 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 0.74 is amongst the best of the industry. BCE outperforms 85.71% of its industry peers.
- The Debt to FCF ratio of BCE is 10.36, which is on the high side as it means it would take BCE, 10.36 years of fcf income to pay off all of its debts.
- BCE has a worse Debt to FCF ratio (10.36) than 82.14% 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.
- Looking at the Debt to Equity ratio, with a value of 1.57, BCE is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.89
WACC5.07%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying 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 85.71% of its industry peers.
- A Quick Ratio of 0.55 indicates that BCE may have some problems paying its short term obligations.
- BCE has a Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 85.71% 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 -7.89% in the last year.
- The Earnings Per Share has been decreasing by -1.57% on average over the past years.
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
- BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.22% yearly.
- BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
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
- The EPS 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 12.60, BCE is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 75.00% of the companies listed in the same industry.
- BCE is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.03 indicates a correct valuation of BCE.
- Based on the Price/Forward Earnings ratio, BCE is valued more expensive than 82.14% 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 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 13.03 |
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 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
- BCE has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.96, BCE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 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 paid a dividend for at least 10 years, which is 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP43.52%
EPS Next 2Y-0.64%
EPS Next 3Y3.33%
TSX:BCE (2/20/2026, 7:00:00 PM)
35.29
+0.28 (+0.8%)
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 ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap32.91B
Revenue(TTM)N/A
Net Income(TTM)6.17B
Analysts68.18
Price Target37.18 (5.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend4.17
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)1.02%
PT rev (3m)3.45%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 13.03 | ||
| P/S | 1.34 | ||
| P/FCF | 8.32 | ||
| P/OCF | 4.51 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)2.8
EY7.93%
EPS(NY)2.71
Fwd EY7.67%
FCF(TTM)4.24
FCFY12.02%
OCF(TTM)7.83
OCFY22.19%
SpS26.26
BVpS24.08
TBVpS-8.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number38.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROCE | 8.25% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 8.5% | ||
| 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)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%
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
WACC5.07%
ROIC/WACC0.89
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.CA FAQ
Can you provide the ChartMill fundamental rating for BCE INC?
ChartMill assigns a fundamental rating of 2 / 10 to BCE.CA.
What is the valuation status for BCE stock?
ChartMill assigns a valuation rating of 2 / 10 to BCE INC (BCE.CA). This can be considered as Overvalued.
How profitable is BCE INC (BCE.CA) stock?
BCE INC (BCE.CA) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for BCE stock?
The Earnings per Share (EPS) of BCE INC (BCE.CA) 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.CA) is 7 / 10 and the dividend payout ratio is 43.52%.