BCE INC (BCE.CA) Stock Fundamental Analysis
Canada - TSX:BCE - CA05534B7604 - Common Stock
32.6 CAD
+0.17 (+0.52%)
Taking everything into account, BCE scores 3 out of 10 in our fundamental rating. BCE was compared to 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of BCE have multiple concerns. BCE is valued expensive and it does not seem to be growing. 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.
In the past 5 years BCE has always been profitable.
Each year in the past 5 years BCE had a positive operating cash flow.
1.2 Ratios
BCE has a Return On Assets of 0.61%. This is amonst the worse of the industry: BCE underperforms 80.65% of its industry peers.
BCE has a worse Return On Equity (2.40%) than 80.65% of its industry peers.
BCE's Return On Invested Capital of 5.04% is on the low side compared to the rest of the industry. BCE is outperformed by 77.42% of its industry peers.
BCE had an Average Return On Invested Capital over the past 3 years of 4.90%. This 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
The Profit Margin of BCE (1.77%) is worse than 80.65% 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 22.50%, BCE is doing worse than 80.65% 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 67.94% is on the low side compared to the rest of the industry. BCE is outperformed by 77.42% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BCE is creating some value.
BCE has about the same amout of shares outstanding than it did 1 year ago.
BCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that BCE is in the distress zone and has some risk of bankruptcy.
BCE has a better Altman-Z score (0.70) than 87.10% of its industry peers.
The Debt to FCF ratio of BCE is 9.25, which is on the high side as it means it would take BCE, 9.25 years of fcf income to pay off all of its debts.
BCE has a worse Debt to FCF ratio (9.25) than 77.42% of its industry peers.
A Debt/Equity ratio of 1.80 is on the high side and indicates that BCE has dependencies on debt financing.
BCE has a worse Debt to Equity ratio (1.80) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.01
WACC4.97%
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 80.65% 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.
With a Quick ratio value of 0.57, BCE is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
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
Based on estimates for the next years, BCE will show a small growth in Earnings Per Share. The EPS will grow by 1.52% on average per year.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.40% yearly.
EPS Next Y-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
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
The Price/Earnings ratio is 11.40, which indicates a very decent valuation of BCE.
Based on the Price/Earnings ratio, BCE is valued a bit more expensive than 70.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. BCE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent valuation of BCE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 77.42% of the companies listed in the same industry.
BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 70.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BCE is valued a bit more expensive than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE's earnings are expected to decrease with -3.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.48%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 4.61. BCE pays more dividend than 90.32% of the companies in the same industry.
BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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-4.95%
EPS Next 3Y-3.44%
TSX:BCE (10/3/2025, 7:00:00 PM)
32.6
+0.17 (+0.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners47.57%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap30.40B
Analysts55
Price Target35.9 (10.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.48% |
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)1.15%
PT rev (3m)3.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.25 | ||
| P/FCF | 7.48 | ||
| P/OCF | 4.06 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.39 |
EPS(TTM)2.86
EY8.77%
EPS(NY)2.75
Fwd EY8.42%
FCF(TTM)4.36
FCFY13.36%
OCF(TTM)8.03
OCFY24.62%
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 | 0.7 |
F-Score5
WACC4.97%
ROIC/WACC1.01
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-10.6%
EPS Next 2Y-4.95%
EPS Next 3Y-3.44%
EPS Next 5Y1.52%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.33%
Revenue Next Year1.6%
Revenue Next 2Y2.23%
Revenue Next 3Y1.74%
Revenue Next 5Y2.4%
EBIT growth 1Y0.22%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.58%
EBIT Next 3Y26.41%
EBIT Next 5Y15.82%
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%