BCE INC (BCE.CA) Stock Fundamental Analysis
TSX:BCE - Toronto Stock Exchange - CA05534B7604 - Common Stock - Currency: CAD
Overall BCE gets a fundamental rating of 3 out of 10. We evaluated BCE against 30 industry peers in the Diversified Telecommunication Services industry. BCE may be in some trouble as it scores bad on both profitability and health. BCE has a expensive valuation and it also scores bad on growth. 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.
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 Return On Assets of 0.54%. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
BCE's Return On Equity of 2.26% 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 Invested Capital of 5.04%. This is amonst the worse of the industry: BCE underperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BCE is in line with the industry average of 5.41%.
The 3 year average ROIC (4.90%) for BCE is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| 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
Looking at the Profit Margin, with a value of 1.61%, BCE is doing worse than 83.33% of the companies in the same industry.
BCE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 22.74%, BCE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
BCE's Operating Margin has been stable in the last couple of years.
BCE's Gross Margin of 68.27% is on the low side compared to the rest of the industry. BCE is outperformed by 76.67% of its industry peers.
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 | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% |
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.
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 0.68, we must say that BCE is in the distress zone and has some risk of bankruptcy.
BCE has a Altman-Z score of 0.68. This is amongst the best in the industry. BCE outperforms 86.67% of its industry peers.
BCE has a debt to FCF ratio of 11.06. This is a negative value and a sign of low solvency as BCE would need 11.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.06, BCE is doing worse than 73.33% of the companies in the same industry.
BCE has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
BCE has a Debt to Equity ratio of 1.95. This is in the lower half of the industry: BCE underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.04
WACC4.86%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BCE may have some problems paying its short term obligations.
BCE has a worse Current ratio (0.64) than 80.00% of its industry peers.
A Quick Ratio of 0.61 indicates that BCE may have some problems paying its short term obligations.
BCE has a Quick ratio of 0.61. This is amonst the worse of the industry: BCE underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for BCE have decreased by -2.27% in the last year.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has decreased by -1.23% in the past year.
BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
3.2 Future
BCE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.91% yearly.
BCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.89%
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 10.82.
Based on the Price/Earnings ratio, BCE is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
BCE is valuated cheaply when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
BCE is valuated correctly with a Price/Forward Earnings ratio of 12.05.
BCE's Price/Forward Earnings ratio is rather expensive when compared to the industry. BCE is more expensive than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BCE to the average of the S&P500 Index (35.58), we can say BCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 12.05 |
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 73.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BCE indicates a slightly more expensive valuation: BCE is more expensive than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as BCE's earnings are expected to decrease with -2.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.91%, BCE is a good candidate for dividend investing.
BCE's Dividend Yield is rather good when compared to the industry average which is at 6.53. BCE pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, BCE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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
898.21% of the earnings are spent on dividend by BCE. This is not a sustainable payout ratio.
The dividend of BCE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP898.21%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
TSX:BCE (7/11/2025, 7:00:00 PM)
32.57
-0.3 (-0.91%)
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 Cap30.02B
Analysts53.64
Price Target34.6 (6.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend4.17
Dividend Growth(5Y)4.82%
DP898.21%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)9.09%
Max EPS beat(2)10.64%
EPS beat(4)2
Avg EPS beat(4)3.75%
Min EPS beat(4)-3.58%
Max EPS beat(4)10.64%
EPS beat(8)4
Avg EPS beat(8)2.18%
EPS beat(12)7
Avg EPS beat(12)2.52%
EPS beat(16)10
Avg EPS beat(16)2.92%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1%
Revenue beat(16)2
Avg Revenue beat(16)-1.16%
PT rev (1m)0%
PT rev (3m)-3.82%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 12.05 | ||
| P/S | 1.23 | ||
| P/FCF | 8.47 | ||
| P/OCF | 3.95 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.44 |
EPS(TTM)3.01
EY9.24%
EPS(NY)2.7
Fwd EY8.3%
FCF(TTM)3.84
FCFY11.8%
OCF(TTM)8.24
OCFY25.3%
SpS26.39
BVpS18.8
TBVpS-10.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.26% | ||
| ROCE | 9.21% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 9.46% | ||
| OM | 22.74% | ||
| PM (TTM) | 1.61% | ||
| GM | 68.27% | ||
| FCFM | 14.57% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 11.06 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 80.2% | ||
| Cap/Sales | 16.65% | ||
| Interest Coverage | 2.95 | ||
| Cash Conversion | 71.77% | ||
| Profit Quality | 906.39% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.68 |
F-Score6
WACC4.86%
ROIC/WACC1.04
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)-2.27%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%-4.17%
EPS Next Y-8.98%
EPS Next 2Y-5.7%
EPS Next 3Y-2.78%
EPS Next 5Y7.91%
Revenue 1Y (TTM)-1.23%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%-1.35%
Revenue Next Year-0.1%
Revenue Next 2Y1.06%
Revenue Next 3Y0.85%
Revenue Next 5Y1.89%
EBIT growth 1Y1.21%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year91.5%
EBIT Next 3Y25.46%
EBIT Next 5Y15.47%
FCF growth 1Y39.2%
FCF growth 3Y-4.23%
FCF growth 5Y-6.84%
OCF growth 1Y-2.7%
OCF growth 3Y-3.43%
OCF growth 5Y-1.95%