BCE INC (BCE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BCE - CA05534B7604 - Common Stock
23.72 USD
-0.12 (-0.5%)
23.6 USD
-0.12 (-0.51%)
Overall BCE gets a fundamental rating of 5 out of 10. We evaluated BCE against 37 industry peers in the Diversified Telecommunication Services industry. BCE has an excellent profitability rating, but there are concerns on its financial health. BCE has a correct valuation and a medium growth rate. 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.
- In the past 5 years BCE has always been profitable.
- In the past 5 years BCE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of BCE (7.85%) is better than 91.89% of its industry peers.
- With an excellent Return On Equity value of 27.48%, BCE belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
- BCE has a Return On Invested Capital of 6.52%. This is in the better half of the industry: BCE outperforms 72.97% 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 6.52%.
| 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 94.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of BCE has declined.
- BCE has a better Operating Margin (22.38%) than 86.49% of its industry peers.
- BCE's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BCE (67.92%) is better than 86.49% 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 | 22.38% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BCE is still creating some value.
- The number of shares outstanding for BCE remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, BCE has more shares outstanding
- The debt/assets ratio for BCE is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.72, we must say that BCE is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.72, BCE is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
- 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.
- Looking at the Debt to FCF ratio, with a value of 10.36, BCE is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
- BCE has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- BCE has a worse Debt to Equity ratio (1.57) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 10.36 | ||
| Altman-Z | 0.72 |
ROIC/WACC1.26
WACC5.16%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that BCE may have some problems paying its short term obligations.
- BCE has a Current ratio of 0.58. This is amonst the worse of the industry: BCE underperforms 89.19% of its industry peers.
- 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 Quick ratio of 0.55. This is amonst the worse of the industry: BCE underperforms 86.49% 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 -3.65% in the last year.
- 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.
- BCE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
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.
- Based on estimates for the next years, BCE will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
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.
- 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 11.35 indicates a reasonable valuation of BCE.
- Based on the Price/Earnings ratio, BCE is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of BCE to the average of the S&P500 Index (27.30), we can say BCE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.10, the valuation of BCE can be described as correct.
- Based on the Price/Forward Earnings ratio, BCE is valued cheaper than 83.78% of the companies in the same industry.
- BCE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
- BCE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BCE is cheaper than 70.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BCE is valued a bit cheaper than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
- BCE has a very decent profitability rating, which may justify a higher PE ratio.
- BCE's earnings are expected to decrease with -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
- BCE has a Yearly Dividend Yield of 5.32%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.37, BCE pays a better dividend. On top of this BCE pays more dividend than 83.78% of the companies listed in the same industry.
- BCE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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
- 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 slower than its dividend. This means the dividend growth is not sustainable.
DP43.52%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
23.72
-0.12 (-0.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners47.26%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.12B
Revenue(TTM)24.49B
Net Income(TTM)6.17B
Analysts67.27
Price Target26.7 (12.56%)
Short Float %2.65%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend3
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)1.11%
PT rev (3m)3.69%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.25 | ||
| P/FCF | 7.76 | ||
| P/OCF | 4.2 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)2.09
EY8.81%
EPS(NY)1.96
Fwd EY8.26%
FCF(TTM)3.06
FCFY12.88%
OCF(TTM)5.64
OCFY23.8%
SpS18.92
BVpS17.35
TBVpS-6.34
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 27.48% | ||
| ROCE | 8.25% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.28% | ||
| 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)7.08%
ROIC(5y)7.18%
ROICexc(3y)7.23%
ROICexc(5y)7.29%
ROICexgc(3y)13.21%
ROICexgc(5y)13.21%
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 | 0.72 |
F-Score6
WACC5.16%
ROIC/WACC1.26
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)-3.65%
EPS 3Y-1.59%
EPS 5Y-2.78%
EPS Q2Q%5.33%
EPS Next Y-9.15%
EPS Next 2Y-5.41%
EPS Next 3Y-3.3%
EPS Next 5Y0.73%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.35%
Revenue growth 5Y0.51%
Sales Q2Q%1.31%
Revenue Next Year1.43%
Revenue Next 2Y2.23%
Revenue Next 3Y1.9%
Revenue Next 5Y1.65%
EBIT growth 1Y-0.47%
EBIT growth 3Y1.64%
EBIT growth 5Y-0.41%
EBIT Next Year94.99%
EBIT Next 3Y26.65%
EBIT Next 5Y16.09%
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 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 -9.15% 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%.