BCE (BCE) AI Stock Analysis

• Market Cap: $29.85B
• Dividend Yield: 8.8%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 4.8
• Beta (1Y): -0.01
• Revenue Growth: 0.11%
• EPS Growth: 7109.23%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.79
• Shares Outstanding: 932,525,800
• 10 Day Avg. Volume: 3,357,151
• 30 Day Avg. Volume: 3,997,425
• PEG Ratio: -0.96
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 11.87
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 5.06
• 1Y Price Target: $36.24
• Price Target Upside: 12.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): $24.63B

• Rating: 72 Outperform
• Price Target: C$36.00 ▲(11.66% Upside)

BCE's overall stock score is driven by strong valuation metrics and positive earnings call highlights, particularly in AI and fiber expansion. Financial performance is solid, though high leverage and net margin challenges persist. Technical analysis suggests a neutral market sentiment.

Positive Factors

Fiber Network Expansion

The expansion of the fiber network, including the addition of new subscribers, strengthens BCE's infrastructure, enhancing its market position and long-term revenue potential.

AI-Powered Solutions Growth

Strong growth in AI-powered solutions indicates BCE's successful innovation and adaptation to technological trends, securing future revenue streams.

Partnership with AST SpaceMobile

The partnership with AST SpaceMobile will enhance BCE's network reach and reliability, potentially opening new markets and improving service offerings.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting BCE's flexibility to invest in growth opportunities and manage economic downturns.

Decline in Bell Media Revenue

The decline in Bell Media revenue reflects challenges in the media segment, which could impact overall profitability and growth if not addressed.

Wireless Service Revenue Decline

A decline in wireless service revenue suggests competitive pressures or market saturation, potentially affecting long-term growth in this key segment.

BCE Business Overview & Revenue Model

Company Description

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communication products and services, as well as consumer electronics products. The Bell Wireline segment offers data, including internet access and Internet protocol television (IPTV), local telephone, and long distance services, as well as other communication services and products; and satellite TV service and connectivity servuces. This segment also buys and sells local telephone, long distance, data, and other services from or to resellers and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

How the Company Makes Money

BCE generates revenue primarily through its telecommunications services, which include wireless and wireline communications. The wireless segment contributes significantly to its earnings through subscription fees, data plans, and device sales. The wireline segment generates revenue from broadband internet, television services, and traditional landline services. Additionally, Bell Media, the company’s media division, earns money from advertising sales, subscription fees for streaming services, and content licensing agreements. Key partnerships with content creators and distributors enhance BCE's media offerings, while its extensive infrastructure and customer base provide a strong foundation for continuous revenue growth.

BCE Financial Statement Overview

Summary

BCE shows strong revenue growth and operational efficiency, with a 32% revenue growth rate and healthy cash flows. However, challenges include a low net profit margin and high leverage, indicating potential financial risks.

Income Statement

BCE's income statement shows a strong gross profit margin and a healthy EBIT margin, indicating efficient cost management and operational profitability. The TTM revenue growth rate of 32% is impressive, reflecting robust top-line expansion. However, the net profit margin is relatively low, suggesting potential challenges in translating revenue growth into net income.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. While the return on equity is modest, the equity ratio is stable, reflecting a balanced asset structure. The company should focus on managing its debt levels to enhance financial stability.

Cash Flow

BCE's cash flow statement shows a positive free cash flow growth rate and a solid operating cash flow to net income ratio, indicating strong cash generation capabilities. However, the free cash flow to net income ratio suggests room for improvement in converting earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.49B	24.41B	24.67B	24.17B	23.45B	22.88B
Gross Profit	12.47B	10.94B	10.83B	10.53B	10.09B	9.80B
EBITDA	14.72B	8.66B	8.70B	8.62B	8.33B	8.10B
Net Income	6.33B	344.00M	2.26B	2.87B	2.84B	2.63B
Balance Sheet
Total Assets	78.58B	73.48B	71.94B	69.33B	66.76B	60.66B
Cash, Cash Equivalents and Short-Term Investments	465.00M	1.97B	1.77B	149.00M	289.00M	224.00M
Total Debt	40.98B	38.31B	36.18B	31.92B	29.67B	25.97B
Total Liabilities	55.83B	56.13B	51.38B	46.81B	43.82B	39.34B
Stockholders Equity	22.46B	17.07B	20.23B	22.18B	22.64B	20.99B
Cash Flow
Free Cash Flow	3.96B	2.56B	3.18B	3.23B	1.09B	3.47B
Operating Cash Flow	7.31B	6.99B	7.95B	8.37B	8.01B	7.75B
Investing Cash Flow	-2.90B	-4.44B	-5.78B	-5.52B	-7.00B	-3.54B
Financing Cash Flow	-5.80B	-1.75B	-1.54B	-2.99B	-1.02B	-4.13B

BCE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BCE, the sentiment is Negative. The current price of 32.24 is below the 20-day moving average (MA) of 32.43, below the 50-day MA of 32.60, and above the 200-day MA of 31.69, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BCE.

BCE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	$26.75B	3.96	47.62%	4.01%	2.75%	342.54%
QBR.A	78 Outperform	C$10.29B	13.19	35.34%	2.68%	-0.29%	15.30%
QBR.B	75 Outperform	$10.29B	13.55	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	$29.85B	4.82	31.28%	8.80%	0.11%	7109.23%
T	62 Neutral	$28.33B	23.59	7.30%	9.38%	2.42%	24.37%
RCI.A	62 Neutral	C$28.97B	4.28	47.85%	4.00%	2.75%	342.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

BCE Corporate Events

BCE Retains Series R Preferred Shares Amid Conversion Shortfall

BCE Inc. announced that none of its Series R Preferred Shares will be converted into Series Q Preferred Shares due to insufficient tendering by shareholders. As a result, the Series R Preferred Shares will remain listed on the Toronto Stock Exchange and will continue to pay a fixed quarterly cash dividend at an annual rate of 4.733% for the next five years. This decision maintains the status quo for existing shareholders and ensures the continuity of dividend payments.

BCE Inc. Welcomes Steve Weed to Board of Directors

BCE Inc. has appointed Steve Weed, former Executive Chairman of Ziply Fiber, to its Board of Directors. Weed’s extensive experience in the telecommunications and broadband industries, particularly his leadership in building a leading fibre Internet provider, is expected to drive growth and benefit BCE’s shareholders.

BCE Inc. Reports Strong Q3 2025 Results with Revenue and Earnings Growth

BCE Inc. reported a 1.3% increase in consolidated revenue and a 1.5% rise in adjusted EBITDA for the third quarter of 2025. The company saw a significant boost in net earnings, reaching $4,555 million, and a 20.6% increase in free cash flow. The acquisition of Ziply Fiber contributed positively to the results, with $160 million in operating revenue. BCE’s strategic focus on core areas and disciplined capital allocation is expected to sustain growth and deliver returns for investors.

BCE Announces Leadership Transition with Louis Vachon Nominated as Next Chair

BCE has announced that Gordon Nixon will step down as Chair of the Board in May 2026 after a 12-year tenure, with Louis Vachon nominated as his successor. This leadership transition is part of BCE’s board renewal and succession plan, reflecting the company’s commitment to strategic growth and strong governance. Vachon’s nomination is expected to bring valuable leadership and governance expertise to BCE, enhancing its position in the communications industry.

BCE Unveils Strategic Plan for Sustainable Growth and Shareholder Value

BCE has unveiled a strategic plan aimed at achieving sustainable growth and enhancing shareholder value over the next three years. The plan includes a focus on operational efficiencies, with an expected $1.5 billion in cost savings by 2028, and a decrease in capital intensity to support improved cash flow. Additionally, BCE has formed a strategic partnership for fibre expansion, potentially reaching up to 16 million locations in North America. The company also aims for a net debt leverage ratio of 3.5x by 2027, with a path to 3.0x by 2030, and plans to distribute approximately $5 billion in dividends over the next three years.