BCE (BCE) AI Stock Analysis

• Market Cap: $32.29B
• Dividend Yield: 9.7%
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): 76.8
• Beta (1Y): 0.30
• Revenue Growth: -0.66%
• EPS Growth: -78.79%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• Shares Outstanding: 921,824,600
• 10 Day Avg. Volume: 3,778,043
• 30 Day Avg. Volume: 3,374,548
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: $34.78
• Price Target Upside: -1.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: C$37.00 ▲(4.61% Upside)

BCE's overall stock score reflects strong financial performance and strategic initiatives, particularly in expanding its fiber network and digital offerings. However, high leverage and valuation concerns, along with mixed technical indicators, temper the positive outlook. The company's high dividend yield remains a key attraction for income-focused investors.

Positive Factors

Customer Acquisition

Mobile phone postpaid net additions performed better than expected, suggesting a positive trend in customer acquisition.

Financial Health

The company's Q2 results showed better-than-expected EBITDA and free cash flow, which is a positive indicator for financial health.

Media Growth

Media segment showed strong growth with EBITDA up by 7.8%, driven by increased sub revenues from streaming services.

Negative Factors

Broadband Challenges

The company's broadband subscriber trends were softer, indicating challenges in attracting new broadband customers.

Decline in Consolidated EBITDA

Consolidated EBITDA was down 0.9% year-over-year, with the Communications and Technology Solutions segment experiencing a 1.6% decline.

Wireline Revenue Decline

Wireline external service revenues were lower than expected, reflecting a decline in certain segments.

BCE Business Overview & Revenue Model

Company Description

BCE Inc. (Bell Canada Enterprises) is a leading communications and media company based in Canada. It operates through several segments, including Bell Wireless, Bell Wireline, and Bell Media. BCE provides a wide range of services, including wireless communications, high-speed internet, television broadcasting, and advertising solutions. With a strong emphasis on technology and innovation, BCE aims to deliver advanced telecommunications and entertainment services to both residential and business customers across Canada.

How the Company Makes Money

BCE generates revenue through multiple streams, primarily from its wireless communications services, which include mobile voice and data plans. The Bell Wireless segment contributes significantly to its earnings, driven by subscription fees and device sales. The Bell Wireline segment adds to revenue through high-speed internet, digital television, and traditional phone services. BCE's Bell Media division generates income from advertising sales across its television channels, radio stations, and digital platforms. Additionally, BCE engages in partnerships with content creators and distributors, enhancing its media offerings and expanding its customer base. Factors such as the growth in demand for data services, strategic acquisitions, and investments in network infrastructure also play a crucial role in boosting BCE's overall revenue.

BCE Financial Statement Overview

Summary

BCE demonstrates strong profitability with healthy EBIT and EBITDA margins, but faces stagnant revenue growth. The balance sheet is stable yet burdened by high leverage, which requires careful management. Cash flow generation is a notable strength, with significant improvements in free cash flow.

Income Statement

The company's income statement reveals a stable gross profit margin of 58.8% TTM, with a modest net profit margin of 2.3% TTM. Revenue growth is slightly negative at -0.33% TTM, indicating stagnation in top-line growth. The EBIT margin is healthy at 28.0% TTM, while the EBITDA margin stands at 34.5% TTM. Overall, the company showcases strong profitability metrics, albeit with a need for revenue growth improvement.

Balance Sheet

The balance sheet analysis highlights a high debt-to-equity ratio of 2.26 TTM, reflecting significant leverage, which poses a potential risk. Return on equity (ROE) is low at 3.3% TTM, indicating limited effectiveness in generating returns on shareholder investments. The equity ratio is 24.0% TTM, suggesting a moderate level of equity financing compared to total assets. Overall, the company's balance sheet reflects financial stability but with notable leverage concerns.

Cash Flow

Cash flow analysis shows a robust operating cash flow to net income ratio of 13.1 TTM, indicating strong cash generation relative to net income. The free cash flow growth rate is positive at 31.8% TTM, demonstrating healthy cash flow improvement. The free cash flow to net income ratio is 6.0 TTM, suggesting efficient cash conversion. Overall, the company's cash flow position is strong, with significant improvements in free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.41B	24.67B	24.17B	23.45B	22.88B
Gross Profit	16.70B	7.42B	16.53B	9.89B	9.61B
EBITDA	7.94B	10.27B	9.82B	9.72B	8.77B
Net Income	344.00M	2.26B	2.87B	2.84B	2.63B
Balance Sheet
Total Assets	73.48B	71.94B	69.33B	66.76B	60.66B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.77B	149.00M	289.00M	224.00M
Total Debt	38.31B	36.18B	31.92B	29.67B	25.97B
Total Liabilities	56.13B	51.38B	46.81B	43.82B	39.34B
Stockholders Equity	17.07B	20.23B	22.18B	22.64B	20.99B
Cash Flow
Free Cash Flow	2.56B	3.18B	3.23B	1.09B	3.47B
Operating Cash Flow	6.99B	7.95B	8.37B	8.01B	7.75B
Investing Cash Flow	-4.44B	-5.78B	-5.51B	-7.00B	-3.54B
Financing Cash Flow	-1.75B	-1.54B	-2.99B	-1.02B	-4.13B

BCE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BCE, the sentiment is Positive. The current price of 35.37 is above the 20-day moving average (MA) of 33.21, above the 50-day MA of 31.85, and above the 200-day MA of 32.31, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 75.63 is Negative, neither overbought nor oversold. The STOCH value of 97.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BCE.

BCE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.A	78 Outperform	C$9.17B	11.94	34.50%	3.34%	-1.02%	4.71%
QBR.B	77 Outperform	$9.17B	11.97	33.80%	3.34%	-1.02%	4.71%
RCI.B	75 Outperform	$26.45B	17.07	13.68%	4.10%	1.87%	71.51%
RCI.A	75 Outperform	C$26.59B	17.94	13.93%	3.93%	1.87%	71.51%
T	72 Outperform	$34.22B	34.94	6.08%	7.11%	2.56%	21.28%
BCE	69 Neutral	$32.29B	76.82	2.91%	9.70%	-0.66%	-78.79%
Sector *	60 Neutral	$44.04B	1.91	-11.93%	3.99%	2.50%	-38.33%

BCE Corporate Events

BCE Inc. Reports Strong Q2 2025 Results with Strategic Growth Initiatives

BCE Inc. reported a 1.3% increase in consolidated revenue for Q2 2025, alongside a 6.6% rise in net earnings, despite a slight decline in adjusted EBITDA due to higher operating costs. The company saw improvements in mobile phone subscriber activations and reduced postpaid churn, marking the first year-over-year improvement since 2022. Bell Media continued its growth trajectory with increased revenue and EBITDA, driven by digital platforms. BCE’s strategic acquisition of Ziply Fiber aims to bolster its North American fiber network, while investments in AI infrastructure position it as a leader in Canada’s AI ecosystem. The company’s strategic focus remains on enhancing shareholder value through continued innovation and expansion.

The most recent analyst rating on (TSE:BCE) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on BCE stock, see the TSE:BCE Stock Forecast page.

BCE Inc. Reports Q2 2025 Growth Amid Strategic Expansions

BCE Inc. reported a 1.3% increase in consolidated revenue for Q2 2025, with net earnings rising by 6.6%. Despite a decline in adjusted EBITDA due to higher operating costs, the company saw improvements in wireless and internet subscriber growth, and continued revenue growth in Bell Media. The acquisition of Ziply Fiber enhances BCE’s North American fiber strategy, while investments in AI and network expansion solidify its industry position. However, regulatory challenges may impact future infrastructure investments.

The most recent analyst rating on (TSE:BCE) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on BCE stock, see the TSE:BCE Stock Forecast page.

BCE Expands U.S. Presence with Ziply Fiber Acquisition

BCE Inc. has completed its acquisition of Ziply Fiber for C$5.0 billion, expanding its fibre Internet footprint into the U.S. by 1.4 million locations and reinforcing its position as the third-largest fibre Internet provider in North America. This acquisition, in partnership with the Public Sector Pension Investment Board, allows BCE to potentially reach up to 8 million locations in the U.S., enhancing its strategic growth and providing greater value to customers in both Canada and the U.S. Ziply Fiber will continue to operate independently, maintaining its headquarters in Kirkland, Washington.

The most recent analyst rating on (TSE:BCE) stock is a Hold with a C$36.00 price target. To see the full list of analyst forecasts on BCE stock, see the TSE:BCE Stock Forecast page.

BCE Sells MLSE Stake to Fund U.S. Fiber Expansion

BCE Inc. has completed the sale of its minority stake in Maple Leaf Sports and Entertainment to Rogers Communications for CA$4.7 billion. The proceeds will support BCE’s acquisition of Ziply Fiber, enhancing its fiber network expansion in the U.S. through a strategic partnership with PSP Investments. This move aligns with BCE’s strategy to grow its fiber Internet and 5G wireless networks, aiming to reach up to 8 million locations in the U.S. Additionally, BCE has secured long-term content rights for TSN, ensuring its position as Canada’s Sports Leader, while maintaining sponsorships with key Toronto sports teams.

The most recent analyst rating on (TSE:BCE) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on BCE stock, see the TSE:BCE Stock Forecast page.