BCE (BCE) AI Stock Analysis

• Market Cap: $27.22B
• Dividend Yield: 13.32%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.29
• Revenue Growth: -1.23%
• EPS Growth: -78.01%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.69
• Shares Outstanding: 921,824,600
• 10 Day Avg. Volume: 4,484,363
• 30 Day Avg. Volume: 3,949,536
• PEG Ratio: 0.37
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.48
• Price Target Upside: 13.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: C$32.00 ▲( 8.36% Upside)

BCE's overall stock score reflects a challenging yet potentially promising situation. While the company exhibits strong cash flow management and impressive digital media growth, it faces significant risks from high leverage, declining revenues, and competitive pressures. The high P/E ratio and regulatory challenges add further caution. However, the attractive dividend yield and strategic initiatives for tech services provide a positive outlook.

Positive Factors

De-risking Efforts

Efforts to improve the balance sheet, including the buyback of bonds trading at a discount, are encouraging.

Media Performance

Media segment performance was better than expected, with Media EBITDA up 35.9% and media revenues up 6.9% year-over-year.

Negative Factors

Dividend Cut

BCE cut their dividend by 56.1%, compared to expectations of a 50% cut, and eliminated discounted treasury issuances under the DRIP programme.

Subscriber Additions

BCE’s sub adds were noticeably weaker, with a broadband net adds figure of 9.5k, suggesting a virtually flat sub base.

Wireless Revenue

Wireless service revenue growth remains in negative territory, reflecting competitive conditions, with mobile phone postpaid net losses.

BCE Business Overview & Revenue Model

Company Description

BCE Inc. is a leading Canadian communications company headquartered in Montreal, Quebec. It operates through four main sectors: Bell Wireless, Bell Wireline, Bell Media, and Bell Broadband. The company provides a comprehensive suite of telecommunications services, including wireless communications, high-speed Internet, IPTV, digital television, and media services. BCE is recognized for its strong brand presence through its flagship Bell brand and is a major player in the Canadian entertainment and media industry.

How the Company Makes Money

BCE generates revenue primarily through its telecommunications services, with key revenue streams coming from wireless service subscriptions, wireline services, Internet and television subscriptions, and media content distribution. The Bell Wireless segment earns money by providing mobile voice and data services to consumers and businesses. The Bell Wireline and Broadband segments generate income through landline services, high-speed Internet, and IPTV services. Bell Media contributes to the company's earnings by offering television, radio broadcasting, and digital media services, supplemented by advertising revenue. The company's strategic partnerships with content providers and technology firms also play a significant role in expanding its service offerings and enhancing revenue generation.

BCE Financial Statement Overview

Summary

BCE demonstrates solid profitability with strong EBIT and EBITDA margins, but stagnant revenue growth. The balance sheet is stable but burdened by high leverage. Cash flow generation is strong, 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.33B	24.41B	24.67B	24.17B	23.45B	22.88B
	Gross Profit
14.30B	16.70B	7.42B	16.53B	9.89B	9.61B
	EBIT
6.82B	5.55B	5.50B	5.41B	5.44B	5.01B
	EBITDA
8.39B	7.94B	10.27B	9.82B	9.72B	8.77B
	Net Income Common Stockholders
566.00M	344.00M	2.26B	2.87B	2.84B	2.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.05B	1.97B	1.77B	149.00M	207.00M	224.00M
	Total Assets
72.16B	73.48B	71.94B	69.33B	66.73B	60.66B
	Total Debt
39.19B	38.31B	36.18B	31.92B	29.67B	26.32B
	Net Debt
38.14B	36.74B	35.41B	31.77B	29.47B	26.10B
	Total Liabilities
54.54B	56.13B	51.38B	46.81B	43.81B	39.34B
	Stockholders Equity
17.33B	17.07B	20.23B	22.18B	22.61B	20.99B
Cash Flow		Free Cash Flow
3.38B	2.56B	3.18B	3.23B	1.09B	3.47B
	Operating Cash Flow
7.43B	6.99B	7.95B	8.37B	8.01B	7.75B
	Investing Cash Flow
-3.88B	-4.44B	-5.78B	-5.51B	-7.00B	-3.54B
	Financing Cash Flow
-3.46B	-1.75B	-1.54B	-2.99B	-1.02B	-4.13B

BCE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 29.53 is below the 20-day moving average (MA) of 30.15, below the 50-day MA of 31.10, and below the 200-day MA of 36.24, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.89 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
QBR.A	79 Outperform	C$8.72B	11.54	37.46%	3.49%	-1.11%	8.17%
QBR.B	78 Outperform	$8.72B	11.49	37.69%	3.48%	-1.11%	8.17%
RCI.A	75 Outperform	C$19.72B	12.14	16.56%	5.01%	1.50%	193.09%
RCI.B	74 Outperform	$19.72B	10.90	16.65%	5.51%	1.50%	193.09%
T	68 Neutral	$33.52B	27.97	7.51%	7.05%	1.73%	54.01%
BCE	63 Neutral	$27.22B	69.88	2.83%	13.32%	-1.23%	-78.01%
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%

BCE Corporate Events

BCE and PSP Investments Form Network FiberCo to Boost U.S. Fiber Expansion

BCE Inc. and PSP Investments have announced a strategic partnership to form Network FiberCo, aimed at accelerating fiber infrastructure development in underserved U.S. markets through Ziply Fiber. This partnership, with a potential investment of over US$1.5 billion from PSP Investments, seeks to expand Ziply Fiber’s reach to up to 8 million fiber passings, enhancing BCE’s U.S. market presence and improving financial metrics like EBITDA. The collaboration leverages BCE’s operational capabilities and PSP Investments’ infrastructure expertise, promising sustainable growth and value for stakeholders.

BCE Modifies Shareholder Dividend Reinvestment Plan

BCE Inc. announced changes to its Shareholder Dividend Reinvestment Plan (DRP), where common shares will no longer be issued from treasury at a 2% discount but will be purchased on the secondary market. This modification, effective from July 15, 2025, aims to streamline the DRP while maintaining its benefits for shareholders, allowing them to acquire additional shares without commission fees. This move may impact BCE’s financial operations and shareholder engagement strategies.

BCE Inc. Reports Strong Q1 2025 Earnings and Strategic U.S. Expansion

BCE Inc. reported a significant increase in net earnings for the first quarter of 2025, with a 49.5% rise to $683 million. Despite a slight decrease in adjusted EPS, the company saw a substantial increase in free cash flow and operating cash flows. Bell Media experienced revenue growth driven by digital platforms. BCE has adjusted its dividend to strengthen its balance sheet amidst economic uncertainties and announced a strategic partnership with PSP Investments to enhance fiber infrastructure development in the U.S. The company is also focusing on technological advancements and cybersecurity services to drive future growth.