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BCE (TSE:BCE)
TSX:BCE
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BCE
(TSX:BCE)
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Rating:59Neutral
Price Target:
C$35.00
â–²(8.66% Upside)
BCE's overall score reflects solid financial performance and strategic initiatives in fiber and AI, offset by high leverage and valuation concerns. The strong dividend yield and positive earnings call sentiment support the score, but technical indicators suggest caution.
Positive Factors
Negative Factors
BCE (BCE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$30.04B
Dividend Yield8.91%
Average Volume (3M)3.10M
Price to Earnings (P/E)70.4
Beta (1Y)0.24
Revenue Growth-0.66%
EPS Growth-78.79%
CountryCA
Employees40,390
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.63
Shares Outstanding932,525,800
10 Day Avg. Volume3,954,110
30 Day Avg. Volume3,103,963
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)1.78
Price to Sales (P/S)1.25
P/FCF Ratio11.87
Enterprise Value/Market Cap2.29
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit6.31
Enterprise Value/Ebitda6.47
Forecast
1Y Price Target
$35.37Price Target Upside9.83% Upside
Rating ConsensusHold
Number of Analyst Covering11
BCE Business Overview & Revenue Model
Company DescriptionBCE 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 MoneyBCE 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong wireless performance, successful fiber acquisition, and significant growth in Bell Business Markets and Media. Despite declines in wireless service revenue and adjusted EPS, BCE's strategic initiatives in fiber, media, and enterprise markets showed promising results. The disappointment with the CRTC decision is notable, but the overall outlook remains optimistic.Q2-2025 Updates
Positive Updates
Strong Wireless Performance
Bell added 94,479 new net mobile phone subscribers in Q2, with postpaid churn improving by 12 basis points to 1.06%. This marked the first quarter of year-over-year improvement in nearly 3 years.
Successful Fiber Acquisition
Completed the acquisition of Ziply Fiber, expanding Bell's fiber footprint by 1.4 million locations and cementing BCE's position as the third largest fiber Internet provider in North America.
Bell Business Markets Revenue Growth
Bell Business Markets delivered a record quarter of revenue growth, driven by net positive contributions from core connectivity, Ateko managed services, cybersecurity business, and AI Fabric.
Media Revenue and Subscriber Growth
Bell Media's digital revenue was up 9% over last year, with Crave growing direct streaming subscribers by 72%. Media EBITDA was up 7.8%, driving a 1.1 point increase in margin to 27.9%.
Free Cash Flow Increase
BCE delivered a solid 5% increase in free cash flow in the second quarter.
Negative Updates
Wireless Service Revenue Decline
Wireless service revenue was down 0.3%, reflecting sustained competitive pricing pressure and lower roaming due to decreased travel to the U.S.
Adjusted EPS Decrease
Adjusted EPS was down 19.2%, reflecting noncash mark-to-market losses on FX hedges and options, higher interest expense, and lower year-over-year tax adjustments.
CRTC Decision Disappointment
BCE expressed disappointment with the federal government's decision to decline altering the CRTC's decision to expand mandatory wholesale access.
Company Guidance
During the BCE Q2 2025 Results Conference Call, key guidance metrics were outlined for their strategic initiatives and financial expectations. BCE's strategic plan focuses on four pillars: putting the customer first, delivering the best fiber and wireless networks, leading with AI-powered solutions, and building a digital media and content powerhouse. The company reported over 1 million self-installs and a reduction of 1.2 million support calls due to AI-powered tools. They completed the acquisition of Ziply Fiber, expanding their fiber footprint by 1.4 million locations, with expectations for further growth supported by their partnership with PSP Investments. In terms of financial performance, BCE revised its 2025 guidance with revenue and adjusted EBITDA expected to grow within a 0% to 2% range. Despite a 19.2% decline in adjusted EPS due to noncash losses and higher interest expenses, free cash flow is expected to increase between 6% and 11%. Additionally, Bell Business Markets showed notable growth across its core services and AI-powered solutions, positioning BCE to capture significant market share in the AI space. The company is also preparing for an Investor Day on October 14 in Toronto, highlighting its strategic initiatives.BCE Financial Statement Overview
Summary
BCE shows solid revenue growth and operational efficiency, but faces challenges with profitability and high leverage. Strong cash flow generation supports financial stability, yet high debt levels pose risks.Income Statement
BCE's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 58.77%, indicating efficient cost management. However, the net profit margin is relatively low at 2.33%, suggesting challenges in translating revenue into profit. Revenue growth is positive at 32.9% TTM, but this is partly due to a low base effect from the previous period. EBIT and EBITDA margins are healthy, reflecting operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.26 TTM, indicating significant leverage which could pose financial risk. Return on equity is modest at 3.15% TTM, suggesting limited profitability from shareholder investments. The equity ratio is stable, showing a balanced asset structure, but the high debt level remains a concern.60
Neutral
Cash Flow
Cash flow analysis shows a positive trend with a 13% growth in free cash flow TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.61, indicating strong cash conversion. The free cash flow to net income ratio of 0.45 suggests that a significant portion of earnings is converted into free cash flow, supporting financial flexibility.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.41B | 24.41B | 24.67B | 24.17B | 23.45B | 22.88B |
| Gross Profit | 10.93B | 10.94B | 10.83B | 10.53B | 10.09B | 9.80B |
| EBITDA | 10.64B | 8.66B | 8.70B | 8.62B | 8.33B | 8.10B |
| Net Income | 602.00M | 344.00M | 2.26B | 2.87B | 2.84B | 2.63B |
Balance Sheet | ||||||
| Total Assets | 71.13B | 73.48B | 71.94B | 69.33B | 66.76B | 60.66B |
| Cash, Cash Equivalents and Short-Term Investments | 510.00M | 1.97B | 1.77B | 149.00M | 289.00M | 224.00M |
| Total Debt | 37.56B | 38.31B | 36.18B | 31.92B | 29.67B | 25.97B |
| Total Liabilities | 52.76B | 56.13B | 51.38B | 46.81B | 43.82B | 39.34B |
| Stockholders Equity | 18.07B | 17.07B | 20.23B | 22.18B | 22.64B | 20.99B |
Cash Flow | ||||||
| Free Cash Flow | 3.81B | 2.56B | 3.18B | 3.23B | 1.09B | 3.47B |
| Operating Cash Flow | 7.24B | 6.99B | 7.95B | 8.37B | 8.01B | 7.75B |
| Investing Cash Flow | -2.74B | -4.44B | -5.78B | -5.52B | -7.00B | -3.54B |
| Financing Cash Flow | -5.63B | -1.75B | -1.54B | -2.99B | -1.02B | -4.13B |
BCE Technical Analysis
Neutral
32.21
Price Trends
33.08
Negative
31.53
Positive
31.52
Positive
Market Momentum
-0.35
Positive
40.50
Neutral
34.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BCE, the sentiment is Neutral. The current price of 32.21 is below the 20-day moving average (MA) of 32.75, below the 50-day MA of 33.08, and above the 200-day MA of 31.52, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 34.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BCE.
BCE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 9.74B | 12.82 | 32.64% | 3.20% | -1.02% | 4.71% | |
75 Outperform | 26.94B | 17.38 | 13.56% | 3.96% | 1.87% | 71.51% | |
71 Outperform | 26.94B | 17.26 | 13.56% | 4.02% | 1.87% | 71.51% | |
71 Outperform | 9.74B | 12.70 | 32.64% | 3.21% | -1.02% | 4.71% | |
68 Neutral | 33.51B | 33.97 | 6.35% | 7.50% | 2.56% | 21.28% | |
59 Neutral | $30.04B | 70.44 | 2.91% | 8.91% | -0.66% | -78.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
TSE:BCE
BCE
32.21
-11.02
-25.49%
RCI
Rogers Communication
35.66
-2.73
-7.11%
TU
Telus
15.68
0.08
0.51%
TSE:QBR.A
Quebecor Inc Cl A MV
41.60
7.41
21.67%
TSE:RCI.A
Rogers Comm Cl A
50.50
-3.89
-7.15%
QBCRF
Quebecor
30.84
5.70
22.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.