BCE (BCE) AI Stock Analysis

• Market Cap: $31.54B
• Dividend Yield: 10.02%
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): 74.2
• Beta (1Y): 0.29
• Revenue Growth: -0.66%
• EPS Growth: -78.79%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• Shares Outstanding: 932,525,800
• 10 Day Avg. Volume: 2,639,182
• 30 Day Avg. Volume: 3,007,791
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 8.31
• 1Y Price Target: $35.35
• Price Target Upside: 3.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: C$38.00 ▲(11.01% Upside)

BCE's overall stock score reflects a stable financial performance with strong cash flow generation, but challenges with profitability and high leverage. The technical analysis suggests potential overbought conditions, while the valuation indicates a high P/E ratio offset by an attractive dividend yield. The earnings call provided an optimistic outlook with strategic initiatives in fiber and media showing promise.

Positive Factors

Financial Performance

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 division has posted its fifth successive quarter of growth, indicating sustained strength in this area.

Wireless Services

Wireless postpaid churn has improved significantly, leading to better-than-expected postpaid net additions.

Negative Factors

Broadband Services

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

Consolidated Performance

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

Wireline Revenues

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 solid profitability with strong EBIT and EBITDA margins, though revenue growth appears stagnant. The balance sheet is stable but burdened by high leverage, which requires careful management. Cash flow generation is a notable strength, with impressive improvements in free cash flow. The company should focus on enhancing revenue growth while managing leverage to sustain its financial health.

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	24.41B	24.41B	24.67B	24.17B	23.45B	22.88B
Gross Profit	16.58B	16.70B	7.42B	16.53B	9.89B	9.61B
EBITDA	8.29B	7.94B	10.27B	9.82B	9.72B	8.77B
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	-5.51B	-7.00B	-3.54B
Financing Cash Flow	-5.63B	-1.75B	-1.54B	-2.99B	-1.02B	-4.13B

BCE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 34.23 is below the 20-day moving average (MA) of 34.55, above the 50-day MA of 33.14, and above the 200-day MA of 32.11, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 is Neutral, 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
BCE	62 Neutral	$31.54B	74.17	2.91%	10.02%	-0.66%	-78.79%
Sector *	60 Neutral	$46.60B	4.09	-13.11%	4.12%	1.85%	-42.71%
RCI	―	$19.44B	17.45	13.68%	3.99%	―	―
TU	―	$25.18B	35.78	6.08%	6.96%	―	―
RCI.A	75 Outperform	C$26.90B	18.28	13.93%	3.85%	1.87%	71.51%
QBR.A	70 Outperform	C$10.05B	13.14	34.50%	3.06%	-1.02%	4.71%
QBCRF	―	$7.27B	13.29	33.80%	3.15%	―	―

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.