BCE (BCE) AI Stock Analysis

• Market Cap: $28.43B
• Dividend Yield: 5.67%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 73.0
• Beta (1Y): 0.27
• Revenue Growth: -1.23%
• EPS Growth: -78.01%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.69
• Shares Outstanding: 921,824,600
• 10 Day Avg. Volume: 4,032,815
• 30 Day Avg. Volume: 3,643,876
• PEG Ratio: -56.53
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.79
• 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: $33.15
• Price Target Upside: 7.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: C$34.00 ▲(10.25%Upside)

BCE's score is driven by strong cash flow and strategic growth initiatives in the U.S. Fiber market, but is tempered by high leverage and valuation concerns. The dividend cut and revenue challenges highlight the need for cautious optimism. Overall, the company's strategic focus on deleveraging and growth in fiber and digital media sectors is promising, but immediate financial pressures remain.

Positive Factors

Growth Strategy

Management sees a meaningful opportunity to sharply grow Ziply’s subscriber base, with the footprint set to expand significantly.

Media Performance

Media segment showed a better-than-expected performance with a 35.9% increase in EBITDA.

Strategic Partnerships

A new partnership with PSP Investments will support future fiber deployment in the US, moving capital commitments off balance sheet and is seen as a positive development.

Negative Factors

Dividend Cut

The company cut its dividend by 56.1%, which was more than the expected 50% cut, indicating financial strain.

Subscriber Trends

Postpaid mobile net additions were negative, with losses of 9.6K, which is a significant deviation from the expected net additions.

Wireless Performance

Wireless service revenue growth remains in negative territory, reflecting competitive conditions in the market.

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, 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, healthy cash flow generation, and improvements in free cash flow. However, stagnant revenue growth and significant leverage pose challenges.

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
EBITDA	8.39B	7.94B	10.27B	9.82B	9.72B	8.77B
Net Income	566.00M	344.00M	2.26B	2.87B	2.84B	2.63B
Balance Sheet
Total Assets	72.16B	73.48B	71.94B	69.33B	66.76B	60.66B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.97B	1.77B	149.00M	289.00M	224.00M
Total Debt	39.19B	38.31B	36.18B	31.92B	29.67B	26.32B
Total Liabilities	54.54B	56.13B	51.38B	46.81B	43.82B	39.34B
Stockholders Equity	17.33B	17.07B	20.23B	22.18B	22.64B	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: Positive
• Last Price: 30.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 30.84 is above the 20-day moving average (MA) of 30.21, above the 50-day MA of 29.87, and below the 200-day MA of 33.78, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.66 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
BCE	67 Neutral	$28.43B	72.98	2.83%	5.67%	-1.23%	-78.01%
Sector *	66 Neutral	¥373.55B	13.58	2.32%	2.51%	5.41%	-17.67%
RCI		$17.63B	13.54	16.65%	4.49%	―	―
TU		$24.68B	28.70	7.51%	7.33%	―	―
QBR.A	76 Outperform	C$9.58B	12.91	37.46%	3.29%	-1.11%	8.17%
RCI.A	67 Neutral	C$23.99B	14.21	16.56%	4.28%	1.50%	193.09%
QBCRF		$7.04B	12.93	37.69%	3.33%	―	―

BCE Corporate Events

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.

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.