BCE (TSE:BCE)
TSX:BCE
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BCE
(TSX:BCE)
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Rating:67Neutral
Price Target:
C$36.00
▲(9.06% Upside)
Action:ReiteratedDate:05/09/26
The score is driven primarily by solid operating profitability and stable revenue, partially offset by elevated leverage and a recent decline in free cash flow conversion. Valuation is a positive (moderate P/E and ~5.3% yield), while technicals are mixed with weak momentum signals. Earnings call takeaways are moderately positive on cash flow and operational execution, but tempered by EPS-down guidance and competitive/advertising headwinds.
Positive Factors
Margin Expansion
Sustained adjusted EBITDA margin expansion reflects durable cost discipline, scale in network operations and stronger operating leverage. Higher margins improve cash generation capacity, fund capital allocation priorities and provide a buffer against cyclical revenue swings over the medium term.
Negative Factors
Elevated Leverage
High absolute and relative debt levels constrain financial flexibility, increase sensitivity to rising interest costs and limit room for opportunistic M&A or accelerated buybacks. Progress to a lower leverage target is planned, but current leverage raises refinancing and balance‑sheet risks if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained adjusted EBITDA margin expansion reflects durable cost discipline, scale in network operations and stronger operating leverage. Higher margins improve cash generation capacity, fund capital allocation priorities and provide a buffer against cyclical revenue swings over the medium term.
Read all positive factors
BCE (BCE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$30.86B
Dividend Yield7.42%
Average Volume (3M)3.64M
Price to Earnings (P/E)12.5
Beta (1Y)-0.04
Revenue Growth1.55%
EPS Growth1496.64%
CountryCA
Employees40,390
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)6.77
Shares Outstanding932,525,800
10 Day Avg. Volume3,751,845
30 Day Avg. Volume3,644,614
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.33
Price to Sales (P/S)1.24
P/FCF Ratio9.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$38.50Price Target Upside16.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.59
Revenue Forecast (FY)C$25.11B
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 Wir...
How the Company Makes Money
BCE makes money primarily by selling subscription-based communications services and related products to consumers, businesses, and government customers, and by monetizing media content through advertising and distribution. Its key revenue streams ...
BCE Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and financial picture: management reported achievement of 2025 guidance, record-adjusted EBITDA margin, double-digit FCF growth, meaningful fiber and AI momentum, successful integration and solid margins at Ziply, and strong Crave and digital media trends. At the same time, there are notable near-term headwinds — adjusted EPS decline driven by higher D&A and interest, Q4 advertising softness at Bell Media, product revenue declines from BYOD and equipment timing, competitive wireless promotions that could pressure ARPU, TPIA/reseller execution issues in Western Canada, and a reprioritized Ziply build that slows near-term passings. Overall, the positives (margin expansion, FCF strength, fiber/AI/Crave growth, Ziply performance and clear capital allocation discipline) outweigh the negatives, but management is appropriately cautious in its 2026 guidance given the cited risks.Positive Updates
Record-High Adjusted EBITDA Margin and Margin Expansion
Adjusted EBITDA increased 0.7% in 2025 and adjusted EBITDA margin improved 20 basis points to 43.6% for the year (described as the strongest annual margin result in more than 30 years). Q4 adjusted EBITDA margin expanded ~130 basis points year-over-year to 44.2% in the CTS Canada reporting, driven by cost discipline and a 6.1% reduction in operating costs.
Negative Updates
Adjusted EPS Decline
Adjusted EPS declined 7.9% in 2025, attributed primarily to higher depreciation & amortization (approx. $250 million step-up expected in 2026) and increased interest expense (approx. $100 million step-up), with 2026 adjusted EPS guidance of $2.50–$2.65 per share (5%–11% lower versus 2025).
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Q4-2025 Updates
Positive
Negative
Record-High Adjusted EBITDA Margin and Margin Expansion
Adjusted EBITDA increased 0.7% in 2025 and adjusted EBITDA margin improved 20 basis points to 43.6% for the year (described as the strongest annual margin result in more than 30 years). Q4 adjusted EBITDA margin expanded ~130 basis points year-over-year to 44.2% in the CTS Canada reporting, driven by cost discipline and a 6.1% reduction in operating costs.
Read all positive updates
Company Guidance
BCE's 2026 guidance targets consolidated revenue growth of 1–5% and adjusted EBITDA growth of 0–4%, adjusted EPS of $2.50–$2.65 (about 5–11% lower vs. 2025) reflecting an approximate $250M step‑up in depreciation & amortization and roughly $100M higher interest expense (tax adjustments ~‑$0.02/share); capital expenditure is expected to remain about $3.7B (capital intensity ≤15%), free cash flow is guided to grow 4–10% (supporting the ~15% CAGR objective for free cash flow after lease liabilities to 2028), dividend payout ratio to remain targeted at 40–55%, cost savings of $1.5B by 2028 are expected to continue, and balance‑sheet metrics include $2.5B of available liquidity, a $4.4B pension solvency surplus, nominal net debt of $40.2B, net debt/adjusted EBITDA of ~3.8x (3.7x pro forma) with a goal to trend toward 3.5x by end‑2027.BCE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.71B | 24.47B | 24.41B | 24.67B | 24.17B | 23.45B |
| Gross Profit | 14.56B | 16.75B | 16.70B | 16.75B | 16.53B | 16.16B |
| EBITDA | 14.72B | 14.72B | 7.71B | 9.72B | 9.76B | 9.63B |
| Net Income | 6.44B | 6.46B | 344.00M | 2.26B | 2.87B | 2.84B |
Balance Sheet | ||||||
| Total Assets | 81.38B | 80.08B | 73.48B | 71.94B | 69.33B | 66.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.38B | 320.00M | 1.97B | 1.77B | 149.00M | 289.00M |
| Total Debt | 42.96B | 41.06B | 40.50B | 36.18B | 31.92B | 29.67B |
| Total Liabilities | 57.72B | 56.87B | 56.13B | 51.38B | 46.81B | 43.82B |
| Stockholders Equity | 23.36B | 22.92B | 17.07B | 20.23B | 22.18B | 22.64B |
Cash Flow | ||||||
| Free Cash Flow | 2.76B | 3.29B | 2.56B | 3.18B | 3.23B | 1.09B |
| Operating Cash Flow | 6.57B | 6.99B | 6.99B | 7.95B | 8.37B | 8.01B |
| Investing Cash Flow | -4.17B | -3.60B | -4.44B | -5.78B | -5.52B | -7.00B |
| Financing Cash Flow | -2.19B | -4.65B | -1.75B | -1.54B | -2.99B | -1.02B |
BCE Technical Analysis
Neutral
33.01
Price Trends
34.58
Negative
33.52
Negative
32.72
Positive
Market Momentum
-0.58
Positive
38.67
Neutral
45.19
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 33.01 is below the 20-day moving average (MA) of 34.06, below the 50-day MA of 34.58, and above the 200-day MA of 32.72, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$12.78B | 13.93 | 35.31% | 2.69% | 0.65% | 15.80% | |
71 Outperform | C$27.37B | 16.49 | 40.28% | 3.94% | 7.44% | 297.46% | |
71 Outperform | C$12.78B | 13.93 | 35.31% | 2.70% | 0.65% | 15.80% | |
67 Neutral | C$30.86B | 12.53 | 31.99% | 7.42% | 1.55% | 1496.64% | |
65 Neutral | C$27.37B | 16.31 | 40.28% | 3.89% | 7.44% | 297.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$27.26B | 23.80 | 7.68% | 9.49% | 1.03% | 9.34% |
* Communication Services Sector Average
TSE:BCE
BCE
33.09
3.13
10.46%
TSE:RCI.B
Rogers Communication
50.55
16.47
48.32%
TSE:T
Telus
17.46
-3.04
-14.83%
TSE:QBR.A
Quebecor Inc Cl A MV
56.66
18.53
48.61%
TSE:RCI.A
Rogers Comm Cl A
51.10
13.09
34.45%
TSE:QBR.B
Quebecor
56.81
19.72
53.15%
BCE Corporate Events
Business Operations and StrategyDividends
BCE to Convert All Series AN Preferred Shares Into Fixed-Rate Series AM Shares
Positive
Mar 17, 2026
BCE Inc. will convert all of its floating-rate Cumulative Redeemable First Preferred Shares, Series AN, into fixed-rate Series AM Preferred Shares on March 31, 2026, following a shareholder conversion process that left fewer than 1,000,000 Series ...
Business Operations and Strategy
Bell to Build 300 MW AI Data Centre in Saskatchewan, Securing Cerebras and CoreWeave as Key Tenants
Positive
Mar 16, 2026
Bell Canada is partnering with the Government of Saskatchewan to build a 300 MW AI-focused data centre in the Rural Municipality of Sherwood near Regina, in what it calls its largest-ever investment in the province and the largest purpose-built AI...
Business Operations and StrategyFinancial Disclosures
Bell to Build Canada’s Largest AI Data Centre in Saskatchewan in Major BCE Investment
Positive
Mar 16, 2026
Bell Canada is partnering with the Government of Saskatchewan to build a 300 MW AI-focused data centre in the Rural Municipality of Sherwood near Regina, marking Bell’s largest-ever investment in the province and the largest purpose-built AI...
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.