BCE (BCE) AI Stock Analysis

• Market Cap: $27.30B
• Dividend Yield: 12.82%
• Average Volume (3M): 4.36M
• Price to Earnings (P/E): 165.7
• Beta (1Y): 0.30
• Revenue Growth: -1.07%
• EPS Growth: -92.15%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 0.79
• Shares Outstanding: 921,824,600
• 10 Day Avg. Volume: 5,423,097
• 30 Day Avg. Volume: 4,364,855
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.22
• Price to Cash Flow (P/CF): 4.00
• P/FCF Ratio: 5.70
• 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: $33.28
• Price Target Upside: 8.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

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

Capital Expenditures

The guidance indicated a better-than-expected free cash flow growth of 11% to 19%, suggesting steep reductions in capital expenditures in Canada.

Cost Savings

The company highlighted its $1B cost savings goal, indicating that rationalization efforts thus far have lowered costs by $500M.

Media Revenue

Media EBITDA increased by 14%, driven by growth from Crave and direct-to-consumer sports.

Negative Factors

Competitive Pressure

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

Dividend Concerns

A dividend cut is anticipated, overdue, needed, and correct.

Subscriber Growth

The company's internet net additions were below expectations, suggesting potential challenges in subscriber growth.

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 shows a mixed financial performance with strong cash flow management but faces challenges in revenue and profit growth. The company has a solid equity base but is highly leveraged, which could impact financial stability if not managed carefully. While cash flow remains strong, declining revenues and profitability margins require strategic adjustments to improve future performance.

Income Statement

The income statement reflects a mixed performance with declining revenue and net income. The gross profit margin is strong at 68.45% for 2024, but the net profit margin has significantly dropped to 1.41%, indicating profitability challenges. Revenue growth has been negative, with a decline of 1.07% from 2023 to 2024. EBIT margin is not available for 2024, indicating potential operational inefficiencies. However, the EBITDA margin remains healthy at 31.72% in 2024.

Balance Sheet

The balance sheet shows a solid equity base but also a high level of debt. The debt-to-equity ratio has increased to 2.24 in 2024, suggesting high leverage, which could pose risks. The return on equity is low at 2.01%, indicating limited returns on shareholder investments. The equity ratio is stable at 23.23%, showing a reasonable equity position against total assets.

Cash Flow

Cash flow performance is stable with a focus on positive free cash flow. The free cash flow to net income ratio is strong, reflecting effective cash generation relative to net income. However, free cash flow growth is negative, down 19.55% from 2023 to 2024, which could impact future liquidity. Operating cash flow coverage of net income is robust, indicating good cash earnings quality.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.41B	24.67B	24.17B	23.45B	22.88B
	Gross Profit
16.70B	7.42B	16.53B	9.89B	9.61B
	EBIT
0.00	5.50B	5.41B	5.44B	5.01B
	EBITDA
7.74B	10.27B	9.82B	9.72B	8.77B
	Net Income Common Stockholders
344.00M	2.26B	2.87B	2.84B	2.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.97B	1.77B	149.00M	207.00M	224.00M
	Total Assets
73.48B	71.94B	69.33B	66.73B	60.66B
	Total Debt
38.31B	36.18B	31.92B	29.67B	26.32B
	Net Debt
36.74B	35.41B	31.77B	29.47B	26.10B
	Total Liabilities
56.13B	51.38B	46.81B	43.81B	39.34B
	Stockholders Equity
17.07B	20.23B	22.18B	22.61B	20.99B
Cash Flow		Free Cash Flow
2.56B	3.18B	3.23B	1.09B	3.47B
	Operating Cash Flow
6.99B	7.95B	8.37B	8.01B	7.75B
	Investing Cash Flow
-4.44B	-5.78B	-5.51B	-7.00B	-3.54B
	Financing Cash Flow
-1.75B	-1.54B	-2.99B	-1.02B	-4.13B

BCE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 30.77 is below the 20-day moving average (MA) of 31.17, below the 50-day MA of 32.36, and below the 200-day MA of 37.54, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.16 is Neutral, 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
ATD	76 Outperform	C$69.48B	19.51	18.66%	1.03%	11.62%	-8.08%
Sector *	58 Neutral	$13.15B	6.73	-2.46%	3.87%	2.36%	-36.74%
BCE	57 Neutral	$27.30B	165.70	1.80%	12.82%	-1.07%	-92.15%

BCE Corporate Events

BCE Inc. Reports Strong 2024 Results and Sets 2025 Targets

BCE Inc. reported a successful fourth quarter and full-year performance for 2024, achieving its non-revenue and revised revenue targets. The company experienced growth in adjusted EBITDA and net earnings, with significant increases in mobile phone and internet subscriber activations. Despite a decrease in cash flow from operating activities due to higher interest payments and tax installments, BCE maintained its annual dividend and reported growth in digital media revenue, positioning itself strongly for future tech services expansion.