BCE (BCE) AI Stock Analysis

• Market Cap: $31.37B
• Dividend Yield: 8.61%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 73.2
• Beta (1Y): 0.18
• Revenue Growth: -0.66%
• EPS Growth: -78.79%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• Shares Outstanding: 932,525,800
• 10 Day Avg. Volume: 4,479,231
• 30 Day Avg. Volume: 3,681,777
• PEG Ratio: -0.96
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 11.87
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 6.47
• 1Y Price Target: $35.30
• Price Target Upside: 5.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: C$35.00 ▲(5.01% Upside)

BCE's overall score reflects a balance of strong strategic initiatives and cash flow generation against challenges in profitability and high leverage. The high dividend yield provides a cushion, but the high P/E ratio suggests caution. The earnings call's positive sentiment on strategic growth areas supports a moderately optimistic outlook.

Positive Factors

Strategic Fiber Expansion

The acquisition of Ziply Fiber significantly enhances BCE's market position in North America, providing a robust platform for future growth in high-speed internet services.

AI and Digital Media Growth

BCE's focus on AI and digital media positions the company to capture significant market share, leveraging technology to enhance service offerings and operational efficiency.

Strong Cash Flow Generation

Consistent growth in free cash flow underscores BCE's financial stability and ability to invest in strategic initiatives, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage could limit BCE's financial flexibility and increase risk, especially in a rising interest rate environment, potentially impacting future investments and growth.

Profitability Challenges

Low net profit margins indicate challenges in converting revenue into profit, which may affect BCE's ability to sustain earnings growth and shareholder returns over time.

Regulatory Challenges

Regulatory challenges, such as the CRTC decision, can hinder BCE's competitive positioning and growth prospects in the telecommunications sector.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 33.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 33.33 is above the 20-day moving average (MA) of 32.96, above the 50-day MA of 33.25, and above the 200-day MA of 31.60, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 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
RCI.A	78 Outperform	C$27.83B	18.89	47.85%	3.63%	2.75%	342.54%
RCI.B	73 Outperform	$29.23B	4.32	47.62%	3.63%	2.75%	342.54%
QBR.B	73 Outperform	$9.98B	12.84	33.80%	3.10%	-1.02%	4.71%
QBR.A	71 Outperform	C$9.90B	13.10	34.50%	3.04%	-1.02%	4.71%
T	69 Neutral	$32.42B	32.88	6.08%	7.77%	2.56%	21.28%
BCE	62 Neutral	$31.37B	73.22	2.91%	8.61%	-0.66%	-78.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

BCE Corporate Events

BCE Unveils Strategic Plan for Sustainable Growth and Shareholder Value

BCE has unveiled a strategic plan aimed at achieving sustainable growth and enhancing shareholder value over the next three years. The plan includes a focus on operational efficiencies, with an expected $1.5 billion in cost savings by 2028, and a decrease in capital intensity to support improved cash flow. Additionally, BCE has formed a strategic partnership for fibre expansion, potentially reaching up to 16 million locations in North America. The company also aims for a net debt leverage ratio of 3.5x by 2027, with a path to 3.0x by 2030, and plans to distribute approximately $5 billion in dividends over the next three years.

The most recent analyst rating on (TSE:BCE) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on BCE stock, see the TSE:BCE Stock Forecast page.

BCE Inc’s Earnings Call: Strategic Growth Amid Challenges

BCE Inc’s recent earnings call painted a picture of strategic growth and expansion, tempered by challenges in specific sectors. The company showcased its achievements in expanding its fiber network and enhancing digital and enterprise offerings. However, it also acknowledged hurdles in wireless service revenue and regulatory challenges, alongside a decline in media advertising revenues.

BCE Inc. Updates Code of Business Conduct to Reinforce Ethical Standards

On August 11, 2025, BCE Inc. released its updated Code of Business Conduct, emphasizing the importance of ethical behavior and compliance with laws in its operations. This initiative underscores BCE’s commitment to maintaining high standards of integrity, ensuring a safe and respectful workplace, and fostering trust among stakeholders, which is crucial for its leadership in the telecommunications industry.

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 Earnings and Strategic Growth

BCE Inc., a leading Canadian communications company, provides advanced broadband Internet, wireless, TV, media, and business communication services across Canada. In its latest earnings report for Q2 2025, BCE Inc. reported a 1.3% increase in consolidated revenue compared to the same quarter last year, with net earnings rising by 6.6% to $644 million. The company also noted a significant improvement in its wireless segment, with a notable decrease in postpaid churn and a continued expansion of its fibre Internet subscriber base.

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.