BCE (BCE) AI Stock Analysis

• Market Cap: $27.39B
• Dividend Yield: 13.29%
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): 165.3
• Beta (1Y): 0.30
• Revenue Growth: -1.07%
• EPS Growth: -92.15%
• Country: CA
• Employees: 40,390
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.69
• Shares Outstanding: 921,824,600
• 10 Day Avg. Volume: 2,682,980
• 30 Day Avg. Volume: 3,862,603
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $32.28
• Price Target Upside: 9.88% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

BCE's overall stock score reflects a challenging yet potentially promising situation. The company exhibits strong cash flow management and impressive digital media growth, but faces significant risks from high leverage, declining revenues, and competitive pressures. The high P/E ratio and regulatory challenges add further caution. However, attractive dividend yield and strategic initiatives for tech services and U.S. expansion provide a positive outlook.

Positive Factors

Adjusted EPS

Adjusted EPS was higher than expected, coming in well ahead of analyst estimates.

Capex Reductions

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.

Negative Factors

Competitive Pressure

BCE's wireless segment posted soft returns due to competitive conditions, with wireless service revenue growth remaining in negative territory.

Dividend Uncertainty

There was no clarity on how and when the dividend sustainability question will be addressed.

Subscriber Growth Challenges

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

BCE Business Overview & Revenue Model

Company Description

BCE Inc. is a leading Canadian communications company headquartered in Montreal, Quebec. It operates through four main sectors: Bell Wireless, Bell Wireline, Bell Media, and Bell Broadband. The company provides a comprehensive suite of telecommunications services, including wireless communications, high-speed Internet, IPTV, digital television, and media services. BCE is recognized for its strong brand presence through its flagship Bell brand and is a major player in the Canadian entertainment and media industry.

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: 29.38
• 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 29.38 is below the 20-day moving average (MA) of 30.04, below the 50-day MA of 31.81, and below the 200-day MA of 36.94, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 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
QBR.A	80 Outperform	C$8.73B	11.85	38.49%	3.49%	3.76%	14.27%
QBR.B	79 Outperform	$8.73B	11.64	38.85%	3.47%	3.76%	14.27%
RCI.A	75 Outperform	C$19.36B	12.16	16.56%	5.04%	1.50%	193.09%
RCI.B	74 Outperform	$19.36B	10.68	16.65%	5.65%	1.50%	193.09%
T	73 Outperform	$31.89B	31.25	6.26%	7.44%	0.67%	15.00%
BCE	63 Neutral	$27.39B	165.30	1.80%	13.29%	-1.07%	-92.15%
Sector *	60 Neutral	$13.74B	7.25	-2.74%	3.81%	2.21%	-37.97%

BCE Corporate Events

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.

Spark’s Take on TSE:BCE Stock

According to Spark, TipRanks’ AI Analyst, TSE:BCE is a Neutral.

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.

To see Spark’s full report on TSE:BCE stock, click here.

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.

Spark’s Take on TSE:BCE Stock

According to Spark, TipRanks’ AI Analyst, TSE:BCE is a Neutral.

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.

To see Spark’s full report on TSE:BCE stock, click here.

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.

Spark’s Take on TSE:BCE Stock

According to Spark, TipRanks’ AI Analyst, TSE:BCE is a Neutral.

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.

To see Spark’s full report on TSE:BCE stock, click here.