# BCE Inc. (BCE.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Communication Services / Diversified Telecommunication Services. Price C$32.79, market value C$30.6 billion.

## Valuation
- **P/E (trailing): 4.9×** (5-yr avg 44.7×, 3-yr avg 64.0×). BCE Inc. trades at 4.9× trailing earnings, well below its own five-year average of 44.7×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 12.2×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.00**. A PEG of 0.00 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.8×**. Enterprise value is 4.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.7%** (5-yr avg 7.7%). Free cash flow equals 8.7% of the market value, in line with its five-year average of 7.7%. Above 5% is generally attractive.
- **Earnings yield: 20.6%**. The inverse of the P/E: 20.6% of the price is earned each year.

## Profitability
- **Gross margin: 59.2%**. BCE Inc. keeps 59.2% of revenue after the direct cost of what it sells.
- **Operating margin: 21.6%**. 21.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 26.4%**. 26.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 28.2%**. 28.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 7.1%**. Return on all capital, debt included, is 7.1%.
- **Return on assets: 8.0%**. Each dollar of assets produces 8.0% of profit.

## Growth
- **Revenue growth (1 yr): 0.2%** (3-yr 0.4%/yr, 5-yr 1.3%/yr). Revenue grew 0.2% over the last year, against 1.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 3672.2%** (3-yr 31.6%/yr, 5-yr 22.0%/yr). Earnings per share rose 3672.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 0.7%/yr**. Free cash flow has compounded at 0.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.79**. Debt is 1.79 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.7×**. It would take 2.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.9×**. Operating profit covers interest 2.9×, thin but manageable.
- **Current ratio: 0.58** (quick 0.55). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.17**. A Z-score of 1.17 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.34%** (C$1.75 per share, trailing). BCE Inc. yields 5.34%, an income-level yield.
- **Payout ratio: 34%** (67% of free cash flow). 34% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -7.0%/yr** (1-yr -42.1%). The dividend has not grown over five years.
- **Shareholder yield: 6.2%**. Dividends plus net buybacks return 6.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (18 analysts). 18 analysts cover BCE Inc.; the consensus is buy, with an average price target of C$37.17 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 2.1%** (YTD 2.7%, 3-mo -2.4%). The shares are up 2.1% over twelve months including dividends.
- **From 52-week high: -9.5%** (10.6% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): -0.20** (volatility 19%). Beta of -0.20 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BCE.TO · Page: https://foliofundamentals.com/stocks/bce.to

Not investment advice.