BCE (BCE) AI Stock Analysis

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BCE

(TSX:BCE)

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Neutral 59 (OpenAI - 4o)

Rating:59Neutral

Price Target:

C$35.00

▲(9.68% Upside)

BCE's overall score reflects solid financial performance and strategic initiatives in fiber and AI, offset by high leverage and valuation concerns. The strong dividend yield and positive earnings call sentiment support the score, but technical indicators suggest caution.

Positive Factors

Negative Factors

BCE (BCE) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$29.84B

Dividend Yield8.99%

Average Volume (3M)3.23M

Price to Earnings (P/E)70.2

Beta (1Y)0.26

Revenue Growth-0.66%

EPS Growth-78.79%

CountryCA

Employees40,390

SectorCommunication Services

Sector Strength97

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.63

Shares Outstanding932,525,800

10 Day Avg. Volume4,244,693

30 Day Avg. Volume3,229,306

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.31

Enterprise Value/Revenue2.82

Enterprise Value/Gross Profit4.15

Enterprise Value/Ebitda8.31

Forecast

1Y Price Target

$35.34

Price Target Upside10.74% Upside

Rating ConsensusHold

Number of Analyst Covering11

BCE Business Overview & Revenue Model

Company DescriptionBCE 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 MoneyBCE 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong wireless performance, successful fiber acquisition, and significant growth in Bell Business Markets and Media. Despite declines in wireless service revenue and adjusted EPS, BCE's strategic initiatives in fiber, media, and enterprise markets showed promising results. The disappointment with the CRTC decision is notable, but the overall outlook remains optimistic.

Q2-2025 Updates

Positive Updates

Strong Wireless Performance

Bell added 94,479 new net mobile phone subscribers in Q2, with postpaid churn improving by 12 basis points to 1.06%. This marked the first quarter of year-over-year improvement in nearly 3 years.

Successful Fiber Acquisition

Completed the acquisition of Ziply Fiber, expanding Bell's fiber footprint by 1.4 million locations and cementing BCE's position as the third largest fiber Internet provider in North America.

Bell Business Markets Revenue Growth

Bell Business Markets delivered a record quarter of revenue growth, driven by net positive contributions from core connectivity, Ateko managed services, cybersecurity business, and AI Fabric.

Media Revenue and Subscriber Growth

Bell Media's digital revenue was up 9% over last year, with Crave growing direct streaming subscribers by 72%. Media EBITDA was up 7.8%, driving a 1.1 point increase in margin to 27.9%.

Free Cash Flow Increase

BCE delivered a solid 5% increase in free cash flow in the second quarter.

Negative Updates

Wireless Service Revenue Decline

Wireless service revenue was down 0.3%, reflecting sustained competitive pricing pressure and lower roaming due to decreased travel to the U.S.

Adjusted EPS Decrease

Adjusted EPS was down 19.2%, reflecting noncash mark-to-market losses on FX hedges and options, higher interest expense, and lower year-over-year tax adjustments.

CRTC Decision Disappointment

BCE expressed disappointment with the federal government's decision to decline altering the CRTC's decision to expand mandatory wholesale access.

Company Guidance

During the BCE Q2 2025 Results Conference Call, key guidance metrics were outlined for their strategic initiatives and financial expectations. BCE's strategic plan focuses on four pillars: putting the customer first, delivering the best fiber and wireless networks, leading with AI-powered solutions, and building a digital media and content powerhouse. The company reported over 1 million self-installs and a reduction of 1.2 million support calls due to AI-powered tools. They completed the acquisition of Ziply Fiber, expanding their fiber footprint by 1.4 million locations, with expectations for further growth supported by their partnership with PSP Investments. In terms of financial performance, BCE revised its 2025 guidance with revenue and adjusted EBITDA expected to grow within a 0% to 2% range. Despite a 19.2% decline in adjusted EPS due to noncash losses and higher interest expenses, free cash flow is expected to increase between 6% and 11%. Additionally, Bell Business Markets showed notable growth across its core services and AI-powered solutions, positioning BCE to capture significant market share in the AI space. The company is also preparing for an Investor Day on October 14 in Toronto, highlighting its strategic initiatives.

BCE Financial Statement Overview

Summary

BCE demonstrates solid profitability with strong EBIT and EBITDA margins, though revenue growth appears stagnant. The balance sheet is stable but burdened by high leverage, which requires careful management. Cash flow generation is a notable strength, with impressive improvements in free cash flow. The company should focus on enhancing revenue growth while managing leverage to sustain its financial health.

Income Statement

Positive

The company's income statement reveals a stable gross profit margin of 58.8% TTM, with a modest net profit margin of 2.3% TTM. Revenue growth is slightly negative at -0.33% TTM, indicating stagnation in top-line growth. The EBIT margin is healthy at 28.0% TTM, while the EBITDA margin stands at 34.5% TTM. Overall, the company showcases strong profitability metrics, albeit with a need for revenue growth improvement.

Balance Sheet

Neutral

The balance sheet analysis highlights a high debt-to-equity ratio of 2.26 TTM, reflecting significant leverage, which poses a potential risk. Return on equity (ROE) is low at 3.3% TTM, indicating limited effectiveness in generating returns on shareholder investments. The equity ratio is 24.0% TTM, suggesting a moderate level of equity financing compared to total assets. Overall, the company's balance sheet reflects financial stability but with notable leverage concerns.

Cash Flow

Positive

Cash flow analysis shows a robust operating cash flow to net income ratio of 13.1 TTM, indicating strong cash generation relative to net income. The free cash flow growth rate is positive at 31.8% TTM, demonstrating healthy cash flow improvement. The free cash flow to net income ratio is 6.0 TTM, suggesting efficient cash conversion. Overall, the company's cash flow position is strong, with significant improvements in free cash flow.

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	16.58B	16.70B	7.42B	16.53B	9.89B	9.61B
EBITDA	8.29B	7.94B	10.27B	9.82B	9.72B	8.77B
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	-5.51B	-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

Negative

Last Price31.91

Price Trends

50DMA

33.11

Negative

100DMA

31.40

Positive

200DMA

31.57

Positive

Market Momentum

MACD

-0.35

Positive

RSI

34.23

Neutral

STOCH

9.78

Positive

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 31.91 is below the 20-day moving average (MA) of 33.12, below the 50-day MA of 33.11, and above the 200-day MA of 31.57, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 34.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BCE.

BCE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	9.68B	12.75	32.64%	3.23%	-1.02%	4.71%
RCI.B	75 Outperform	26.39B	17.21	13.56%	4.12%	1.87%	71.51%
RCI.A	75 Outperform	26.39B	17.62	13.56%	3.98%	1.87%	71.51%
T	73 Outperform	33.54B	34.14	6.35%	7.49%	2.56%	21.28%
QBR.A	71 Outperform	9.68B	12.73	32.64%	3.21%	-1.02%	4.71%
BCE	59 Neutral	$29.84B	70.18	2.91%	8.99%	-0.66%	-78.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

TSE:BCE

BCE

31.91

-11.52

-26.53%

RCI

Rogers Communication

35.05

-3.70

-9.55%

Telus

15.82

0.32

2.06%

TSE:QBR.A

Quebecor Inc Cl A MV

41.60

7.88

23.37%

TSE:RCI.A

Rogers Comm Cl A

50.25

-5.34

-9.61%

QBCRF

Quebecor

30.52

5.60

22.47%

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.Date of analysis: Sep 14, 2025