BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. More Details
Second-rate dividend payer and slightly overvalued.
Share Price & News
How has BCE's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BCE is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: BCE's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: BCE underperformed the Canadian Telecom industry which returned 13.1% over the past year.
Return vs Market: BCE underperformed the Canadian Market which returned 39.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is BCE's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall StBernard Le Duc Is The Chief Human Resources Officer & Executive VP of Corporate Services of BCE Inc. (TSE:BCE) And They Just Sold 45% Of Their Shares
2 weeks ago | Simply Wall StConsider This Before Buying BCE Inc. (TSE:BCE) For The 6.1% Dividend
1 month ago | Simply Wall StIs BCE (TSE:BCE) Using Too Much Debt?
Is BCE undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BCE (CA$59.34) is trading below our estimate of fair value (CA$138.98)
Significantly Below Fair Value: BCE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BCE is poor value based on its PE Ratio (24x) compared to the North American Telecom industry average (12.9x).
PE vs Market: BCE is poor value based on its PE Ratio (24x) compared to the Canadian market (15x).
Price to Earnings Growth Ratio
PEG Ratio: BCE is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: BCE is overvalued based on its PB Ratio (3x) compared to the XN Telecom industry average (2.6x).
How is BCE forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BCE's forecast earnings growth (8.8% per year) is above the savings rate (1.5%).
Earnings vs Market: BCE's earnings (8.8% per year) are forecast to grow slower than the Canadian market (13.4% per year).
High Growth Earnings: BCE's earnings are forecast to grow, but not significantly.
Revenue vs Market: BCE's revenue (3.4% per year) is forecast to grow slower than the Canadian market (6.3% per year).
High Growth Revenue: BCE's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BCE's Return on Equity is forecast to be low in 3 years time (18.4%).
How has BCE performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BCE has a large one-off loss of CA$812.0M impacting its March 31 2021 financial results.
Growing Profit Margin: BCE's current net profit margins (9.8%) are lower than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: BCE's earnings have declined by 2.5% per year over the past 5 years.
Accelerating Growth: BCE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BCE had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Telecom industry average (18%).
Return on Equity
High ROE: BCE's Return on Equity (10.9%) is considered low.
How is BCE's financial position?
Financial Position Analysis
Short Term Liabilities: BCE's short term assets (CA$7.9B) do not cover its short term liabilities (CA$9.5B).
Long Term Liabilities: BCE's short term assets (CA$7.9B) do not cover its long term liabilities (CA$32.4B).
Debt to Equity History and Analysis
Debt Level: BCE's debt to equity ratio (109.1%) is considered high.
Reducing Debt: BCE's debt to equity ratio has increased from 107.6% to 109.1% over the past 5 years.
Debt Coverage: BCE's debt is well covered by operating cash flow (34%).
Interest Coverage: BCE's interest payments on its debt are well covered by EBIT (4.7x coverage).
What is BCE current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BCE's dividend (5.9%) is higher than the bottom 25% of dividend payers in the Canadian market (1.53%).
High Dividend: BCE's dividend (5.9%) is in the top 25% of dividend payers in the Canadian market (4.53%)
Stability and Growth of Payments
Stable Dividend: BCE's dividend payments have been volatile in the past 10 years.
Growing Dividend: BCE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (136.2%), BCE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BCE's dividends in 3 years are not forecast to be well covered by earnings (106.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mirko Bibic (52 yo)
Mr. Mirko Bibic has been President and Chief Executive Officer BCE and Bell Canada since January 6, 2020. Mr. Bibic served as the Chief Operating Officer at BCE Inc. and Bell Canada since October 4, 2018 u...
CEO Compensation Analysis
Compensation vs Market: Mirko's total compensation ($USD7.83M) is about average for companies of similar size in the Canadian market ($USD6.59M).
Compensation vs Earnings: Mirko's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: BCE's management team is seasoned and experienced (6.1 years average tenure).
Experienced Board: BCE's board of directors are considered experienced (5.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BCE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
BCE Inc.'s company bio, employee growth, exchange listings and data sources
- Name: BCE Inc.
- Ticker: BCE
- Exchange: TSX
- Founded: 1880
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: CA$53.681b
- Shares outstanding: 904.63m
- Website: https://www.bce.ca
Number of Employees
- BCE Inc.
- Building A
- 4th Floor
- H3E 3B3
BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates through three ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/15 22:45|
|End of Day Share Price||2021/05/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.