BCE

BCE

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Communication Services

industry

Telecom Services

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

05/07/26

Business Summary

BCE operates as an incumbent telecommunications provider, generating recurring cash flow through wireless, broadband, and enterprise connectivity services. Its moat is built on entrenched infrastructure, spectrum assets, and long-term customer relationships that are expensive and impractical for new entrants to replicate. The business converts high-margin network access into predictable subscription revenue, supporting operating margins of 27.40%. Capital intensity is high, but once networks are deployed, incremental customers carry strong contribution margins, underpinning its ability to generate consistent operating cash flow.

VALUATION

P/E

4.8

Market Cap ($M USD)

$21,727

Forward P/E

8.6

PEG

115

PRICE TO SALES

1.2

PRICE TO BOOK

1.5

EV / EBITDA

5

5-Year Average P/E

DIVIDEND

Yield

5.50%

Annual Payout

$1.28

Payout Ratio

47.40%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-12.90%

Financial Health & Profitability

Earnings Per Share

$4.88

Next Year EPS Growth Estimate

$2.72

Next Year Revenue Growth Estimate

1.60%

Return on Equity (ROE)

27.40%

Operating Margin

22.20%

Debt-to-Equity

1.8

Piotroski F-Score

7

Altman Z-Score

0.7

Return on Invested Capital (ROIC)

13.50%%

Current Ratio

0.6

Quick Ratio

Gainseekers Quantitative Analysis

Summary

BCE screens as statistically cheap but fundamentally stressed. A 4.8 P/E and 8.6 forward P/E would normally signal deep value, yet the 115 forward PEG ratio implies growth is essentially nonexistent relative to price, and the 0.7 Altman Z-Score is a flashing balance sheet distress warning. The market is clearly discounting risk, not growth, and with a 0.6 current ratio the liquidity cushion is thin. This is not a classic mispricing — it’s a low-multiple equity carrying material financial risk, and the valuation reflects that fragility.

AI Exposure / Tech Reliance

As a Telecom Services operator, BCE sits in infrastructure that is foundational to AI data transmission and connectivity demand. AI expansion increases bandwidth consumption, which structurally supports telecom networks. However, telecom is capital intensive and slow-growing, so while AI may stabilize demand, it is unlikely to meaningfully accelerate earnings growth given the current 115 PEG profile.

The Bull Case

A value-oriented investor could justify ownership based on operational efficiency and capital returns. A 27.40% operating margin combined with a 13.50% ROIC shows the core business generates solid returns on invested capital despite sector maturity. The Piotroski F-Score of 7 indicates improving financial trends and operational stability, while a modest 1.2 Price/Sales and 1.5 Price/Book suggest the market is not assigning a premium multiple. With a 4.8 P/E and EPS of 5 against forward EPS of 4.88, earnings remain substantial relative to market cap, creating potential upside if balance sheet concerns stabilize.

The Bear Case

The bear case is balance-sheet driven and severe. A 0.7 Altman Z-Score combined with a 0.6 current ratio signals financial vulnerability, and while Debt/Equity is listed at 22.20%, liquidity metrics suggest constrained flexibility. The 115 forward PEG ratio implies the earnings outlook does not justify even the reduced forward multiple, and Return on Equity at just 1.60% reflects weak equity efficiency. Institutional ownership at $27.01 and a negative Short % of Float figure further cloud sentiment signals, while the payout metrics appear inconsistent relative to earnings, raising sustainability questions.

Market Sentiment & Smart Money

Short Interest %

1.70%

Analyst Consensus

2.43

Average Analyst Price Target

$27.01

Institutional Ownership %

48.00%

1-Year Beta

-0.12

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

88.10%%

Distance to 52-Week Low

111.40%%