Skip to Content

BCE Inc BCE

Morningstar Rating
$37.17 +0.01 (0.03%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

BCE Earnings: Hostile Stance Toward Regulators and Poor Cash Flow Guidance Cause Concern

BCE reported a decent fourth quarter, and its 2024 sales and EBITDA guidance was consistent with recent trends. However, management stepped up its aggression against what it sees as overly intrusive regulations and used that backdrop to support a series of decisions to restructure its business. With multiple moving parts, management guided to a significant drop in free cash flow in 2024 and was reticent to say if there would be a bounceback in 2025. We’re reducing our fair value estimate to CAD 60 from CAD 65 due to the change in our cash flow expectations and greater long-term uncertainty.

Price vs Fair Value

BCE is trading at a 17% discount.
Price
$37.15
Fair Value
$36.00
Uncertainty
Low
1-Star Price
$55.77
5-Star Price
$75.00
Economic Moat
Ycwklm
Capital Allocation
Vwlncsnkw

Bulls Say, Bears Say

Bulls

The immense network improvement resulting from BCE's fiber-to-the-home buildout will lead to further wireline share gains and margin improvement.

Bears

A combined Quebecor and Freedom Mobile should make for a strong fourth national wireless competitor, and it will likely undercut the Big Three on price, limiting pricing power and pressuring margins.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BCE is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$37.16
Day Range
$37.1637.33
52-Week Range
$36.1648.37
Bid/Ask
$37.16 / $37.17
Market Cap
$33.92 Bil
Volume/Avg
205,126 / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
15.88
Price/Sales
1.85
Dividend Yield (Trailing)
7.77%
Dividend Yield (Forward)
7.96%
Total Yield
7.77%

Company Profile

BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with over 10 million customers constituting about 30% of the market. It is also the ILEC (incumbent local exchange carrier—the legacy telephone provider) throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. Additionally, BCE has a media segment, which holds television, radio, and digital media assets. BCE licenses the Canadian rights to movie channels including HBO, Showtime, and Starz.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
44,610

Competitors

Valuation

Metric
BCE
QBR.B
T
Price/Earnings (Normalized)
15.8811.0123.43
Price/Book Value
2.714.212.15
Price/Sales
1.851.371.72
Price/Cash Flow
5.654.747.14
Price/Earnings
BCE
QBR.B
T

Financial Strength

Metric
BCE
QBR.B
T
Quick Ratio
0.410.410.54
Current Ratio
0.570.660.67
Interest Coverage
3.403.171.82
Quick Ratio
BCE
QBR.B
T

Profitability

Metric
BCE
QBR.B
T
Return on Assets (Normalized)
4.15%5.79%2.47%
Return on Equity (Normalized)
16.10%44.26%8.37%
Return on Invested Capital (Normalized)
6.85%10.47%5.34%
Return on Assets
BCE
QBR.B
T
See how this stock stacks up to its competitors with Morningstar Investor

Telecom Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TMUS
T-Mobile US IncSgvpls$194.4 Bil
VZ
Verizon Communications IncCzwkvp$168.6 Bil
CMCSA
Comcast Corp Class ARmzk$167.4 Bil
T
AT&T IncXmlwd$121.3 Bil
DTEGY
Deutsche Telekom AG ADRZdymmb$118.7 Bil
KDDIY
KDDI Corp ADRLwrcwb$63.2 Bil
AMX
America Movil SAB de CV ADR - Series BMpcvy$58.9 Bil
CHTR
Charter Communications Inc Class ABthcjw$41.9 Bil
ORAN
Orange SA ADRQsb$30.8 Bil

Sponsor Center