Download PDF

1. Company Snapshot

1.a. Company Description

BCE 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.

Show Full description

1.b. Last Insights on BCE

BCE Inc.'s recent performance was negatively driven by lower revenues in its Q4 2024 earnings, resulting in an earnings per share (EPS) miss. The decline in Bell CTS segment revenue, despite growth in Bell Media business, contributed to the revenue fall. Additionally, the company's FY 2024 revenue declined 1.1% year-over-year, indicating a slowdown in growth. The uncertainty surrounding 2025, as mentioned by Charles Schwab, may further impact BCE's performance.

1.c. Company Highlights

2. BCE's Q3 2025 Earnings: A Strong Performance

BCE reported total revenue of $5.8 billion, up 1.3% year-over-year, driven by the acquisition of Ziply Fiber. Adjusted EBITDA increased by 1.5% to $2.65 billion, with a 10 basis point margin increase to 45.7%. The company's net earnings and statutory EPS were up significantly, largely due to a $5.2 billion gain from the sale of BCE's minority stake in MLSE and lower asset impairment charges. Actual EPS came out at $0.79, beating estimates of $0.647.

Publication Date: Nov -11

📋 Highlights

Segment Performance

The company's wireless service revenue declined modestly by 0.4%, while postpaid churn improved by 15 basis points. Internet revenue grew 2%, driven by fiber, and business markets showed strong demand for AI-powered solutions, with revenue increasing 34% year-over-year. BCE's new Bell CTS U.S. segment, which includes Ziply Fiber, reported total revenue of $160 million and EBITDA of $71 million.

Balance Sheet and Guidance

BCE's balance sheet remains healthy, with $3.6 billion of available liquidity and a sizable pension solvency surplus of $4.5 billion. The company's net debt leverage ratio was approximately 3.8x adjusted EBITDA. BCE reconfirmed its financial guidance targets for 2025, including organic EBITDA growth, free cash flow generation, and a path towards reducing its leverage ratio to 3.5x by the end of 2027 and 3.0x by 2030.

Valuation

With a P/E Ratio of 49.7 and an EV/EBITDA of 6.27, BCE's valuation appears to be reasonable, considering its growth prospects. The company's Dividend Yield of 8.93% is also attractive, providing a stable source of return for investors. Analysts estimate next year's revenue growth at 3.2%, which is in line with BCE's guidance.

Strategic Priorities

The company is focused on four strategic priorities: customer service, delivering the best fiber and wireless networks, leading with AI-powered solutions, and building a digital media and content powerhouse. These priorities are expected to drive growth across BCE's key business units and enhance efficiency.

Outlook

BCE's guidance for free cash flow growth remains unchanged, with a range of 6-11% for the full year. The company's $1.5 billion cost savings target is on track, with the company halfway through achieving this goal. With a strong performance in Q3 and a solid balance sheet, BCE is well-positioned to drive growth and create value for shareholders.

3. NewsRoom

Card image cap

Bigger. Better. Crave's Expansion Is Here: More Leading Content, One Powerful Service

Nov -26

Source:

Card image cap

Is BCE a Potential Bargain After Recent Strategic Partnerships and Price Drop?

Nov -19

Source:

Card image cap

BCE (TSX:BCE) Valuation Update After Strategic Plan and AI Segment Growth Announcements

Nov -19

Source:

Card image cap

Dividend 15 Split Corp. Monthly Dividend Declaration for Class A & Preferred Share

Nov -19

Source:

Card image cap

Dividend 15 Split Corp. II Monthly Dividend Declaration for Class A & Preferred Share

Nov -19

Source:

Card image cap

BCE to participate in the Desjardins Toronto Conference

Nov -19

Source:

Card image cap

BCE reports results of conversion of its series R preferred shares into series Q preferred shares

Nov -18

Source:

Card image cap

BCE Inc (BCE) Q3 2025 Earnings Call Highlights: Strategic Gains and AI Growth Propel Financial ...

Nov -15

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.10%)

6. Segments

Bell Cts

Expected Growth: 2.5%

The demand for cloud services and IT solutions is increasing, driving growth in this segment. As businesses continue to adopt digital technologies, Bell Cts is well-positioned to benefit from this trend, potentially leading to higher growth than the global average.

Bell Media

Expected Growth: 2.0%

The media landscape is challenging due to changing viewer habits and advertising trends. While Bell Media is a significant player in the Canadian media market, its growth will be moderate due to these challenges and the need to adapt to digital media trends.

Inter-Segment Eliminations

Expected Growth: 3.0%

The demand for wireless services continues to grow, driven by the increasing use of mobile data and the adoption of newer wireless technologies. Bell Wireless is expected to benefit from this trend, leading to higher growth compared to the global average.

7. Detailed Products

Wireline

Provides a range of wireline services including internet, TV, and home phone to residential and business customers

Wireless

Offers wireless voice and data services to individuals and businesses across Canada

Media

Operates a range of media assets including CTV, TSN, and RDS, offering a range of TV channels and content

Business Solutions

Provides a range of business solutions including IT consulting, cloud services, and cybersecurity

Nexxia

Offers a range of data centre and cloud services to businesses

Bell MTS

Provides a range of wireline and wireless services to customers in Manitoba

8. BCE Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

BCE Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

BCE Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base and lack of dependence on a single customer.

Bargaining Power Of Suppliers

BCE Inc. relies on a few large suppliers for network equipment and services, but the company's scale and negotiating power mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including significant capital expenditures and regulatory hurdles.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with several major players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.14%
Debt Cost 5.99%
Equity Weight 35.86%
Equity Cost 6.16%
WACC 6.05%
Leverage 178.84%

11. Quality Control: BCE Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.1

Growth: 2.6

Quality: 5.7

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Verizon

A-Score: 6.9/10

Value: 7.0

Growth: 3.1

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
BCE

A-Score: 5.5/10

Value: 5.9

Growth: 2.4

Quality: 4.3

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Charter

A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.59$

Current Price

32.59$

Potential

-0.00%

Expected Cash-Flows