BCE Inc. (BCE.TO) stock analysis

In our weekly check, BCE Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3.

About BCE Inc.

BCE Inc. is a Communication Services company (Telecommunications Services) based in Canada, listed on TSX as BCE.TO.

What our checks show for BCE.TO

Red flags

• The gross margin fell by 9.8 points, to 59.2%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 15.4 points from today's 25.9%.
• The stock has fallen as much as 64% from a peak. Would you have held through that?

Warning signs

• Net debt is 2.8x a year of EBITDA (debt/equity 1.75). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.9 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 28.9% a year.
• Analysts expect only about 1.7% a year of growth in revenue.
• Revenue grew only 0.9% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 7.6%.

Strengths

• The net margin rose by 13.8 points over 5 years, to 25.9%.
• Earnings per share grew 31.3% a year over the last 3 years.
• Net profit grew 30.8% a year over the last 3 years.
• The company keeps 25.9% of its revenue as net profit.
• Free cash flow is 10.7% of revenue: cash for dividends, buybacks or growth.
• The price is 4.2 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-05

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Questions

What grade does BCE Inc. (BCE.TO) have?

In our weekly check, BCE Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BCE.TO stock?

This week's biggest flags for BCE Inc.: Gross margin falling, Margins expected to shrink, Deep past fall. In total 10 of 25 checks show a warning or a red flag.

What does BCE Inc. do?

BCE Inc. is a Communication Services company (Telecommunications Services) based in Canada, listed on TSX as BCE.TO.

When does BCE Inc. report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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