# Bce (BCE.TO)

Canonical: https://gigainvestors.com/s/BCE.TO

Analysis as of: 2026-10-16T07:34:49.627Z. Financial observations: FY1996–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 28.58 per share; close as of 2026-10-15.

Estimated value: low CAD 26.15 per share, central CAD 30.01 per share, high CAD 34.87 per share. Buy at or below the central value CAD 30.01 per share. Valuation as of 2026-10-16T07:34:49.627Z; scenarios are not confidence intervals.

Expected annual return: 10.4% at the stated quote. About 10.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.24×

- FY2018: 0.24×

- FY2019: 0.24×

- FY2020: 0.23×

- FY2021: 0.23×

- FY2022: 0.23×

- FY2023: 0.22×

- FY2024: 0.23×

- FY2025: 0.22×

- LTM to Jun 2026: 0.22×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.2%

- ROIC, second-lowest year: 8.8%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 68.8%

- Recent gross margin (lower of latest and 3-year median): 68.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.9%

- ROIC including acquisitions, ten-year median: 6.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.3%

- FY2017: 12.8%

- FY2018: 12.3%

- FY2019: 11.4%

- FY2020: 10.9%

- FY2021: 9.4%

- FY2022: 9.6%

- FY2023: 8.8%

- FY2024: 8.0%

- FY2025: 9.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 14B

- Net income, five-year total: CAD 15B

- Return on incremental invested capital: 40.3%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

- Working capital / revenue, final three-year average: 9.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.35×

- FY2022: 0.94×

- FY2023: 0.97×

- FY2024: 2.15×

- FY2025: 1.21×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.8% vs 8.8%

- Per-share earnings: 3.32 to 2.48 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: CAD -20B

- Cumulative retained earnings: CAD 2.4B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.6%

- Per-share value change: CAD -0.84

- Per-share value, starting three-year median: CAD 3.32

- Per-share value, ending three-year median: CAD 2.48

- Buybacks concentrated in cheaper years (correlation): -0.32

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 12B

- Cumulative net income, 10 years: CAD 30B

- ROIC, first three-year median: 12.8%

- ROIC, last three-year median: 8.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 3.46

- FY2017: CAD 3.32

- FY2018: CAD 3.26

- FY2019: CAD 3.53

- FY2020: CAD 2.91

- FY2021: CAD 3.12

- FY2022: CAD 3.14

- FY2023: CAD 2.48

- FY2024: CAD 0.38

- FY2025: CAD 6.96

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.2%

- FY2017: -8.0%

- FY2018: -7.8%

- FY2019: -7.9%

- FY2020: -8.4%

- FY2021: -7.7%

- FY2022: -7.9%

- FY2023: -7.9%

- FY2024: -9.0%

- FY2025: -0.7%

## Holders

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 59% since Mar 2022 · sales +1.3%

Story as of 2026-10-16T10:00:02.696Z; price observation 2026-10-15.

Price needs cash profits to grow 0.5% a year for ten years

- 2025-08-01: BCE completes acquisition of Ziply Fiber, accelerating its fibre growth strategy ([finance.yahoo.com](https://finance.yahoo.com/news/bce-completes-acquisition-ziply-fiber-133700830.html))

- 2026-05-07: BCE Beats Estimates As AI Revenue Target Points To C$2 Billion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/bce-beats-estimates-ai-revenue-182257521.html))

- 2026-08-12: BCE Q2 Beat Puts a $1.3 Billion AI Spending Plan to the 2027 Test ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/bce-q2-beat-puts-1-135800143.html))

### Sales · FY2025–2026

sales +1.3%; source https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm; observed 2026-03-06.

- FY2017: CAD 23B 

- FY2018: CAD 23B 

- FY2019: CAD 24B 

- FY2020: CAD 23B 

- FY2021: CAD 23B 

- FY2022: CAD 24B 

- FY2023: CAD 25B 

- FY2024: CAD 24B 

- FY2025: CAD 24B 

- FY2026: CAD 25B 

### Gross margin · FY2025

gross margin 68.4%; source https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm; observed 2026-03-06.

- FY2016: 69.1% 

- FY2017: 69.2% 

- FY2018: 68.7% 

- FY2019: 69.1% 

- FY2020: 83.7% 

- FY2021: 68.9% 

- FY2022: 68.4% 

- FY2023: 67.9% 

- FY2024: 68.4% 

- FY2025: 68.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are CAD 24.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm (filed 2026-03-06); FY2025: revenue 24468000000; grossProfit 16748000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BCE.TO: BCE Inc., a communications company, provides wireless, wireline, internet, streaming services, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Communication and Technology Services Canada, Bell Communication and Technology Services United States, and Bell Media. The Bell Communication and Technology Services Canada segment provides wireless products and services, including mobile data and voice plans, streaming services, and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and AI-driven and business solutions, as well as voice, and other communication services and products, satellite TV and connectivity services for residential, small and medium-sized business, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services to resellers and other carriers. The Bell Communication and Technology Services United States segment provides wireline communication products and services comprising data, including broadband Internet, commercial ethernet, dedicated Internet-non-switched access, and other data transport networking options; and voice, including traditional and voice over Internet protocol voice services, such as local, long distance, and unified communications as a service and video products to residential, business, and wholesale customers. The Bell Media segment provides a portfolio of video, audio, out-of-home advertising, and digital media services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

### Why customers stay

Margins ranged from 67.9% to 68.4% during 2023–25; it earns 10.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2023: grossProfit / revenue = 67.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2024: grossProfit / revenue = 68.4%.

- Source: https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm (filed 2026-03-06); FY2025: grossProfit / revenue = 68.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); 10-year return on capital observations [[2016,0.13305378859172592],[2017,0.12783115026377953],[2018,0.12280171758512212],[2019,0.1143233821265521],[2020,0.10906030240943916],[2021,0.0936726715929306],[2022,0.09562045908738542],[2023,0.08813488389123007],[2024,0.07953332451149045],[2025,0.09063598642731116]]; median 0.10234038074841229. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 68% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm (filed 2026-03-06); Gross margin observations: [[2021,0.6893684165636061],[2022,0.6839166046165301],[2023,0.6787581566894987]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 182 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2016: growth capex 207708879.53075886; upkeep 3564291120.469241; owner earnings 2974708879.530759. Growth capex / owner earnings = 0.06982494352977613.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2017: growth capex 190000000; upkeep 3844000000; owner earnings 2994000000. Growth capex / owner earnings = 0.06346025384101536.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2018: growth capex 13000000; upkeep 4014000000; owner earnings 2929000000. Growth capex / owner earnings = 0.004438374871969956.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2019: growth capex 0; upkeep 3988000000; owner earnings 3547000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2020: growth capex 0; upkeep 4288000000; owner earnings 2599200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2021: growth capex 643276876.0702801; upkeep 6275723123.92972; owner earnings 1000476876.0702801. Growth capex / owner earnings = 0.6429702589398899.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2022: growth capex 413000000; upkeep 4723000000; owner earnings 2682000000. Growth capex / owner earnings = 0.1539895600298285.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2023: growth capex 0; upkeep 4764000000; owner earnings 2202200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2024: growth capex 0; upkeep 4428000000; owner earnings 739400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm (filed 2026-03-06); FY2025: growth capex 0; upkeep 3700000000; owner earnings 7811400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); Dividend observations: [[2016,2431000000],[2017,2639000000],[2018,2828000000],[2019,2966000000],[2020,3107000000],[2021,3257000000],[2022,3448000000],[2023,3668000000],[2024,3800000000],[2025,2177000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm (filed 2026-03-06); FY2025: cash repurchases 182000000 CAD.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BCE.TO SharesStats.PercentInsiders = 0.032 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 0.5% yearly over ten years; actual growth was 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); Ten-year compound average after fade. Initial solved rate -0.00574786008323952. Price 28.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.8179488606674004 → FY2025 8.412280805668065. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 60.94 per share

- 2016-11: CAD 57.89 per share

- 2016-12: CAD 58.03 per share

- 2017-01: CAD 58.66 per share

- 2017-02: CAD 57.94 per share

- 2017-03: CAD 58.88 per share

- 2017-04: CAD 62.15 per share

- 2017-05: CAD 61.21 per share

- 2017-06: CAD 58.40 per share

- 2017-07: CAD 58.52 per share

- 2017-08: CAD 59.44 per share

- 2017-09: CAD 58.46 per share

- 2017-10: CAD 59.57 per share

- 2017-11: CAD 61.74 per share

- 2017-12: CAD 60.38 per share

- 2018-01: CAD 57.52 per share

- 2018-02: CAD 56.00 per share

- 2018-03: CAD 55.44 per share

- 2018-04: CAD 54.49 per share

- 2018-05: CAD 54.01 per share

- 2018-06: CAD 53.24 per share

- 2018-07: CAD 55.28 per share

- 2018-08: CAD 53.23 per share

- 2018-09: CAD 52.33 per share

- 2018-10: CAD 50.95 per share

- 2018-11: CAD 56.95 per share

- 2018-12: CAD 53.93 per share

- 2019-01: CAD 57.13 per share

- 2019-02: CAD 58.52 per share

- 2019-03: CAD 59.34 per share

- 2019-04: CAD 59.94 per share

- 2019-05: CAD 60.86 per share

- 2019-06: CAD 59.58 per share

- 2019-07: CAD 59.64 per share

- 2019-08: CAD 63.00 per share

- 2019-09: CAD 64.08 per share

- 2019-10: CAD 62.48 per share

- 2019-11: CAD 63.94 per share

- 2019-12: CAD 60.16 per share

- 2020-01: CAD 62.36 per share

- 2020-02: CAD 58.95 per share

- 2020-03: CAD 57.73 per share

- 2020-04: CAD 56.29 per share

- 2020-05: CAD 57.23 per share

- 2020-06: CAD 56.62 per share

- 2020-07: CAD 56.16 per share

- 2020-08: CAD 56.06 per share

- 2020-09: CAD 55.22 per share

- 2020-10: CAD 53.54 per share

- 2020-11: CAD 56.30 per share

- 2020-12: CAD 54.43 per share

- 2021-01: CAD 54.24 per share

- 2021-02: CAD 54.43 per share

- 2021-03: CAD 56.73 per share

- 2021-04: CAD 58.10 per share

- 2021-05: CAD 59.82 per share

- 2021-06: CAD 61.13 per share

- 2021-07: CAD 62.27 per share

- 2021-08: CAD 65.80 per share

- 2021-09: CAD 63.45 per share

- 2021-10: CAD 63.71 per share

- 2021-11: CAD 64.29 per share

- 2021-12: CAD 65.81 per share

- 2022-01: CAD 66.40 per share

- 2022-02: CAD 66.57 per share

- 2022-03: CAD 69.30 per share

- 2022-04: CAD 68.30 per share

- 2022-05: CAD 68.91 per share

- 2022-06: CAD 63.27 per share

- 2022-07: CAD 64.70 per share

- 2022-08: CAD 63.38 per share

- 2022-09: CAD 57.92 per share

- 2022-10: CAD 61.45 per share

- 2022-11: CAD 64.06 per share

- 2022-12: CAD 59.49 per share

- 2023-01: CAD 62.90 per share

- 2023-02: CAD 60.37 per share

- 2023-03: CAD 60.54 per share

- 2023-04: CAD 65.12 per share

- 2023-05: CAD 61.24 per share

- 2023-06: CAD 60.40 per share

- 2023-07: CAD 56.96 per share

- 2023-08: CAD 57.24 per share

- 2023-09: CAD 51.85 per share

- 2023-10: CAD 51.48 per share

- 2023-11: CAD 53.43 per share

- 2023-12: CAD 52.17 per share

- 2024-01: CAD 54.25 per share

- 2024-02: CAD 50.36 per share

- 2024-03: CAD 46.03 per share

- 2024-04: CAD 45.23 per share

- 2024-05: CAD 46.62 per share

- 2024-06: CAD 44.31 per share

- 2024-07: CAD 46.57 per share

- 2024-08: CAD 47.21 per share

- 2024-09: CAD 47.02 per share

- 2024-10: CAD 44.89 per share

- 2024-11: CAD 37.90 per share

- 2024-12: CAD 33.32 per share

- 2025-01: CAD 34.61 per share

- 2025-02: CAD 33.42 per share

- 2025-03: CAD 33.03 per share

- 2025-04: CAD 30.64 per share

- 2025-05: CAD 29.90 per share

- 2025-06: CAD 30.20 per share

- 2025-07: CAD 32.32 per share

- 2025-08: CAD 34.27 per share

- 2025-09: CAD 32.52 per share

- 2025-10: CAD 32.06 per share

- 2025-11: CAD 32.92 per share

- 2025-12: CAD 32.74 per share

- 2026-01: CAD 35.20 per share

- 2026-02: CAD 35.85 per share

- 2026-03: CAD 35.10 per share

- 2026-04: CAD 32.28 per share

- 2026-05: CAD 34.78 per share

- 2026-06: CAD 30.55 per share

- 2026-07: CAD 30.41 per share

- 2026-08: CAD 32.68 per share

- 2026-09: CAD 28.97 per share

- 2026-10: CAD 27.67 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 30.80 per share, central CAD 34.98 per share, high CAD 40.55 per share

- FY2017: low CAD 31.09 per share, central CAD 35.35 per share, high CAD 41.02 per share

- FY2018: low CAD 36.21 per share, central CAD 41.90 per share, high CAD 48.71 per share

- FY2019: low CAD 38.43 per share, central CAD 44.49 per share, high CAD 51.71 per share

- FY2020: low CAD 36.38 per share, central CAD 41.40 per share, high CAD 48.08 per share

- FY2021: low CAD 35.17 per share, central CAD 40.02 per share, high CAD 46.47 per share

- FY2022: low CAD 32.90 per share, central CAD 37.44 per share, high CAD 43.48 per share

- FY2023: low CAD 34.20 per share, central CAD 38.72 per share, high CAD 44.74 per share

- FY2024: low CAD 27.73 per share, central CAD 31.33 per share, high CAD 36.12 per share

- FY2025: low CAD 25.92 per share, central CAD 29.74 per share, high CAD 34.55 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:37.790Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/718940/000119312526095004/d86374d40f.htm); period 2025-12-31, filed 2026-03-06.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.