BCE Inc. is one of the major Canadian telephone companies: Bell Canada Enterprises. It competes with Telus (TU), Rogers Communications (RCI), and many smaller companies such as Wind Mobile, Public Mobile and Mobilicity. The trend in the telephone industry is away from the traditional wired services and towards wireless services. The wireless services may be from an antenna network or via satellite. This trend means that the old wire networks will be used less each year and therefore will generate fewer profits. One of the strategies that the big telecoms use is to develop wireless business segments. They can either develop in house wireless capabilities and/or buy out competitors who have already developed wireless capabilities and market shares.
In terms of fundamentals, Bell Canada has good profitability figures. The operating margin (ttm) is 21.93% and the profit margin (ttm) is 11.87%. Management effectiveness is also good. The return on assets is 6.63% and the return on equity is 16.70%. Cash flow from operating activities is $4.79 billion. BCE also gives a dividend of $2.07 per share. Bell has raised the dividend rate 7 times over the last 5 years by a cumulative total of 57%.
Some of the mangers of CBE include Siim A. Vanaselja, Wade Osdterman and Kevin Crull.
Disclaimer: The information in this article is an insufficient basis for investment decisions. All decisions should be based on a thorough analysis of the investment.