Quebecor Inc Cl A MV (QBR.A) AI Stock Analysis

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Quebecor Inc Cl A MV

(TSX:QBR.A)

Rating:70Outperform

Price Target:

C$45.00

▲(13.12% Upside)

Quebecor Inc. receives a solid score due to its strong financial performance and positive technical indicators. The company's effective cash flow management and reasonable valuation further support the score. However, challenges such as high leverage and revenue decline, along with media segment pressures, slightly temper the overall outlook.

Quebecor Inc Cl A MV (QBR.A) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$9.26B

Dividend Yield3.35%

Average Volume (3M)1.16K

Price to Earnings (P/E)11.9

Beta (1Y)0.09

Revenue Growth-1.02%

EPS Growth4.71%

CountryCA

Employees11,417

SectorCommunication Services

Sector Strength91

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.99

Shares Outstanding75,449,875

10 Day Avg. Volume1,526

30 Day Avg. Volume1,162

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$45.00

Price Target Upside13.12% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Quebecor Inc Cl A MV Business Overview & Revenue Model

Company DescriptionQuebecor Inc. Cl A MV (QBR.A) is a leading Canadian telecommunications and media company headquartered in Montreal, Quebec. The company operates in several sectors including telecommunications, media, and sports and entertainment. Its core products and services include cable television, internet access, and mobile phone services, as well as media content production and distribution through its various subsidiaries.

How the Company Makes MoneyQuebecor Inc. generates revenue primarily through its telecommunications sector, which includes Videotron, a major provider of cable television, internet, and mobile services in Quebec. The company earns money from subscription fees for these services. Additionally, Quebecor's media division, which includes television networks, newspapers, and digital media platforms, contributes to its revenue through advertising and content distribution fees. The company also benefits from strategic partnerships and investments in the sports and entertainment industries, which provide additional streams of income through event hosting, ticket sales, and related activities.

Quebecor Inc Cl A MV Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: 0.20%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

Quebecor reported strong operational and financial results, with significant growth in the telecom segment and effective debt reduction strategies. However, challenges remain in the media segment with declining advertising revenues and wireline service revenue pressures.

Q2-2025 Updates

Positive Updates

Strong Operational and Financial Results

Quebecor reported solid operational results with key performance indicators improving in Q2 2025. Cash flows from operating activities increased by $146 million or 37% to $538 million.

Telecom Segment Growth

Mobile service revenues increased by $26 million or 6%, driven by the addition of 346,000 net new lines over 12 months. The company also improved its mobile ARPU from $34.31 to $34.35 sequentially.

Debt Reduction and Strong Balance Sheet

Quebecor reduced its debt by $192 million, improving its net debt-to-EBITDA ratio to 3.20x, the lowest in the Canadian industry.

Media Segment Market Leadership

Group TVA remains #1 in market share in Quebec, despite challenges in the media landscape.

Negative Updates

Media Segment Challenges

EBITDA for Group TVA decreased by $11 million due to a one-time favorable adjustment in 2024 and the absence of major foreign production at MELS studio. The segment faces declining audiences and advertising revenues.

Wireline Revenue Decline

Wireline service revenues continued to decrease, though at a slower rate, with competition from aggressive pricing by competitors like Bell in Quebec.

Stock-Based Compensation Impact

EBITDA was down $20 million or 3% primarily due to a $24.2 million increase in stock-based compensation.

Company Guidance

During the second quarter of 2025, Quebecor Inc. reported strong financial performance with cash flows from operating activities increasing by $146 million or 37% to $538 million. EBITDA, excluding stock-based compensation, rose by $4 million or 1% to $605 million, while net operating results improved by $22 million or 11% to $227 million. The company reduced its debt by $192 million, achieving a net debt-to-EBITDA ratio of 3.20x, the lowest in the Canadian industry. Capital expenditures totaled over $152 million, supporting network improvements and growth projects. Additionally, mobile service revenues grew by $26 million or 6%, driven by the addition of 346,000 net new lines over the past year. Meanwhile, Quebecor's Media segment faced challenges, with Group TVA's EBITDA decreasing by $11 million due to external factors. Despite these challenges, Quebecor maintained strong liquidity with over $755 million available and continued to focus on its competitive positioning and operational efficiency.

Quebecor Inc Cl A MV Financial Statement Overview

Summary

Quebecor Inc Cl A MV demonstrates strong profitability and operational efficiency with impressive margins, though faces challenges with high leverage. The cash flow position is stable, supporting ongoing operations and capital expenditures effectively. Despite a slight recent decline in revenue, the company maintains a solid financial foundation in the telecommunications sector.

Income Statement

Very Positive

The TTM (Trailing-Twelve-Months) gross profit margin stands robust at 55.48%, indicating strong profitability. The net profit margin is healthy at 13.62%, reflecting effective cost management. However, revenue growth has slowed recently, with a 0.35% decline in the latest annual report, suggesting market saturation or competitive pressures. The EBIT and EBITDA margins are impressive at 25.54% and 41.54%, respectively, highlighting operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio is high at 3.60, indicating significant leverage, which poses a potential risk in volatile markets. However, the return on equity is strong at 34.54%, showcasing effective utilization of shareholder funds. The equity ratio is moderate at 17.09%, suggesting reliance on both equity and debt financing.

Cash Flow

Positive

The free cash flow growth rate is moderate at 9.12% annually, reflecting stable cash generation. The operating cash flow to net income ratio is 2.29, indicating robust cash generation relative to accounting profit. The free cash flow to net income ratio is 1.17, showing sufficient free cash flow to cover net income, despite high capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.64B	5.43B	4.53B	4.55B	4.32B
Gross Profit	3.12B	2.99B	2.63B	2.66B	2.59B
EBITDA	2.35B	2.18B	1.89B	1.89B	1.92B
Net Income	747.50M	650.50M	599.70M	578.40M	607.20M
Balance Sheet
Total Assets	13.00B	12.74B	10.63B	10.76B	9.86B
Cash, Cash Equivalents and Short-Term Investments	61.80M	11.10M	6.60M	64.70M	136.70M
Total Debt	8.00B	8.17B	6.83B	6.86B	6.10B
Total Liabilities	10.73B	10.90B	9.14B	9.38B	8.65B
Stockholders Equity	2.16B	1.73B	1.36B	1.26B	1.11B
Cash Flow
Free Cash Flow	820.60M	898.90M	653.10M	-265.40M	778.40M
Operating Cash Flow	1.72B	1.46B	1.26B	1.18B	1.43B
Investing Cash Flow	-921.90M	-2.68B	-631.30M	-1.54B	-713.90M
Financing Cash Flow	-712.20M	1.18B	-812.60M	281.90M	-602.00M

Quebecor Inc Cl A MV Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price39.78

Price Trends

50DMA

40.30

Negative

100DMA

38.67

Positive

200DMA

35.69

Positive

Market Momentum

MACD

0.09

Negative

RSI

49.33

Neutral

STOCH

57.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QBR.A, the sentiment is Neutral. The current price of 39.78 is above the 20-day moving average (MA) of 39.61, below the 50-day MA of 40.30, and above the 200-day MA of 35.69, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:QBR.A.

Quebecor Inc Cl A MV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.A	70 Outperform	C$9.26B	11.91	34.50%	3.35%	-1.02%	4.71%
Sector *	54 Neutral	C$4.31B	2.37	-16.12%	5.26%	-5.83%	-53.72%
BCE	―	$23.48B	86.76	2.91%	9.59%	―	―
RCI	―	$19.50B	17.48	13.68%	4.02%	―	―
TU	―	$25.29B	36.17	6.08%	6.95%	―	―
RCI.A	75 Outperform	C$26.98B	18.48	13.93%	3.81%	1.87%	71.51%
CGEAF	―	$1.94B	8.23	10.54%	5.74%	―	―

* Communication Services Sector Average

Performance Comparison

TSE:QBR.A

Quebecor Inc Cl A MV

39.78

9.44

31.11%

BCE

25.49

-6.56

-20.47%

RCI

Rogers Communication

35.64

-3.25

-8.36%

Telus

16.60

1.46

9.64%

TSE:RCI.A

Rogers Comm Cl A

52.44

-2.18

-3.99%

CGEAF

Cogeco Communications

45.87

0.02

0.04%

Quebecor Inc Cl A MV Corporate Events

Business Operations and StrategyFinancial Disclosures

Quebecor Inc. Strengthens Market Position with Robust Q2 2025 Results

Positive

Aug 7, 2025

Quebecor Inc. reported strong financial results for the second quarter of 2025, with a significant increase in cash flows from operating activities and adjusted income. The company continues to enhance its market position through strategic expansions, such as the rollout of 5G+ technology and the introduction of new products like the Roam Beyond Travel Data eSIM. These efforts have resulted in increased customer connections and a reduction in net debt, positioning Quebecor as a leader among Canadian telecommunications providers.

The most recent analyst rating on ($TSE:QBR.A) stock is a Buy with a C$36.00 price target. To see the full list of analyst forecasts on Quebecor Inc Cl A MV stock, see the TSE:QBR.A Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025