Quebecor (QBR.B) AI Stock Analysis

• Market Cap: $11.69B
• Dividend Yield: 2.69%
• Average Volume (3M): 836.01K
• Price to Earnings (P/E): 14.4
• Beta (1Y): -0.02
• Revenue Growth: -0.29%
• EPS Growth: 15.30%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.05
• Shares Outstanding: 152,831,970
• 10 Day Avg. Volume: 781,744
• 30 Day Avg. Volume: 836,007
• PEG Ratio: 0.75
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 6.26
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $53.37
• Price Target Upside: 2.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$57.00 ▲(9.87% Upside)

Quebecor's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust revenue growth and profitability, coupled with strategic initiatives in the telecom segment, position it well for future growth. While technical indicators show limited momentum, the stock's reasonable valuation and attractive dividend yield provide additional support.

Positive Factors

Revenue Growth

Strong revenue growth indicates Quebecor's expanding market presence and effective business strategies, supporting long-term financial health.

Wireless Service Expansion

Expanding wireless services strengthens Quebecor's competitive position and supports future growth in the telecommunications sector.

Cash Flow Strength

Strong cash flow growth enhances Quebecor's financial flexibility, enabling investment in growth initiatives and debt management.

Negative Factors

High Debt Levels

High leverage poses a risk to Quebecor's financial stability, potentially limiting its ability to invest in growth and manage economic downturns.

Media Segment Challenges

Structural challenges in the media segment could impact Quebecor's revenue diversification and profitability, necessitating strategic adjustments.

Aggressive Pricing Competition

Intense competition may pressure Quebecor's margins and require strategic pricing adjustments to maintain market share.

Quebecor Business Overview & Revenue Model

Company Description

Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. Its Telecommunications segment offers television distribution, Internet access, wireline and mobile telephony, business solutions, and over-the-top video services; and Helix, a technology platform that provides entertainment and home management with features, including voice remote, ultra-intelligent Wi-Fi, and support for home automation. The company's Media segment is involved in the operation of over-the-air television network and specialty television services; provides soundstage and equipment rental, and post-production services for the film and television industries; prints, publishes, and distributes daily newspapers; operates news and entertainment digital platforms and a music streaming service; publishes and distributes magazines; produces and distributes audiovisual content; and operates an out-of-home advertising business. Its Sports and Entertainment segment engages in the show production, sporting, and cultural events management; publishing and distribution of books; distribution and production of music; and operation of two Quebec Major Junior Hockey League teams. The company was incorporated in 1965 and is headquartered in Montreal, Canada.

How the Company Makes Money

Quebecor generates revenue primarily through its telecommunications services, which include subscriptions for cable television, internet, and mobile services via its Videotron subsidiary. Additional revenue streams come from advertising sales across its media platforms, including television, digital media, and print publications. Quebecor also profits from content production and distribution, leveraging its media assets to create and monetize original programming. Strategic partnerships and collaborations with other companies in the media and technology sectors further enhance its revenue potential, allowing for cross-promotional opportunities and expanded service offerings.

Quebecor Financial Statement Overview

Summary

Quebecor demonstrates strong profitability and cash flow management, with stable margins and impressive cash flow growth. However, the decline in revenue growth and high leverage are areas of concern that need monitoring. The company is well-positioned in terms of operational efficiency but should focus on reducing debt levels to mitigate financial risk.

Income Statement

Quebecor's income statement shows a solid gross profit margin of approximately 55% in TTM, indicating efficient cost management. However, the revenue growth rate has declined by 11.6% in TTM, which is a concern. The net profit margin is stable at around 13.6%, reflecting consistent profitability. EBIT and EBITDA margins are healthy, suggesting strong operational performance despite the revenue dip.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.60 in TTM, indicating significant leverage, which could pose a risk if interest rates rise. However, the return on equity is robust at 35.3%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 43.9% in TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. The free cash flow to net income ratio is over 50%, reflecting good cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.63B	5.64B	5.43B	4.53B	4.55B	4.32B
Gross Profit	2.73B	3.12B	2.99B	2.63B	2.66B	2.59B
EBITDA	2.33B	2.35B	2.18B	1.89B	1.89B	1.92B
Net Income	822.20M	747.50M	650.50M	599.70M	578.40M	607.20M
Balance Sheet
Total Assets	12.79B	13.00B	12.74B	10.63B	10.76B	9.86B
Cash, Cash Equivalents and Short-Term Investments	289.40M	61.80M	11.10M	6.60M	64.70M	136.70M
Total Debt	7.49B	8.00B	8.17B	6.83B	6.86B	6.10B
Total Liabilities	10.21B	10.73B	10.90B	9.14B	9.38B	8.65B
Stockholders Equity	2.48B	2.16B	1.73B	1.36B	1.26B	1.11B
Cash Flow
Free Cash Flow	1.36B	820.60M	898.90M	653.10M	-265.40M	778.40M
Operating Cash Flow	1.93B	1.72B	1.46B	1.26B	1.18B	1.43B
Investing Cash Flow	-581.90M	-921.90M	-2.68B	-631.30M	-1.54B	-713.90M
Financing Cash Flow	-1.15B	-712.20M	1.18B	-812.60M	281.90M	-602.00M

Quebecor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QBR.B, the sentiment is Positive. The current price of 51.88 is above the 20-day moving average (MA) of 51.55, above the 50-day MA of 50.62, and above the 200-day MA of 42.29, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 27.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QBR.B.

Quebecor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	$27.42B	4.04	47.62%	3.94%	2.75%	342.54%
QBR.B	75 Outperform	$11.69B	14.38	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	C$30.79B	4.97	31.28%	7.42%	0.11%	7109.23%
CCA	66 Neutral	C$2.87B	8.87	10.26%	5.69%	-2.22%	-2.36%
T	62 Neutral	C$28.82B	23.95	7.30%	9.49%	2.42%	24.37%
CGO	62 Neutral	C$631.02M	7.32	10.16%	5.98%	-2.14%	4.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%