Quebecor (QBR.B) AI Stock Analysis

• Market Cap: C$9.36B
• Dividend Yield: 4.69%
• Average Volume (3M): 837.32K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.37
• Revenue Growth: -1.11%
• EPS Growth: 8.17%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.80
• Shares Outstanding: 154,466,310
• 10 Day Avg. Volume: 638,896
• 30 Day Avg. Volume: 837,318
• PEG Ratio: 1.66
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$41.40
• Price Target Upside: 1.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: C$43.00 ▲(5.19%Upside)

Quebecor's overall score reflects strong financial health and effective management, particularly in its Telecom segment, which helps offset the challenges faced in the Media segment. The stock's valuation and technical indicators suggest moderate growth potential, making it an attractive investment for those seeking stability and income.

Positive Factors

Dividend Increase

The dividend was raised 7.7% to $1.40.

Market Share

The growing strength of Freedom, with notable market share gains and a clearer path towards a sizable market position nationally, strengthens QBR’s investment thesis as a reliable defensive play with an element of growth.

Wireless Performance

Wireless net additions reached 54.4K, surpassing expectations and marking a significant milestone in the wireless landscape.

Negative Factors

Cable Revenue Decline

Cable telecom service revenues fell 3.7% year-over-year in Q1/25 with internet posting a revenue decline of 2.5%, which is seen as a result of sustained pricing battles in the province of Quebec.

Internet Subscriber Loss

Internet products underperformed, with Internet subscriptions experiencing a net loss.

Media Division Profitability

Media division reported much lower profitability with adjusted EBITDA coming in significantly lower than estimates.

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 through several key streams. Its telecommunications sector, led by Videotron, is a primary source of income, deriving revenue from subscription-based services such as internet, television, and mobile phone plans. The media sector contributes through advertising revenue, subscriptions, and content distribution, leveraging its television channels and publishing assets. Additionally, the sports and entertainment division adds to its earnings through event hosting and related activities. Strategic partnerships and investments also play a role in enhancing Quebecor's financial performance, alongside its focus on expanding its telecommunications infrastructure and media offerings.

Quebecor Financial Statement Overview

Summary

Quebecor demonstrates strong financial performance with solid profitability, efficient cash flow management, and commendable returns on equity. While leverage is high, it is typical for the industry and manageable. The company's financial standing supports sustained stability and growth.

Income Statement

Quebecor exhibits robust profitability with a consistent gross profit margin around 55% and a net profit margin near 14% for TTM. The company demonstrates stable revenue growth with a TTM revenue growth rate of approximately 3.4%. EBIT and EBITDA margins remain strong at 25.5% and 41.5%, respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

Quebecor maintains a high debt-to-equity ratio of approximately 3.6, indicating significant leverage but manageable given the industry norms. The ROE is commendable at 34.5%, showcasing effective use of shareholders' equity to generate profits. The equity ratio stands at 17.1%, suggesting a lower proportion of assets financed by equity, which could be a risk if not monitored carefully.

Cash Flow

The company displays strong cash flow metrics with an operating cash flow to net income ratio of 2.29, indicating healthy cash generation relative to profits. The free cash flow to net income ratio is also solid at 1.17, highlighting efficient capital expenditure management. The free cash flow growth rate is a positive 9.1% TTM, reflecting improving cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.21B	5.64B	5.43B	4.53B	4.55B	4.32B
	Gross Profit
2.48B	3.12B	2.99B	2.63B	2.66B	2.59B
	EBIT
1.06B	1.42B	1.33B	1.16B	1.19B	1.15B
	EBITDA
1.76B	2.35B	2.18B	1.89B	1.89B	1.92B
	Net Income Common Stockholders
632.70M	747.50M	650.50M	599.70M	578.40M	607.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.10M	61.80M	11.10M	6.60M	64.70M	136.70M
	Total Assets
12.74B	13.00B	12.74B	10.63B	10.76B	9.86B
	Total Debt
8.17B	8.00B	8.17B	6.83B	6.86B	6.10B
	Net Debt
8.16B	7.94B	8.16B	6.82B	6.79B	5.96B
	Total Liabilities
10.90B	10.73B	10.90B	9.14B	9.38B	8.65B
	Stockholders Equity
1.73B	2.16B	1.73B	1.36B	1.26B	1.11B
Cash Flow		Free Cash Flow
246.10M	820.60M	898.90M	653.10M	-265.40M	778.40M
	Operating Cash Flow
1.23B	1.72B	1.46B	1.26B	1.18B	1.43B
	Investing Cash Flow
-778.60M	-921.90M	-2.68B	-631.30M	-1.54B	-713.90M
	Financing Cash Flow
-455.30M	-712.20M	1.18B	-812.60M	281.90M	-602.00M

Quebecor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 40.88 is above the 20-day moving average (MA) of 39.42, above the 50-day MA of 37.75, and above the 200-day MA of 34.12, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 70.63 is Negative, neither overbought nor oversold. The STOCH value of 69.57 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
QBR.B	78 Outperform	C$9.36B	12.41	37.69%	4.69%	-1.11%	8.17%
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
BCE		$20.03B	79.06	2.83%	5.85%	―	―
RCI		$15.21B	11.64	16.65%	5.19%	―	―
TU		$24.29B	28.20	7.51%	7.46%	―	―
CGO	74 Outperform	C$626.30M	7.17	10.38%	5.68%	0.06%	115.11%
CGEAF		$2.11B	8.85	10.84%	5.33%	―	―