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Quebecor (TSE:QBR.B)
TSX:QBR.B
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Quebecor
(TSX:QBR.B)
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Rating:73Outperform
Price Target:
C$63.00
â–²(7.05% Upside)
Action:ReiteratedDate:03/01/26
The score is driven primarily by solid financial performance (strong profitability and cash generation offset by still-elevated leverage). Technicals add support via a clear uptrend, while valuation is reasonable with a moderate dividend. The latest earnings call was constructive on wireless growth and cash flow, tempered by competitive and media-sector pressures.
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 (QBR.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$13.25B
Dividend Yield2.69%
Average Volume (3M)836.01K
Price to Earnings (P/E)13.9
Beta (1Y)>-0.01
Revenue Growth-0.29%
EPS Growth15.30%
CountryCA
Employees10,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding151,308,070
10 Day Avg. Volume781,744
30 Day Avg. Volume836,007
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)4.52
Price to Sales (P/S)2.09
P/FCF Ratio8.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$59.37Price Target Upside0.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.2
Revenue Forecast (FY)C$5.75B
Quebecor Business Overview & Revenue Model
Company DescriptionQuebecor 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 MoneyQuebecor 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
Quebecor's earnings call highlighted strong wireless growth, network expansion, and improved financial metrics, indicating positive operational momentum. However, challenges in the media segment and lack of government support pose significant industry concerns. The sentiment is positive overall, driven by strong operational performance and strategic initiatives.Q3-2025 Updates
Positive Updates
Strong Wireless Service Revenue Growth
Quebecor reported its strongest quarterly wireless service revenue growth since the acquisition of Freedom Mobile, with a 6.4% increase in mobile service revenue. This was complemented by 114,000 net additions in the quarter and 323,000 new lines year-over-year.
Telecom Segment Performance
The telecom segment showed a 2% increase in service revenues for the second consecutive quarter. Mobile service revenue grew by $27 million in the quarter, and the consolidated mobile ARPU continued to improve, recording its best performance since the acquisition of Freedom Mobile.
Network Expansion and Improvements
Quebecor expanded its wireless coverage and services, including in Ontario and Quebec regions, and announced further expansion of Helix technology-based services in new territories, enhancing connectivity for more than 10,000 residents in the Haute-Mauricie region.
Media Segment EBITDA Growth
TVA Group generated EBITDA of $18.5 million in Q3 2025, an increase of $6 million compared to the same period in 2024, attributed to streamlining initiatives and favorable nonrecurring adjustments.
Improved Financial Metrics
Quebecor's EBITDA increased by $34 million or 6% to $628 million, and cash flows from operating activities rose by $36 million or 7% compared to the same quarter last year.
Successful Refinancing
Videotron issued $800 million of senior notes yielding 3.95%, with high investor demand and favorable conditions, including the lowest 7-year credit spread in the Canadian telecommunications sector.
Negative Updates
Challenges in Media Segment
The Quebec television industry is facing structural challenges, particularly due to declining advertising revenues and lack of foreign blockbusters in MELS' studios. There is a call for government action to support the industry.
Government Support Lacking
The federal budget ignored the television broadcasting crisis, with no tax credits for television journalism or tax incentives for advertising in Quebec and Canadian media. Increased funding for CBC/Radio-Canada without addressing unfair competition was also highlighted as a concern.
Aggressive Pricing Competition
There is aggressive pricing competition in Montreal and Quebec, especially in the combo plans market, which could impact future pricing strategies.
Company Guidance
In the third quarter of 2025, Quebecor Inc. reported a 1% increase in consolidated revenues to $1.4 billion and a 6% rise in EBITDA to $628 million. The company's telecom segment saw total revenue growth of 1%, driven by a 6.4% increase in mobile service revenue and a 1.1% increase in Internet service revenue. Quebecor added 114,000 new mobile lines in the quarter, reaching over 4.3 million active lines across its brands. The company's mobile ARPU showed improvement with a $0.35 increase compared to the previous quarter. In addition, Quebecor's Media segment saw a $6 million increase in EBITDA to $18.5 million, and its Sports and Entertainment segment recorded a 7% revenue increase to $68 million. The company maintained strong cash flows from operating activities, which grew by 7% to $582 million, and ended the quarter with a net debt-to-EBITDA ratio of 3.03x, the lowest among Canadian telecom competitors.Quebecor Financial Statement Overview
Summary
Solid profitability and generally strong cash generation (including a sharp free-cash-flow rebound in 2025) support the score. The main constraint is an elevated, though improving, leverage profile and some margin/cash-conversion volatility.Income Statement
Revenue has expanded meaningfully over the period (strong jump in 2023 and modest growth in 2024), and profitability is consistently solid with EBITDA margins holding around the low-40% range most years. Net profit margin improved into 2025, supporting stronger earnings. The main weakness is volatility/inconsistency in reported gross margin (notably the sharp drop in 2025 versus prior years), which clouds comparability and suggests either cost pressure or mix/reporting shifts.78
Positive
Balance Sheet
Leverage remains elevated for the business, with debt still several turns above equity, which increases financial risk and limits flexibility if operating conditions weaken. A positive offset is improving capitalization: equity has grown materially in recent years and debt-to-equity has been trending down from very high levels, while returns on equity remain strong. Overall, the balance sheet is improving, but still debt-heavy.56
Neutral
Cash Flow
Cash generation is generally strong, with operating cash flow rising over time and free cash flow rebounding sharply in 2025 after a softer 2024. Free cash flow is positive in most years (aside from 2021), supporting debt paydown capacity and shareholder returns. The key watch item is conversion variability—free cash flow as a share of net income and operating cash flow relative to earnings fluctuate meaningfully year to year.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.68B | 5.64B | 5.43B | 4.53B | 4.55B |
| Gross Profit | 1.54B | 3.12B | 2.99B | 2.63B | 2.66B |
| EBITDA | 2.39B | 2.35B | 2.18B | 1.89B | 1.89B |
| Net Income | 856.00M | 747.50M | 650.50M | 599.70M | 578.40M |
Balance Sheet | |||||
| Total Assets | 12.81B | 13.00B | 12.74B | 10.63B | 10.76B |
| Cash, Cash Equivalents and Short-Term Investments | 195.80M | 61.80M | 11.10M | 6.60M | 64.70M |
| Total Debt | 7.50B | 8.00B | 8.17B | 6.83B | 6.86B |
| Total Liabilities | 10.08B | 10.73B | 10.90B | 9.14B | 9.38B |
| Stockholders Equity | 2.63B | 2.16B | 1.73B | 1.36B | 1.26B |
Cash Flow | |||||
| Free Cash Flow | 1.42B | 820.60M | 898.90M | 653.10M | -265.40M |
| Operating Cash Flow | 2.06B | 1.72B | 1.46B | 1.26B | 1.18B |
| Investing Cash Flow | -675.80M | -921.90M | -2.68B | -631.30M | -1.54B |
| Financing Cash Flow | -1.29B | -712.20M | 1.18B | -812.60M | 281.90M |
Quebecor Technical Analysis
Positive
58.85
Price Trends
52.43
Positive
50.81
Positive
45.63
Positive
Market Momentum
2.04
Negative
69.80
Neutral
66.53
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 58.85 is above the 20-day moving average (MA) of 56.00, above the 50-day MA of 52.43, and above the 200-day MA of 45.63, indicating a bullish trend. The MACD of 2.04 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.53 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$28.81B | 4.04 | 43.97% | 3.94% | 2.75% | 342.54% | |
73 Outperform | C$13.25B | 13.93 | 34.72% | 2.69% | -0.29% | 15.30% | |
72 Outperform | C$3.03B | 7.99 | 10.26% | 5.69% | -2.22% | -2.36% | |
63 Neutral | C$33.03B | 4.71 | 31.99% | 7.42% | 0.11% | 7109.23% | |
62 Neutral | C$693.03M | 5.38 | 10.16% | 5.98% | -2.14% | 4.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $28.55B | 24.88 | 7.68% | 9.49% | 2.42% | 24.37% |
* Communication Services Sector Average
TSE:QBR.B
Quebecor
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23.62
67.25%
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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.