Quebecor (QBR.B) AI Stock Analysis

• Market Cap: C$9.04B
• Dividend Yield: 3.46%
• Average Volume (3M): 847.67K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.36
• Revenue Growth: -1.11%
• EPS Growth: 8.17%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 154,256,300
• 10 Day Avg. Volume: 856,756
• 30 Day Avg. Volume: 847,671
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$43.13
• Price Target Upside: 10.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: C$44.00 ▲(12.70% Upside)

Quebecor's strong financial performance and reasonable valuation are the primary strengths, supporting a positive outlook. Technical indicators suggest caution with potential bearish momentum. The earnings call provided a balanced view with strong Telecom performance offset by challenges in the Media segment. Overall, the company's growth initiatives and financial stability contribute to a favorable stock score.

Positive Factors

Dividend Increase

The dividend was raised 7.7% to $1.40.

Market Position

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 service revenues increased by 4.8%, slightly surpassing expectations.

Negative Factors

Cable Telecom Revenues

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 Performance

Internet products underperformed, with a net subscriber loss impacting overall revenues negatively.

Media 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 primarily generates revenue through its telecommunications segment, with Videotron providing significant earnings from subscription services like cable, internet, and mobile phone plans. Another substantial revenue stream comes from its media operations, where advertising sales and subscription fees for television broadcasting and magazine publications contribute to earnings. The company also benefits from its sports and entertainment division through ticket sales, sponsorship deals, and event hosting. Strategic partnerships, particularly in telecommunications infrastructure, and content distribution agreements further bolster Quebecor's financial performance.

Quebecor Financial Statement Overview

Summary

Quebecor's financial performance is strong with robust profitability, efficient cash flow management, and high returns on equity. However, the high leverage typical of the industry presents a potential risk.

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	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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QBR.B, the sentiment is Neutral. The current price of 39.04 is below the 20-day moving average (MA) of 40.09, below the 50-day MA of 39.98, and above the 200-day MA of 35.08, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	C$9.04B	11.85	37.69%	3.46%	-1.11%	8.17%
Sector *	56 Neutral	C$4.19B	4.84	-10.91%	5.40%	-6.66%	-29.93%
BCE	―	$21.77B	85.80	2.83%	10.37%	―	―
RCI	―	$18.38B	16.69	13.68%	4.25%	―	―
TU	―	$24.15B	34.41	6.08%	7.40%	―	―
CGO	69 Neutral	C$570.08M	6.41	10.54%	6.27%	-0.87%	9.49%
CGEAF	―	$1.93B	8.21	10.54%	5.80%	―	―