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Quebecor (TSE:QBR.B)
TSX:QBR.B
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Quebecor
(TSX:QBR.B)
Rating:79Outperform
Price Target:
C$47.00
▲(10.67% Upside)
Positive Factors
Financial Strategy
Leverage is expected to ease, which could lead to increased buybacks and compares well with Canadian peers.
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 6.2% year-over-year, exceeding analyst expectations.
Negative Factors
Cable Performance
Cable telecom service revenues fell 3% year-over-year, with internet posting a revenue decline as well.
Head Office Costs
Higher head office costs contributed to the decline in consolidated adjusted EBITDA.
Media Division
Quebecor's Media division experienced a significant decline in profitability, impacting overall results.
Quebecor (QBR.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$9.32B
Dividend Yield3.24%
Average Volume (3M)1.44M
Price to Earnings (P/E)12.2
Beta (1Y)0.22
Revenue Growth-1.02%
EPS Growth4.71%
CountryCA
Employees10,000
SectorCommunication Services
Sector Strength92
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding154,036,300
10 Day Avg. Volume2,637,275
30 Day Avg. Volume1,438,901
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 Cap1.84
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda7.33
Forecast
1Y Price Target
$43.58Price Target Upside2.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Quebecor Business Overview & Revenue Model
Company DescriptionQuebecor Inc. (QBR.B) is a leading Canadian telecommunications and media company based in Quebec. It operates primarily through two segments: Telecommunications and Media. The Telecommunications segment includes services such as cable television, internet access, and mobile telephony, primarily under the brand Videotron. The Media segment encompasses a wide range of operations, including publishing, broadcasting, and digital media, featuring well-known properties such as newspapers, magazines, and television channels. Quebecor is committed to providing innovative services and content that cater to the diverse needs of its customers.
How the Company Makes MoneyQuebecor generates revenue through multiple key streams. Its Telecommunications segment earns a significant portion of its income from subscription fees for cable and internet services, as well as mobile plans. Additionally, the company benefits from advertising revenue through its media properties, including newspapers and television networks, which attract substantial audiences. Quebecor leverages partnerships with content creators and advertisers to enhance its offerings and expand its market reach. The company also engages in e-commerce and digital services, contributing further to its revenue. Overall, Quebecor’s diversified portfolio allows it to capitalize on both traditional and digital media consumption trends.
Quebecor Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant improvements in cash flow, debt reduction, and mobile service revenue growth. However, challenges remain in the media segment and wireline services, with ongoing competitive pressure in Quebec affecting pricing strategies.Q2-2025 Updates
Positive Updates
Strong Cash Flow Growth
Cash flows from operating activities improved by $146 million or 37% to $538 million.
Reduction in Debt
Debt reduced by $192 million, improving the net debt-to-EBITDA ratio to 3.20x, the lowest in the Canadian industry.
Mobile Service Revenue Increase
Mobile service revenues increased by $26 million or 6% in the quarter, driven by the addition of 346,000 net new lines.
Expansion of Giga Internet Service
Major expansion in Quebec, adding high-speed access to more than 350,000 new potential households.
Sports and Entertainment Revenue Growth
Revenues increased 13% to $52 million, with EBITDA up to $5 million.
Negative Updates
Decline in Media Segment EBITDA
Group TVA's EBITDA decreased by $11 million compared to the same period in 2024, due to the absence of major foreign productions and declining advertising revenues.
Wireline Revenue Decline
Service revenues in wireline continued to decrease, although at a lower decline rate than in over a year.
Competitive Pressure in Quebec
Bell continues to be extremely aggressive on price in cable and Internet in Quebec, leading to challenges in maintaining pricing discipline.
Increased Stock-Based Compensation
EBITDA was negatively impacted by a $24.2 million increase in stock-based compensation.
Company Guidance
During the second quarter of 2025, Quebecor Inc. demonstrated strong financial performance, driven by solid operational outcomes and strategic decisions. The company's consolidated cash flows from operating activities increased by 37% to $538 million, while EBITDA, excluding stock-based compensation, rose by 1% to $605 million. Net operating results grew by 11% to $227 million, and Quebecor reduced its debt by $192 million, achieving a net debt-to-EBITDA ratio of 3.20x, the lowest in the Canadian telecom industry. The telecom segment maintained stable revenues at $1.2 billion, with mobile service revenues increasing by 6% due to the addition of 346,000 net new lines and effective pricing strategies. Despite a slight decline in wireline service revenues, new services like Freedom Home Internet and Fizz TV are expected to spur improvement. In the media segment, Group TVA's EBITDA decreased by $11 million to $2 million, primarily due to the absence of major production activities and declining advertising revenues. Quebecor's net income attributable to shareholders reached $218 million, or $0.95 per share, compared to $208 million, or $0.90 per share, in the previous year. The company continues to focus on investing in network improvements and maintaining a strong balance sheet without resorting to asset transactions.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| 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
Positive
42.47
Price Trends
39.95
Positive
38.54
Positive
35.36
Positive
Market Momentum
0.60
Negative
69.97
Neutral
77.55
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 42.47 is above the 20-day moving average (MA) of 39.62, above the 50-day MA of 39.95, and above the 200-day MA of 35.36, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.32B | 12.16 | 33.80% | 3.24% | -1.02% | 4.71% | |
60 Neutral | $44.05B | 4.50 | -12.81% | 4.08% | 1.86% | -43.08% | |
| ― | $23.32B | 84.75 | 2.91% | 9.85% | ― | ― | |
| ― | $19.34B | 17.29 | 13.68% | 4.01% | ― | ― | |
| ― | $25.04B | 35.96 | 6.08% | 7.02% | ― | ― | |
60 Neutral | C$569.21M | 6.40 | 10.54% | 6.16% | -0.87% | 9.49% | |
| ― | $1.95B | 8.24 | 10.54% | 5.65% | ― | ― |
* Communication Services Sector Average
Performance Comparison
TSE:QBR.B
Quebecor
42.47
10.52
32.95%
BCE
BCE
24.82
-7.01
-22.02%
RCI
Rogers Communication
35.70
-3.18
-8.18%
TU
Telus
16.44
1.53
10.26%
TSE:CGO
Cogeco Inc. SV
59.89
8.71
17.02%
CGEAF
Cogeco Communications
46.63
1.56
3.46%
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.