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Quebecor Inc Cl A MV (TSE:QBR.A)
TSX:QBR.A
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Quebecor Inc Cl A MV
(TSX:QBR.A)
Rating:79Outperform
Price Target:
C$43.00
▲( 13.16% Upside)
Quebecor Inc Cl A MV (QBR.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.72B
Dividend Yield3.44%
Average Volume (3M)420.00
Price to Earnings (P/E)11.5
Beta (1Y)0.36
Revenue Growth-1.11%
EPS Growth8.17%
CountryCA
Employees11,417
SectorCommunication Services
Sector Strength86
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.80
Shares Outstanding75,449,875
10 Day Avg. Volume433
30 Day Avg. Volume420
Financial Highlights & Ratios
PEG Ratio5.25
Price to Book (P/B)3.93
Price to Sales (P/S)0.00
P/FCF Ratio9.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Quebecor Inc Cl A MV 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, mobile and wireline 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. Quebecor Inc. was incorporated in 1965 and is headquartered in Montreal, Canada.
How the Company Makes MoneyQuebecor Inc generates revenue primarily through its telecommunications business, which is its largest segment. This includes subscription fees from cable TV, internet services, and mobile phone plans offered by Videotron. The company also earns money from its media segment by selling advertising space across its various newspapers, television networks, and online media platforms. Furthermore, Quebecor's sports and entertainment segment contributes to its revenue through event ticket sales, sponsorships, and broadcasting rights. Strategic partnerships and acquisitions have also played a role in expanding Quebecor's market reach and enhancing its revenue streams.
Quebecor Inc Cl A MV Financial Statement Overview
Summary
Quebecor Inc. demonstrates strong profitability and operational efficiency with high margins despite facing challenges with high leverage. The cash flow position is stable, supporting ongoing operations effectively, though there has been a slight recent decline in revenue.Income Statement
The TTM (Trailing-Twelve-Months) gross profit margin stands robust at 55.48%, indicating strong profitability. The net profit margin is healthy at 13.62%, reflecting effective cost management. However, revenue growth has slowed recently, with a 0.35% decline in the latest annual report, suggesting market saturation or competitive pressures. The EBIT and EBITDA margins are impressive at 25.54% and 41.54%, respectively, highlighting operational efficiency.85
Very Positive
Balance Sheet
The debt-to-equity ratio is high at 3.60, indicating significant leverage, which poses a potential risk in volatile markets. However, the return on equity is strong at 34.54%, showcasing effective utilization of shareholder funds. The equity ratio is moderate at 17.09%, suggesting reliance on both equity and debt financing.78
Positive
Cash Flow
The free cash flow growth rate is moderate at 9.12% annually, reflecting stable cash generation. The operating cash flow to net income ratio is 2.29, indicating robust cash generation relative to accounting profit. The free cash flow to net income ratio is 1.17, showing sufficient free cash flow to cover net income, despite high capital expenditures.77
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.62B | 5.64B | 5.43B | 4.53B | 4.55B | 4.32B | Gross Profit |
| 3.12B | 3.12B | 2.99B | 2.63B | 2.66B | 2.59B | EBIT |
| 1.44B | 1.42B | 1.33B | 1.16B | 1.19B | 1.15B | EBITDA |
| 2.33B | 2.35B | 2.18B | 1.89B | 1.89B | 1.92B | Net Income Common Stockholders |
| 765.00M | 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 | ||||
| 895.50M | 820.60M | 898.90M | 653.10M | -265.40M | 778.40M | Operating Cash Flow |
| 1.75B | 1.72B | 1.46B | 1.26B | 1.18B | 1.43B | Investing Cash Flow |
| -881.30M | -921.90M | -2.68B | -631.30M | -1.54B | -713.90M | Financing Cash Flow |
| -665.30M | -712.20M | 1.18B | -812.60M | 281.90M | -602.00M |
Quebecor Inc Cl A MV Technical Analysis
Positive
38.00
Price Trends
36.65
Positive
34.66
Positive
33.81
Positive
Market Momentum
0.48
Negative
54.28
Neutral
63.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QBR.A, the sentiment is Positive. The current price of 38 is above the 20-day moving average (MA) of 37.44, above the 50-day MA of 36.65, and above the 200-day MA of 33.81, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QBR.A.
Quebecor Inc Cl A MV 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 | C$8.72B | 11.54 | 37.46% | 3.44% | -1.11% | 8.17% | |
60 Neutral | $14.12B | 6.43 | -3.57% | 3.69% | 2.49% | -35.43% | |
| $19.82B | 78.40 | 2.83% | 13.36% | ― | ― | ||
| $14.37B | 10.99 | 16.65% | 5.52% | ― | ― | ||
| $24.40B | 28.40 | 7.51% | 7.12% | ― | ― | ||
75 Outperform | C$19.90B | 12.31 | 16.56% | 4.94% | 1.50% | 193.09% | |
| $2.09B | 8.78 | 10.84% | 5.24% | ― | ― |
* Communication Services Sector Average
Performance Comparison
TSE:QBR.A
Quebecor Inc Cl A MV
38.00
9.36
32.68%
BCE
BCE
21.53
-8.87
-29.18%
RCI
Rogers Communication
26.09
-11.62
-30.81%
TU
Telus
16.13
0.95
6.26%
TSE:RCI.A
Rogers Comm Cl A
39.90
-17.11
-30.01%
CGEAF
Cogeco Communications
49.68
11.13
28.87%
Quebecor Inc Cl A MV Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 4.63%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Quebecor presented a mixed performance in the first quarter of 2025. While they achieved significant success in increasing cash flow, reducing debt, and enhancing their telecom services, they faced challenges with declining revenues and negative trends in the Media segment. The company continues to optimize its operations and leverage its strong balance sheet, though external pressures in media and telecom pricing strategies are areas of concern.Q1-2025 Updates
Positive Updates
Increase in Cash Flow and EBITDA
Quebecor increased its cash flow from operating activities by $31 million or 8% to $420 million and its EBITDA, excluding stock-based compensation, by $13 million or 2% to $569 million.
Debt Reduction and Strong Balance Sheet
The company reduced its debt by $155 million, improving its net debt-to-EBITDA ratio to 3.26 times, the lowest leverage in the Canadian industry, with available liquidity of more than $1 billion.
Telecom Segment Success
54,000 net new lines added in the quarter. Adjusted EBITDA margins improved significantly from 48.8% to 50.1%. The churn rate became the lowest since the integration of Freedom Mobile.
Network and Service Enhancements
Freedom Mobile began deploying 3800 MHz spectrum across its 5G+ network, and the Roam Beyond plans were extended to over 100 global destinations.
Customer Satisfaction and Industry Recognition
Videotron was ranked the most respected telecommunication company in Quebec for the 19th time since 2006, as per the 2025 Leger Reputation survey.
Negative Updates
Decline in Revenues
Quebecor recorded revenues of $1.3 billion, a decrease of 1% from last year, mainly due to lower equipment revenues as they transitioned to renting Helix devices and decreased mobile device sales.
Media Segment Challenges
TVA Group reported a negative EBITDA of $20 million, primarily due to continued decline in advertising revenues and fewer major productions in MELS Studios.
Pressure on Wireline Services
A decrease in Telecom segment revenues by 2%, primarily due to lower equipment and mobile device sales.
Stock-Based Compensation Impact
EBITDA was down $10 million or 2% due to a $22.5 million increase in stock-based compensation charges across all segments.
Company Guidance
In the first quarter of 2025, Quebecor Inc. reported solid financial results, with key metrics showing significant improvements. Cash flow from operating activities increased by $31 million, or 8%, reaching $420 million. The company's EBITDA, excluding stock-based compensation, rose by $13 million, or 2%, to $569 million. Adjusted income from operating activities grew by $22 million, or 14%, to $185 million. Quebecor also reduced its debt by $155 million, improving its net debt-to-EBITDA ratio to 3.26, the lowest in the Canadian industry. The company invested over $146 million in capital expenditures to enhance its network and support growth projects. In the Telecom segment, Quebecor added 54,000 net new lines, with adjusted EBITDA margins increasing from 48.8% to 50.1%, despite a $7 million increase in stock-based compensation. The Media segment faced challenges, reporting a negative EBITDA of $20 million due to declining advertising revenues and fewer major productions. Overall, Quebecor remains focused on disciplined execution and strategic investments to maintain its competitive position.Quebecor Inc Cl A MV Corporate Events
Business Operations and StrategyFinancial Disclosures
Quebecor Inc. Reports Strong Q1 2025 Results Amidst Strategic Expansions
Positive
May 8, 2025
Quebecor Inc. reported strong financial results for the first quarter of 2025, with an 8.1% increase in cash flows from operating activities and a 13.5% rise in adjusted income from operating activities. Despite a slight decline in overall revenues, the company achieved significant growth in its mobile telephony service, adding 54,400 new connections. The company also reduced its consolidated net debt by over $155 million, achieving the lowest net debt leverage ratio among Canada’s major telecommunications providers. Key developments include the rollout of 5G+ technology by Freedom Mobile and the expansion of Videotron’s wireless service area, which are expected to enhance customer connectivity and service offerings.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Quebecor Inc. Reports Robust 2024 Financial Results and Strategic Expansion
Positive
Feb 27, 2025
Quebecor Inc. reported strong financial performance for 2024, with significant increases in cash flows, adjusted EBITDA, and revenues. The acquisition of Freedom Mobile and growth at Videotron contributed to a notable rise in mobile services revenue. The company also expanded its service areas and upgraded its technology, enhancing its market positioning and offering improved services to customers.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.