Quebecor Inc Cl A MV (QBR.A) AI Stock Analysis

Quebecor Inc Cl A MV

(TSX:QBR.A)

Select Model

Rating:78Outperform

Price Target:CAD 79.00▲(17.21% Upside)

Action:reiterated

Date:08/10/26

The score is driven primarily by strong financial performance and a positive earnings call, especially improving cash flow, earnings, and telecom momentum. Valuation is fair rather than cheap, while technicals are supportive but not especially strong, and leverage remains the main financial risk.

Positive Factors

Free Cash Flow GenerationThe company has rebuilt durable cash generation: TTM operating cash flow and a sharp FCF rebound (FCF ~75% of net income TTM) convert earnings into real liquidity. That supports sustained deleveraging, disciplined capex, buybacks and a raised dividend over the medium term.

Negative Factors

Elevated LeverageLeverage, while improved, remains material for a mature telecom with modest top-line growth. Higher debt ratios limit financial flexibility for large-scale investment or shocks, increase interest expense sensitivity and constrain how aggressively management can fund M&A or accelerate network rollouts.

Quebecor Inc Cl A MV (QBR.A) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 15.09B
Dividend Yield: 2.43%
Average Volume (3M): 458
Price to Earnings (P/E): 16.0
Beta (1Y): -0.15
Revenue Growth: 3.12%
EPS Growth: 24.49%
Country: Canada
Employees: 11,000
Sector: Communication Services
Sector Strength: 60
Industry: Telecommunications Services

Quebecor Inc Cl A MV Business Overview & Revenue Model

Company Description

Founded in 1965 and headquartered in Montreal, Canada, Quebecor Inc. operates across the telecommunications, media, and sports and entertainment sectors via its various subsidiaries. Its Telecommunications division provides a comprehensive suite of s...

How the Company Makes Money

Quebecor primarily makes money from recurring subscription and usage-based fees from its telecommunications operations. The largest revenue drivers are typically: (1) Wireless services: monthly service plans, data overage/usage, device financing/hand...

Quebecor Inc Cl A MV Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:3.09%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call presented predominantly positive operational and financial momentum: record Telecom performance, accelerating wireless subscriber additions and ARPU growth, double-digit improvement in free cash flow, a stronger balance sheet and an increased shareholder return package (dividend raise and renewed NCIB). Strategic steps such as the majority investment in Etiya signal potential medium-term efficiency and revenue upside from BSS and AI-driven improvements. Offsetting items include elevated stock-based compensation suppressing reported EBITDA, persistent structural pressures in the Media segment (including unresolved NHL rights and severance costs), isolated Sports & Entertainment weakness, and the need to continue network work in Western Canada which entails additional investment and execution risk. On balance, the highlights materially outweigh the lowlights, indicating a confident but pragmatic outlook.

Positive Updates

Free Cash Flow Growth

Free cash flow increased by $44 million or 12% year-over-year to $419 million in Q2 2026, supporting continued investment, buybacks and a dividend increase.

Negative Updates

Stock-Based Compensation Drag on EBITDA

Share-based compensation increased by approximately $40 million in the quarter and by $87 million year-to-date, materially holding back reported EBITDA growth (management states EBITDA ex-SBC would have been significantly higher).

Company Guidance

Management reiterated 2026 guidance that free cash flow should be broadly stable — or slightly better — year‑over‑year, pointing to Q2 free cash flow of $419M (up 12% y/y) and healthy cash from operations of $570M in the quarter; they said CapEx will remain in line with prior guidance (Q2 CapEx ~ $174M; Telecom CapEx ex‑spectrum +$18M or +12% with slightly heavier Q2 and Q4 phasing). The company will continue to prioritize deleveraging and disciplined capital allocation (net debt/EBITDA 2.87x, available liquidity $926M, USD 1.0B commercial paper program now operational), while returning capital via a renewed NCIB (3.1M Class B shares repurchased YTD for $185M, nearly $100M repurchased in the quarter) and a raised quarterly dividend to $0.45/share (up 12.5%).

Quebecor Inc Cl A MV Financial Statement Overview

Summary

Strong earnings growth, improving margins, and robust cash generation support a high financial score, but elevated leverage keeps it below the top tier.

Income Statement

88Very Positive

Balance Sheet

63Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.79B	5.68B	5.64B	5.43B	4.53B	4.55B
Gross Profit	1.83B	1.54B	3.12B	2.99B	2.63B	2.66B
EBITDA	2.44B	2.39B	2.35B	2.18B	1.89B	1.89B
Net Income	943.90M	856.00M	747.50M	650.50M	599.70M	578.40M
Balance Sheet
Total Assets	12.95B	12.81B	13.00B	12.74B	10.63B	10.76B
Cash, Cash Equivalents and Short-Term Investments	124.70M	195.80M	61.80M	11.10M	6.60M	64.70M
Total Debt	7.17B	7.20B	8.00B	8.17B	6.83B	6.86B
Total Liabilities	9.97B	10.08B	10.73B	10.90B	9.14B	9.38B
Stockholders Equity	2.74B	2.63B	2.16B	1.73B	1.36B	1.26B
Cash Flow
Free Cash Flow	1.57B	1.42B	820.60M	898.90M	653.10M	-265.40M
Operating Cash Flow	2.09B	2.06B	1.72B	1.46B	1.26B	1.18B
Investing Cash Flow	-776.00M	-675.80M	-921.90M	-2.68B	-631.30M	-1.54B
Financing Cash Flow	-1.26B	-1.29B	-712.20M	1.18B	-812.60M	281.90M

Quebecor Inc Cl A MV Technical Analysis

Technical Analysis SentimentPositive

Last Price67.40

Price Trends

50DMA63.61Positive

100DMA65.28Positive

200DMA60.91Positive

Market Momentum

MACD0.74Negative

RSI59.69Neutral

STOCH60.83Neutral

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 67.40 is above the 20-day moving average (MA) of 64.63, above the 50-day MA of 63.61, and above the 200-day MA of 60.91, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 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

TSE:QBR.A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:QBR.A	78Outperform	CAD 14.92B	16.03	35.86%	2.43%	3.12%	24.49%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TSE:BCE	55Neutral	CAD 26.57B	4.22	27.73%	6.14%	1.59%	1374.54%
TSE:CCA	55Neutral	CAD 2.25B	-2.02	-43.35%	7.43%	-4.04%	-443.15%
TSE:RCI.B	53Neutral	CAD 24.66B	26.14	4.97%	4.40%	8.04%	-86.72%
TSE:CGO	51Neutral	CAD 446.36M	-1.29	-49.57%	8.53%	-4.03%	-502.29%
TSE:T	46Neutral	CAD 19.66B	-21.59	-6.56%	11.66%	-1.06%	-188.85%

* Communication Services Sector Average

Performance Comparison

TSE:QBR.A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:QBR.A	Quebecor Inc Cl A MV	67.49	24.59	57.32%
TSE:BCE	Bce Inc	28.93	-0.91	-3.03%
TSE:RCI.B	Rogers Communication	46.89	-4.78	-9.25%
TSE:T	Telus Corp	12.63	-6.18	-32.85%
TSE:CGO	Cogeco Inc. SV	46.39	-9.40	-16.85%
TSE:CCA	Cogeco Communications	52.58	-8.00	-13.20%

Quebecor Inc Cl A MV Corporate Events

Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions

Quebecor lifts profit, dividend and BSS push on strong Q2 telecom growth

Positive

Aug 6, 2026

Quebecor reported a strong second quarter of 2026, with free cash flow up 11.7% to $418.7 million, revenue rising 4.3% to $1.44 billion and adjusted EBITDA increasing 3.7%, or 9.8% excluding stock-based compensation. Telecom remained the growth engin...

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.

Date of analysis: Aug 10, 2026

Quebecor Inc Cl A MV AI Stock Analysis