TSX:QBR.A

Stock Analysis Report

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Market Cap

CA$8.0b

Last Updated

2021/08/03 23:31 UTC

Data Sources

Company Financials +

Executive Summary

Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Quebecor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QBR.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: QBR.A's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.09%

QBR.A

0.02%

CA Media

1.4%

CA Market


1 Year Return

5.8%

QBR.A

30.4%

CA Media

28.0%

CA Market

Return vs Industry: QBR.A underperformed the Canadian Media industry which returned 32.4% over the past year.

Return vs Market: QBR.A underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

QBR.AIndustryMarket
7 Day-0.09%0.02%1.4%
30 Day-0.8%-0.1%-0.2%
90 Day-3.2%0.2%2.8%
1 Year8.9%5.8%35.0%30.4%31.8%28.0%
3 Year26.4%19.2%48.7%34.2%33.0%20.1%
5 Year74.1%62.5%63.3%35.4%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is Quebecor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quebecor undervalued compared to its fair value and its price relative to the market?

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QBR.A (CA$32.9) is trading below our estimate of fair value (CA$61.39)

Significantly Below Fair Value: QBR.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QBR.A is poor value based on its PE Ratio (14.5x) compared to the Canadian Media industry average (10.1x).

PE vs Market: QBR.A is poor value based on its PE Ratio (14.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: QBR.A is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: QBR.A is overvalued based on its PB Ratio (6.7x) compared to the CA Media industry average (1.7x).


Future Growth

How is Quebecor forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QBR.A's forecast earnings growth (8.8% per year) is above the savings rate (1.5%).

Earnings vs Market: QBR.A's earnings (8.8% per year) are forecast to grow slower than the Canadian market (13.8% per year).

High Growth Earnings: QBR.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: QBR.A's revenue (2.2% per year) is forecast to grow slower than the Canadian market (5.2% per year).

High Growth Revenue: QBR.A's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QBR.A's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Quebecor performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QBR.A has high quality earnings.

Growing Profit Margin: QBR.A's current net profit margins (13%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: QBR.A's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: QBR.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QBR.A had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Media industry average (23.1%).


Return on Equity

High ROE: Whilst QBR.A's Return on Equity (43.8%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Quebecor's financial position?


Financial Position Analysis

Short Term Liabilities: QBR.A's short term assets (CA$2.2B) exceed its short term liabilities (CA$1.6B).

Long Term Liabilities: QBR.A's short term assets (CA$2.2B) do not cover its long term liabilities (CA$7.8B).


Debt to Equity History and Analysis

Debt Level: QBR.A's debt to equity ratio (496.6%) is considered high.

Reducing Debt: QBR.A's debt to equity ratio has reduced from 910.8% to 496.6% over the past 5 years.

Debt Coverage: QBR.A's debt is well covered by operating cash flow (21.2%).

Interest Coverage: QBR.A's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is Quebecor current dividend yield, its reliability and sustainability?

3.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QBR.A's dividend (3.34%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: QBR.A's dividend (3.34%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: QBR.A's dividends per share have been stable in the past 10 years.

Growing Dividend: QBR.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), QBR.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Pierre Péladeau (59 yo)

4.5yrs

Tenure

CA$1,042,230

Compensation

Mr. Pierre Karl Peladeau serves as President and CEO at Videotron Ltd. since June 2021.He has been the Chief Executive Officer and President of Quebecor Inc., and Quebecor Media Inc., since February 15, 20...


CEO Compensation Analysis

Compensation vs Market: Pierre's total compensation ($USD830.03K) is below average for companies of similar size in the Canadian market ($USD3.60M).

Compensation vs Earnings: Pierre's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: QBR.A's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: QBR.A's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Quebecor Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quebecor Inc.
  • Ticker: QBR.A
  • Exchange: TSX
  • Founded: 1965
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$7.995b
  • Shares outstanding: 244.17m
  • Website: https://www.quebecor.com

Number of Employees


Location

  • Quebecor Inc.
  • 612 rue Saint-Jacques
  • Montreal
  • Quebec
  • H3C 4M8
  • Canada

Listings


Biography

Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. Its Telecommunications segment offers television distribution, I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:31
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.