TSX:QBR.B

Stock Analysis Report

Executive Summary

Quebecor Inc., through its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada.


Snowflake Analysis

Acceptable track record second-rate 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.B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

QBR.B

1.0%

CA Media

2.1%

CA Market


1 Year Return

-6.4%

QBR.B

-9.9%

CA Media

-21.2%

CA Market

Return vs Industry: QBR.B exceeded the Canadian Media industry which returned -15% over the past year.

Return vs Market: QBR.B exceeded the Canadian Market which returned -22.9% over the past year.


Shareholder returns

QBR.BIndustryMarket
7 Day-0.1%1.0%2.1%
30 Day-0.07%-6.4%-13.8%
90 Day-7.1%-14.0%-21.9%
1 Year-4.8%-6.4%-6.9%-9.9%-18.6%-21.2%
3 Year50.9%46.5%6.7%-5.4%-11.0%-19.3%
5 Year89.4%82.2%15.4%-7.0%1.6%-13.6%

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?

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QBR.B (CA$30.41) is trading below our estimate of fair value (CA$40.42)

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


Price To Earnings Ratio

PE vs Industry: QBR.B is poor value based on its PE Ratio (14.2x) compared to the Media industry average (6.8x).

PE vs Market: QBR.B is poor value based on its PE Ratio (14.2x) compared to the Canadian market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: QBR.B is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: QBR.B is overvalued based on its PB Ratio (8.1x) compared to the CA Media industry average (0.6x).


Next Steps

Future Growth

How is Quebecor forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QBR.B's forecast earnings growth (4.7% per year) is above the savings rate (1.4%).

Earnings vs Market: QBR.B's earnings (4.7% per year) are forecast to grow slower than the Canadian market (5.2% per year).

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

Revenue vs Market: QBR.B's revenue (1% per year) is forecast to grow slower than the Canadian market (3.3% per year).

High Growth Revenue: QBR.B's revenue (1% 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.B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quebecor performed over the past 5 years?

39.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QBR.B has high quality earnings.

Growing Profit Margin: QBR.B's current net profit margins (12.9%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: QBR.B's earnings have grown significantly by 39.3% per year over the past 5 years.

Accelerating Growth: QBR.B's earnings growth over the past year (38.9%) is below its 5-year average (39.3% per year).

Earnings vs Industry: QBR.B earnings growth over the past year (38.9%) underperformed the Media industry 81.7%.


Return on Equity

High ROE: Whilst QBR.B's Return on Equity (52.31%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Quebecor's financial position?


Financial Position Analysis

Short Term Liabilities: QBR.B's short term assets (CA$1.1B) do not cover its short term liabilities (CA$1.3B).

Long Term Liabilities: QBR.B's short term assets (CA$1.1B) do not cover its long term liabilities (CA$7.4B).


Debt to Equity History and Analysis

Debt Level: QBR.B's debt to equity ratio (572.4%) is considered high.

Reducing Debt: QBR.B's debt to equity ratio has increased from 544.1% to 572.4% over the past 5 years.

Debt Coverage: QBR.B's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: QBR.B's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QBR.B's dividend (2.59%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.68%).

High Dividend: QBR.B's dividend (2.59%) is low compared to the top 25% of dividend payers in the Canadian market (8.42%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.1%), QBR.B'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?

2.6yrs

Average management tenure


CEO

Pierre Péladeau (57yo)

3.17s

Tenure

CA$2,568,930

Compensation

Mr. Pierre Karl Péladeau has been the Chief Executive Officer and President of Quebecor Inc., and Quebecor Media Inc., since February 16, 2017. Previously, Mr. Péladeau served as the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Pierre's total compensation ($USD1.84M) is below average for companies of similar size in the Canadian market ($USD3.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pierre Péladeau
CEO & President3.17yrsCA$2.57m0.78% CA$60.5m
Marc Tremblay
COO & Chief Legal Officer1.25yrsCA$1.48m0.026% CA$2.0m
France Lauzière
President & CEO of TVA Group and Chief Content Officer of Quebecor Content2.5yrsCA$1.36mno data
Hugues Simard
Chief Financial Officer1.25yrsno datano data
Hugo Delaney
Vice President of Public Affairs & Communicationsno datano datano data
Douglas Bassett
Chairman of Quebecor-Ontario Media Advisory Board14.67yrsno datano data
Lyne Robitaille
Senior Vice President of Newspapersno datano data0.00014% CA$10.9k
Martin Tremblay
Chief Operating Officer of Sports & Entertainment Group2.67yrsno datano data
Denis Sabourin
VP & Corporate Controllerno datano datano data
Richard Soly
President of Le SuperClub Vidéotron ltée and President of Music & Retail Group of Quebecor Media Incno datano datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: QBR.B's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Mulroney
Chairman of the Board5.83yrsCA$523.89k0.0016% CA$122.6k
Érik Péladeau
Non-Independent Director4.75yrsCA$874.04k0.00024% CA$18.6k
Robert Paré
Non-Independent Director5.83yrsCA$119.60k0.013% CA$1.0m
Normand Provost
Independent Director6.92yrsCA$162.34kno data
Chantal Bélanger
Corporate Director1.92yrsCA$87.67k0.00039% CA$30.3k
Sylvie Lalande
Vice Chair of the Board & Lead Directorno dataCA$312.93k0.0016% CA$122.6k
André Brosseau
Independent Director3.92yrsCA$157.70kno data
Lise Croteau
Corporate Director0.83yrno datano data
Michèle Colpron
Director0.083yrno datano data

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: QBR.B's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: QBR.B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Quebecor Inc.
  • Ticker: QBR.B
  • Exchange: TSX
  • Founded: 1965
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$7.758b
  • Shares outstanding: 253.85m
  • Website: https://www.quebecor.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QBR.ATSX (The Toronto Stock Exchange)YesClass A Multiple Voting SharesCACADDec 1972
QBCA.FOTCPK (Pink Sheets LLC)YesClass A Multiple Voting SharesUSUSDDec 1972
QBR.BTSX (The Toronto Stock Exchange)Class B Subordinate Voting SharesCACADOct 1986
QBCR.FOTCPK (Pink Sheets LLC)Class B Subordinate Voting SharesUSUSDOct 1986
QB3DB (Deutsche Boerse AG)Class B Subordinate Voting SharesDEEUROct 1986

Biography

Quebecor Inc., through its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. Its Telecommunications segment offers television distribution, Internet access, business solutions, cable and mobile telephony, and over-the-top video services; and engages in the rental of movies and televisual products through its video-on-demand service and video rental stores. The company’s Media segment operates an over-the-air television network and offers specialty television services; provides soundstage and equipment leasing, and post-production services for the film and television industries; prints, publishes, and distributes daily newspapers; operates Internet portals and specialized Web sites; publishes and distributes magazines; rents and distributes video games and game consoles; produces and distributes audiovisual content; and operates an out-of-home advertising business. Its Sports and Entertainment segment engages in the operation and management of the Videotron Centre in Québec City, as well as show production, sporting, and cultural events management; publishing and distribution of books; distribution and production of music; and operation of two Quebec Junior Hockey League teams. Quebecor Inc. was founded in 1965 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:56
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.