TSX:QBR.B

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

0.2%

QBR.B

0.9%

CA Media

0.2%

CA Market


1 Year Return

17.4%

QBR.B

17.2%

CA Media

1.2%

CA Market

Return vs Industry: QBR.B matched the Canadian Media industry which returned 17.2% over the past year.

Return vs Market: QBR.B exceeded the Canadian Market which returned 1.2% over the past year.


Shareholder returns

QBR.BIndustryMarket
7 Day0.2%0.9%0.2%
30 Day2.9%1.2%-2.5%
90 Day0.7%2.1%-1.5%
1 Year18.7%17.4%21.7%17.2%4.7%1.2%
3 Year65.6%61.9%30.1%14.9%14.0%3.8%
5 Year131.1%124.2%29.2%2.1%26.4%8.1%

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?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: QBR.B (CA$30.81) is trading below our estimate of fair value (CA$36.8)

Significantly Undervalued: QBR.B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: QBR.B is poor value based on its PE Ratio (14.5x) compared to the Media industry average (14.1x).

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


Price to Earnings Growth Ratio

Low PEG Ratio: QBR.B is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: QBR.B is overvalued based on its PB Ratio (10.3x) compared to the CA Media industry average (0.7x).


Next Steps

Future Growth

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

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QBR.B's forecast earnings growth (2.2% per year) is above the savings rate (1.9%).

Earnings vs Market: QBR.B's earnings (2.2% per year) are forecast to grow slower than the Canadian market (13.3% per year).

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

Revenue vs Market: QBR.B's revenue (2.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: QBR.B's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

36.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QBR.B's earnings have grown significantly by 36.5% per year over the past 5 years.

Accelerating Growth: QBR.B's earnings growth over the past year (57.2%) exceeds its 5-year average (36.5% per year).

Earnings vs Industry: QBR.B earnings growth over the past year (57.2%) exceeded the Media industry -32.2%.


Return on Equity

High ROE: Whilst QBR.B's Return on Equity (63.03%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: QBR.B has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: QBR.B has significantly improved its Return on Capital Employed over the past 3 years.


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 (1.1B) do not cover its long term liabilities (7.6B)


Debt to Equity History and Analysis

Debt Level: QBR.B's debt to equity ratio (760%) is considered high

Reducing Debt: QBR.B's debt to equity ratio has increased from 494.2% to 760% over the past 5 years.

Debt Coverage: QBR.B's debt is not well covered by operating cash flow (19%).

Interest Coverage: QBR.B's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: QBR.B has a high level of physical assets or inventory.

Debt Coverage by Assets: QBR.B's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.0%markettop25%5.9%industryaverage3.1%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QBR.B's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: QBR.B's dividend (1.46%) is low compared to the top 25% of dividend payers in the Canadian market (5.94%).

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 (13%), QBR.B's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QBR.B's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).


Next Steps

Management

What is the CEO of Quebecor's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Pierre Péladeau (57yo)

2.7yrs

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 ($USD1.95M) is below average for companies of similar size in the Canadian market ($USD3.99M).

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


Management Age and Tenure

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: QBR.B's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

64yo

Average Age

Experienced Board: QBR.B's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCA$301,24815 Aug 19
Manon Brouillette
EntityIndividual
Role
Member of the Board of Directors
Corporate Director
Shares10,000
Max PriceCA$30.17
SellCA$124,62710 Jul 19
Jean Novak
EntityIndividual
Shares3,984
Max PriceCA$31.28
SellCA$1,004,86025 Mar 19
Marc Tremblay
EntityIndividual
Role
Chief Operating Officer
COO & Chief Legal Officer
Shares31,580
Max PriceCA$31.82
SellCA$2,727,88820 Mar 19
Marc Tremblay
EntityIndividual
Role
Chief Operating Officer
COO & Chief Legal Officer
Shares87,100
Max PriceCA$31.32
BuyCA$30,45028 Jan 19
Chantal Bélanger
EntityIndividual
Role
Member of the Board of Directors
Corporate Director
Shares1,000
Max PriceCA$30.45

Ownership Breakdown


Management Team

  • Douglas Bassett (78yo)

    Chairman of Quebecor-Ontario Media Advisory Board

    • Tenure: 14.2yrs
  • Hugues Simard (52yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Pierre Péladeau (57yo)

    CEO & President

    • Tenure: 2.7yrs
    • Compensation: CA$2.57m
  • Jocelyn Poirier

    Senior Vice President of Corporate Development

    • Tenure: 0.3yrs
  • France Lauzière (52yo)

    President & CEO of TVA Group and Chief Content Officer of Quebecor Content

    • Tenure: 2yrs
    • Compensation: CA$1.36m
  • Lyne Robitaille (56yo)

    Senior Vice President of Newspapers

    • Tenure: 0yrs
  • Marc Tremblay (58yo)

    COO & Chief Legal Officer

    • Tenure: 0.8yrs
    • Compensation: CA$1.48m
  • Martin Tremblay (43yo)

    Chief Operating Officer of Sports & Entertainment Group

    • Tenure: 2.2yrs
  • Hugo Delaney

    Vice President of Public Affairs & Communications

    • Tenure: 0yrs
  • Patrick Jutras

    Senior VP & Chief Advertising Officer

    • Tenure: 0.08yrs

Board Members

  • M. Mulroney (79yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: CA$523.89k
  • Érik Péladeau (64yo)

    Non-Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$874.04k
  • Robert Paré (64yo)

    Non-Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$119.60k
  • Normand Provost (64yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$162.34k
  • Chantal Bélanger (67yo)

    Corporate Director

    • Tenure: 1.4yrs
    • Compensation: CA$87.67k
  • Sylvie Lalande (68yo)

    Vice Chair of the Board & Lead Director

    • Tenure: 0yrs
    • Compensation: CA$312.93k
  • Manon Brouillette (50yo)

    Corporate Director

    • Tenure: 0.4yrs
    • Compensation: CA$2.93m
  • André Brosseau (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$157.70k
  • Lise Croteau (59yo)

    Corporate Director

    • Tenure: 0.3yrs

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: 1950
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$7.894b
  • Shares outstanding: 255.92m
  • 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)Class A Multiple Voting SharesCACADDec 1972
QBR.BTSX (The Toronto Stock Exchange)YesClass B Subordinate Voting SharesCACADOct 1986
QBCR.FOTCPK (Pink Sheets LLC)YesClass B Subordinate Voting SharesUSUSDOct 1986
QB3DB (Deutsche Boerse AG)YesClass B Subordinate Voting SharesDEEUROct 1986

Biography

Quebecor Inc. operates in the telecommunications, media, and sports and entertainment businesses in Canada. Its Telecommunications segment offers television distribution, Internet access, business solution ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:41
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.