Quebecor Inc (B)QBR.B.TODON'T BUYFeb 15, 2023Stock price when the opinion was issued
As of Jul 24, 2026. Market Open.
Are the dominant cable player in Quebec and benefitted a lot from Rogers buying Shaw then having to sell Freedom Mobile at great terms to Quebecor. Also, they bought spectrum cheaply so they can expand into Ontario and western Canada and much lower capex. Generating strong cash flow. Debt will probably get upgraded by year's end. 40% EBITDA margins, the best of the group. Trades at 6.5x EBITA vs. 810x its peers. Telcos remain an oligopoly. Has the most upside in this sector.
(Analysts’ price target is $40.31)He owns BCE and Telus instead for income. At this point in the cycle, and just looking at total return, he wouldn't own any telcos. Better opportunities elsewhere for capital gains in the value and cyclical areas. Not a pure play telco. Not the biggest or most diversified. Commends what they're doing with the business.
Dramatically lower valuation than peers. Likely to benefit from Rogers-Shaw merger, as it'll pick up assets at a pretty good price. Short term positives. But long term, just doesn't have the scale, or ambition, to compete nationally.