Is it a good company at a reasonable price? The stock price is off its recent high, but the stock price has climber sharply since January 2025. It has done well for its shareholders over time, but a lot of that has to do with the recent rise in the stock price. This seems like a good stock, but because of the current price, I would be cautious if buying. The stock price may not be very reasonable at present. When buying any company, you should do more than one purchase and purchase in different months.
I do not own this stock of Quebecor Inc (TSX-QBR.B, OTC-QBCRF). I thought I should cover more communication stock besides BCE, so I chose Quebecor Inc, Telus Inc and Cogeco Communications Inc.
When I was updating my spreadsheet, I noticed that last year the stock price went up 64% and this year it went up 26%. There are good increases in the stock price. This company has been growing. See the chart below. Dividends were increased twice in 2026 and increase for 2026 of 21.4%.
In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2026 and expected growth over this year. I have included EBITDA Growth as this has become more important.
| Yr | Item | Tot. Gwth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth | 31.44% | 5.62% | 1.97% | <-12 mths |
| 5 | AEPS Growth | 63.47% | 10.33% | 6.59% | <-12 mths |
| 5 | Net Income Growth | 40.97% | 7.11% | 10.27% | <-12 mths |
| 5 | EBITDA Growth | 22.56% | 4.15% | 2.06% | <-12 mths |
| 5 | Cash Flow Growth | 44.04% | 7.57% | 1.54% | <-12 mths |
| 5 | Dividend Growth | 75.00% | 11.84% | 21.43% | <-12 mths |
| 5 | Stock Price Growth | 57.81% | 9.55% | 26.48% | <-12 mths |
| 10 | Revenue Growth | 46.29% | 3.88% | 3.11% | <-this year |
| 10 | AEPS Growth | 354.26% | 16.34% | 12.61% | <-this year |
| 10 | Net Income Growth | 463.90% | 18.88% | 16.94% | <-this year |
| 10 | EBITDA Growth | 66.11% | 5.21% | 4.71% | <-this year |
| 10 | Cash Flow Growth | 92.31% | 6.76% | 1.54% | <-this year |
| 10 | Dividend Growth | 2053.85% | 35.93% | 21.43% | <-this year |
| 10 | Stock Price Growth | 205.19% | 11.80% | 41.59% | <-Next 12 |
If you had invested in this company in December 2015, for $1,016.40 you would have bought 26 shares at $16.94 per share. In December 2025, after 10 years you would have received $473.31 in dividends. The stock would be worth $3,102.00. Your total return would have been $3,575.31. This would be a total return of 14.13% per year with 11.80% from capital gain and 2.33% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $16.94 | $1,016.40 | 60 | 10 | $473.31 | $3,102.00 | $3,575.31 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.72%. The 5 and 10 year median dividend yields are also moderate at 3.81% and 2.99%. The historical median dividend yield is low (below 2%) at 0.74%. Prior to 2019, the dividend yields were under 2%. The dividend growth over the past 5 years was moderate (8% per year) at 11.8% per year.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 38% with 5 year coverage at 42%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 37% with 5 year coverage at 41%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 18% with 5 year coverage at 19%. The DPR for 2025 for Free Cash Flow (FCF) is good at 28% with 5 year coverage at 41%. FCF varies in 2025 from $1,120M to $1,426M and I have using $1,120M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 37.94% | 42.58% |
| AEPS | 36.92% | 41.10% |
| CFPS | 18.10% | 18.61% |
| FCF | 28.83% | 41.08% |
Debt Ratios are mostly fine, but debt level is high. The Long Term Debt/Market Cap Ratio for 2025 is fine at 0.54 and currently good at 0.38. The Liquidity Ratio for 2025 is too low at 0.89 and 0.68 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.68 and currently quite low at 1.09. The Debt Ratio for 2025 is low at 1.27 and 1.30 currently. I like to see these ratios are 1.50 or higher. The Leverage and Debt/Equity Ratios for 2025 are too high at 4.88 and 3.84 and currently at 4.72 and 3.64. I like to see these ratios below 3.00 and 2.00 but utilities do have lots of debt.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.54 | 0.38 |
| Intang/GW | 0.52 | 0.44 |
| Liquidity | 0.89 | 0.68 |
| Liq. + CF | 1.68 | 1.09 |
| Debt Ratio | 1.27 | 1.30 |
| Leverage | 4.88 | 4.72 |
| D/E Ratio | 3.84 | 3.64 |
The Total Return per Year is shown below for years of 5 to 35 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 11.84% | 12.78% | 9.63% | 3.15% |
| 2015 | 10 | 35.93% | 14.20% | 11.88% | 2.33% |
| 2010 | 15 | 24.88% | 13.73% | 12.06% | 1.68% |
| 2005 | 20 | 18.43% | 12.40% | 11.05% | 1.35% |
| 2000 | 25 | 10.06% | 9.84% | 8.76% | 1.09% |
| 1995 | 30 | 12.47% | 9.11% | 8.03% | 1.09% |
| 1990 | 35 | 11.10% | 9.90% | 1.25% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.36, 11.24 and 12.75. The corresponding 10 year ratios are 11.39, 12.66 and 14.46. The corresponding historical ratios are 9.60, 11.25 and 13.01. The current ratio is 18.95 based on a stock price of $65.95 and EPS estimate for 2026 of $3.48. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.99, 10.80 and 12.24. The corresponding 10 year ratios are 11.32, 12.97 and 14.61. The corresponding historical ratios are 11.05, 12.97 and 14.61. The current ratio is 15.44 based on a stock price of $65.95 and AEPS estimate for 2026 of $4.27. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $34.30. The 10-year low, median, and high median Price/Graham Price Ratios are 1.71, 1.96 and 2.21. The current ratio is 2.13 based on a stock price of $65.95. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Book Value per Share Ratio of 6.45. The current ratio is 5.37 based on a Book Value of $2,743.7M, Book Value per Share of $12.25 and a stock price of $65.95. The current ratio is 17% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.91. The current ratio is 9.85 based on Cash Flow per Share of $6.70, Cash Flow estimate for 2026 of $1,500M and a stock price of $65.95. The current ratio is 100% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. (I sort of wonder about the estimate as the estimate is 26% below the CFPS for 2025.)
If we use the Cash Flow for the last 12 months of $2,094M, we get a Cash Flow per Share of $9.35 and with a stock price of $65.95 and a ratio of 7.06. This ratio is 44% above the 10 year median ratio. And, this stock price testing suggests that the stock price is relatively expensive. So, the score is not better.
I get an historical median dividend yield of 0.74%. The current ratio is 2.73% based on dividends of $1.80 and a stock price of $65.95. The current dividend yield is 269% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. (See above that yields were really low before 2019.)
I get an historical median dividend yield of 2.99%. The current ratio is 2.73% based on dividends of $1.80 and a stock price of $65.95. The current dividend yield is 8.6% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 1.52. The current ratio is 2.52 based on Revenue estimate for 2026 of $5,852M, Revenue per Share of $26.12 and a stock price of $65.95. The current ratio is 66% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is could be reasonable, but probably not. The 10 year median dividend yield test says that the stock price is reasonable, but above the median. The P/S Ratio test does not confirm this result and it says that the stock price is relatively expensive. A number of other tests are saying that the stock price is relatively expensive.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (5) and Hold (5). The consensus is Strong Buy. The 12 month stock price consensus is $73.20 with a high of $80.00 and a low of 66.00. The 12 month stock price consensus of $73.20 implies a total return of 13.72% with 10.99% from capital gains and 2.73% from dividends based on a current stock price of $65.95.
Analysts on Stock Chase this year like this stock. Last year one analyst said that money was rotated from telcos to cable companies like this one and there would be some sort of mean reversion. So be cautious. Joey Frenette on Motley Fool thinks that investors will be better off with this stock than with Telus or BCE. Amy Legate-Wolfe on Motley Fool says that because of inflation you want to look at dividend growth not yield. She likes this stock as a dividend grower. The company put out a Press Release for the fourth quarter results of 2025. The company put out a Press Release about their second quarter of 2026.
Simply Wall Street via Yahoo Finance looks at the fair market value of this stock from different perspectives. Simply Wall Street has one warning of has a high level of debt. Simply Wall Street gives this stock 2 and one half stars out of 5.
Quebecor is a Canadian telecom service provider that operates a growing national wireless network and a broadband footprint in Quebec. Quebecor also operates media and sports and entertainment segments, including its television network, newspaper publishing, a minor league hockey team, and the Videotron Center. Its web site is here Quebecor Inc.
The last stock I wrote about was about was Cenovus Energy Inc (TSX-CVE, NYSE-CVE) ... learn more. The next stock I will write about will be Johnson and Johnson (NYSE-JNJ) ... learn more on Friday, October 30, 2026 around 5 pm. Tomorrow on my other blog I will write about Looking for Good Stock to Buy.... learn more on Thursday, October 29, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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