finance & markets•Sun, October 25, 2026•4 min read

Is Quebecor the Most Undervalued Telecom Play Right Now?

Quebecor has delivered strong momentum in 2026, yet its valuation remains notably lower than industry peers. We break down the financial data behind this disconnect and what it means for investors.

A Valuation Disconnect

For investors scanning the telecommunications sector, Quebecor (TSX:QBR.A) presents a compelling, albeit head-scratching, case. While the company has enjoyed a year of sustained share price momentum—boasting a 33.6% year-to-date return—it continues to trade at a price-to-earnings (P/E) ratio of approximately 13x. When contrasted with a peer group average of 29.8x and a broader global telecom industry average of 16.7x, the stock looks significantly cheaper than its fundamentals might suggest.

Strong Performance Meets Efficiency

Quebecor’s financial health suggests that the market may be undervaluing its operational performance. In the first quarter of 2026, the company reported consolidated revenues of $1.40 billion, marking a 3.9% increase year-over-year. This growth was driven primarily by its telecommunications segment, which saw revenues climb by $56.8 million.

Operating Margin: 27.37% (TTM), significantly higher than the industry average of 8.61%.
Net Profit Margin: 16.31% (TTM), compared to the industry average of -0.61%.
Earnings Growth: 22.15% EPS growth over the past year.

These margins indicate a company that is not just growing, but is highly efficient at converting revenue into profit. The discrepancy between these solid metrics and the current share price leads some analysts to suggest an estimated fair P/E ratio of around 18.3x, implying there may be room for a market re-rating if these trends persist.

Looking Ahead

Beyond valuation multiples, the company is actively managing its capital structure. As of August 2026, Quebecor has been engaged in share buyback activities on the open market, signaling confidence from management in the company's long-term value. While global economic factors—such as trade barriers and local advertising shifts—remain variables to watch, the consistency in Quebecor's 2026 performance suggests that the current momentum is built on more than just short-term speculation.

Quebecor's lower multiple relative to these benchmarks highlights its good relative value based on current earnings strength.
— Financial Analysis Research

Key Takeaways

Quebecor trades at a 13x P/E ratio, well below the industry peer average of 29.8x.
The company reported a 3.9% revenue increase in Q1 2026, reaching $1.40 billion.
Operating margins (27.37%) and net profit margins (16.31%) both significantly outperform industry averages.
The stock has seen a 33.6% year-to-date share price return as of 2026.
Management is actively utilizing share buybacks to return value to shareholders.

FAQ

What is Quebecor's current P/E ratio compared to its peers?

Quebecor is trading at a P/E of 13x, which is notably lower than the peer group average of 29.8x and the global telecom industry average of 16.7x.

How did Quebecor perform in the first quarter of 2026?

Quebecor reported $1.40 billion in revenues for Q1 2026, a 3.9% increase compared to the same period in 2025.

Is Quebecor buying back its own shares?

Yes, as of August 2026, the company has been purchasing shares on the open market through the Toronto Stock Exchange for cancellation.

What are the primary drivers of Quebecor's growth?

The telecommunications segment is a key driver, contributing a $56.8 million increase in revenue during the first quarter of 2026.

Arpit Agrahari