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To own Quebecor, you need to believe its mix of Canadian telecom and media assets can keep throwing off solid cash flows while the company actively returns capital. The latest quarter’s higher earnings, another dividend increase to C$0.45 per share and a fresh buyback of up to 8,000,000 shares reinforce that shareholder-return story in the near term, especially after a very strong one-year total return. At the same time, these moves do not change the core short term catalysts: how effectively Quebecor manages competition and capital intensity in a high-debt structure, and whether earnings momentum holds up after a strong run. The expanded repurchase plan slightly sharpens the focus on balance sheet risk, but does not materially alter the fundamental risk-reward profile for now.
However, investors should be aware of how Quebecor’s high debt interacts with its aggressive buybacks. Despite retreating, Quebecor's shares might still be trading above their fair value and there could be some more downside. Discover how much.Explore another fair value estimate on Quebecor - why the stock might be worth over 2x more than the current price!
Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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