QUORUM INFORMATION TECH INC (QIS.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:QIS - CA7490931002 - Common Stock
0.79 CAD
0 (0%)
We assign a fundamental rating of 5 out of 10 to QIS. QIS was compared to 68 industry peers in the Software industry. QIS has an excellent financial health rating, but there are some minor concerns on its profitability. QIS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- QIS had positive earnings in the past year.
- In the past year QIS had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: QIS reported negative net income in multiple years.
- Each year in the past 5 years QIS had a positive operating cash flow.
1.2 Ratios
- QIS has a better Return On Assets (3.64%) than 74.24% of its industry peers.
- QIS has a Return On Equity of 4.95%. This is in the better half of the industry: QIS outperforms 74.24% of its industry peers.
- The Return On Invested Capital of QIS (6.91%) is better than 72.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for QIS is significantly below the industry average of 12.48%.
- The last Return On Invested Capital (6.91%) for QIS is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 4.95% | ||
| ROIC | 6.91% |
ROA(3y)1.17%
ROA(5y)-1.25%
ROE(3y)1.38%
ROE(5y)-2.36%
ROIC(3y)3.87%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.67%, QIS is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
- The Operating Margin of QIS (7.68%) is better than 74.24% of its industry peers.
- QIS's Operating Margin has improved in the last couple of years.
- The Gross Margin of QIS (48.69%) is comparable to the rest of the industry.
- QIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | 3.67% | ||
| GM | 48.69% |
OM growth 3YN/A
OM growth 5Y128.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.89%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QIS is destroying value.
- Compared to 1 year ago, QIS has about the same amount of shares outstanding.
- QIS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for QIS has been reduced compared to a year ago.
2.2 Solvency
- QIS has an Altman-Z score of 4.44. This indicates that QIS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of QIS (4.44) is better than 74.24% of its industry peers.
- QIS has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
- QIS has a better Debt to FCF ratio (0.77) than 84.85% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that QIS is not too dependend on debt financing.
- QIS's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. QIS outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 4.44 |
ROIC/WACC0.7
WACC9.84%
2.3 Liquidity
- A Current Ratio of 2.17 indicates that QIS has no problem at all paying its short term obligations.
- QIS has a Current ratio of 2.17. This is in the better half of the industry: QIS outperforms 68.18% of its industry peers.
- QIS has a Quick Ratio of 2.17. This indicates that QIS is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.17, QIS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
- The earnings per share for QIS have decreased strongly by -18.03% in the last year.
- Looking at the last year, QIS shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
- QIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.00% yearly.
EPS 1Y (TTM)-18.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1.89%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.49%
Revenue growth 5Y4%
Sales Q2Q%3.3%
3.2 Future
- The Earnings Per Share is expected to grow by 11.80% on average over the next years. This is quite good.
- QIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.85% yearly.
EPS Next Y-25%
EPS Next 2Y11.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.24%
Revenue Next 2Y1.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- QIS is valuated quite expensively with a Price/Earnings ratio of 39.50.
- Compared to the rest of the industry, the Price/Earnings ratio of QIS indicates a somewhat cheap valuation: QIS is cheaper than 77.27% of the companies listed in the same industry.
- QIS is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.34, which indicates a correct valuation of QIS.
- QIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QIS is cheaper than 78.79% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. QIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.5 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QIS is valued cheaper than 81.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, QIS is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
- The decent profitability rating of QIS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- QIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
QUORUM INFORMATION TECH INC / QIS.CA FAQ
What is the fundamental rating for QIS stock?
ChartMill assigns a fundamental rating of 5 / 10 to QIS.CA.
What is the valuation status of QUORUM INFORMATION TECH INC (QIS.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to QUORUM INFORMATION TECH INC (QIS.CA). This can be considered as Fairly Valued.
How profitable is QUORUM INFORMATION TECH INC (QIS.CA) stock?
QUORUM INFORMATION TECH INC (QIS.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for QIS stock?
The Price/Earnings (PE) ratio for QUORUM INFORMATION TECH INC (QIS.CA) is 39.5 and the Price/Book (PB) ratio is 1.94.
How financially healthy is QUORUM INFORMATION TECH INC?
The financial health rating of QUORUM INFORMATION TECH INC (QIS.CA) is 7 / 10.