QUORUM INFORMATION TECH INC (QIS.CA) Stock Fundamental Analysis
TSX-V:QIS - TSX Venture Exchange - CA7490931002 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to QIS. QIS was compared to 61 industry peers in the Software industry. QIS has only an average score on both its financial health and profitability. QIS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year QIS was profitable.
In the past year QIS had a positive cash flow from operations.
In multiple years QIS reported negative net income over the last 5 years.
QIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QIS has a better Return On Assets (3.47%) than 63.93% of its industry peers.
QIS's Return On Equity of 4.96% is fine compared to the rest of the industry. QIS outperforms 67.21% of its industry peers.
QIS's Return On Invested Capital of 7.01% is fine compared to the rest of the industry. QIS outperforms 75.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QIS is significantly below the industry average of 12.52%.
The last Return On Invested Capital (7.01%) for QIS is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 4.96% | ||
| ROIC | 7.01% |
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
QIS's Profit Margin of 3.68% is fine compared to the rest of the industry. QIS outperforms 63.93% of its industry peers.
QIS's Operating Margin of 8.14% is fine compared to the rest of the industry. QIS outperforms 72.13% of its industry peers.
QIS's Operating Margin has improved in the last couple of years.
QIS has a Gross Margin (48.82%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of QIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.14% | ||
| PM (TTM) | 3.68% | ||
| GM | 48.82% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QIS is destroying value.
Compared to 1 year ago, QIS has about the same amount of shares outstanding.
Compared to 5 years ago, QIS has more shares outstanding
QIS has a better debt/assets ratio than last year.
2.2 Solvency
QIS has an Altman-Z score of 3.64. This indicates that QIS is financially healthy and has little risk of bankruptcy at the moment.
QIS has a Altman-Z score of 3.64. This is in the better half of the industry: QIS outperforms 65.57% of its industry peers.
The Debt to FCF ratio of QIS is 1.25, which is an excellent value as it means it would take QIS, only 1.25 years of fcf income to pay off all of its debts.
QIS's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. QIS outperforms 73.77% of its industry peers.
QIS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
QIS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. QIS outperforms 55.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 3.64 |
ROIC/WACC0.68
WACC10.29%
2.3 Liquidity
A Current Ratio of 1.92 indicates that QIS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.92, QIS is doing good in the industry, outperforming 63.93% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that QIS should not have too much problems paying its short term obligations.
QIS has a better Quick ratio (1.92) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
QIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.87%.
The Revenue has decreased by -0.92% in the past year.
The Revenue has been growing slightly by 4.00% on average over the past years.
EPS 1Y (TTM)-22.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-95.39%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y3.49%
Revenue growth 5Y4%
Sales Q2Q%0.91%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
The Revenue is expected to grow by 0.87% on average over the next years.
EPS Next Y25%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.5%
Revenue Next 2Y0.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and 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
Based on the Price/Earnings ratio of 36.00, the valuation of QIS can be described as expensive.
75.41% of the companies in the same industry are more expensive than QIS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of QIS to the average of the S&P500 Index (27.25), we can say QIS is valued slightly more expensively.
A Price/Forward Earnings ratio of 13.98 indicates a correct valuation of QIS.
Based on the Price/Forward Earnings ratio, QIS is valued cheaper than 85.25% of the companies in the same industry.
QIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
83.61% of the companies in the same industry are more expensive than QIS, based on the Enterprise Value to EBITDA ratio.
QIS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QIS is cheaper than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
QIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
QIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
QIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:QIS (7/30/2025, 7:00:00 PM)
0.72
+0.01 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners51.74%
Inst Owner ChangeN/A
Ins Owners3.91%
Ins Owner ChangeN/A
Market Cap53.02M
Analysts40
Price Target0.87 (20.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36 | ||
| Fwd PE | 13.98 | ||
| P/S | 1.32 | ||
| P/FCF | 9.74 | ||
| P/OCF | 7.17 | ||
| P/B | 1.78 | ||
| P/tB | 14.55 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)0.02
EY2.78%
EPS(NY)0.05
Fwd EY7.15%
FCF(TTM)0.07
FCFY10.27%
OCF(TTM)0.1
OCFY13.95%
SpS0.54
BVpS0.4
TBVpS0.05
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 4.96% | ||
| ROCE | 8.47% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 31.26% | ||
| OM | 8.14% | ||
| PM (TTM) | 3.68% | ||
| GM | 48.82% | ||
| FCFM | 13.6% |
ROA(3y)1.17%
ROA(5y)-1.25%
ROE(3y)1.38%
ROE(5y)-2.36%
ROIC(3y)3.87%
ROIC(5y)N/A
ROICexc(3y)4.14%
ROICexc(5y)N/A
ROICexgc(3y)15.2%
ROICexgc(5y)N/A
ROCE(3y)4.67%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y144.29%
ROICexc growth 3YN/A
ROICexc growth 5Y139.19%
OM growth 3YN/A
OM growth 5Y128.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.89%
GM growth 5Y1.36%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 46.07% | ||
| Cap/Sales | 4.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.76% | ||
| Profit Quality | 369.34% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 3.64 |
F-Score6
WACC10.29%
ROIC/WACC0.68
Cap/Depr(3y)65.2%
Cap/Depr(5y)71.07%
Cap/Sales(3y)6.78%
Cap/Sales(5y)7.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-95.39%
EPS Next Y25%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y3.49%
Revenue growth 5Y4%
Sales Q2Q%0.91%
Revenue Next Year0.5%
Revenue Next 2Y0.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.93%
EBIT growth 3YN/A
EBIT growth 5Y138.11%
EBIT Next Year102.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1244.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y127.76%
OCF growth 3Y62.42%
OCF growth 5Y14.99%