QUESTOR TECHNOLOGY INC (QST.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:QST - CA7479461013 - Common Stock
0.435 CAD
+0.03 (+8.75%)
Taking everything into account, QST scores 4 out of 10 in our fundamental rating. QST was compared to 27 industry peers in the Energy Equipment & Services industry. The financial health of QST is average, but there are quite some concerns on its profitability. QST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- QST had negative earnings in the past year.
- In the past year QST had a positive cash flow from operations.
- QST had negative earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: QST reported negative operating cash flow in multiple years.
1.2 Ratios
- QST's Return On Assets of -6.76% is on the low side compared to the rest of the industry. QST is outperformed by 85.19% of its industry peers.
- With a Return On Equity value of -7.66%, QST is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.76% | ||
| ROE | -7.66% | ||
| ROIC | N/A |
ROA(3y)-12.08%
ROA(5y)-10.49%
ROE(3y)-13.65%
ROE(5y)-11.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- QST's Gross Margin of 40.85% is amongst the best of the industry. QST outperforms 85.19% of its industry peers.
- In the last couple of years the Gross Margin of QST has declined.
- The Profit Margin and Operating Margin are not available for QST so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.85% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-12.72%
2. Health
2.1 Basic Checks
- QST does not have a ROIC to compare to the WACC, probably because it is not profitable.
- QST has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for QST has been increased compared to 5 years ago.
- QST has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.66 indicates that QST is not in any danger for bankruptcy at the moment.
- QST has a better Altman-Z score (3.66) than 81.48% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that QST is not too dependend on debt financing.
- QST's Debt to Equity ratio of 0.03 is amongst the best of the industry. QST outperforms 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.66 |
ROIC/WACCN/A
WACC7.68%
2.3 Liquidity
- A Current Ratio of 3.47 indicates that QST has no problem at all paying its short term obligations.
- The Current ratio of QST (3.47) is better than 96.30% of its industry peers.
- A Quick Ratio of 3.26 indicates that QST has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.26, QST belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.00% over the past year.
- Looking at the last year, QST shows a very strong growth in Revenue. The Revenue has grown by 87.15%.
- QST shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -31.60% yearly.
EPS 1Y (TTM)30%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)87.15%
Revenue growth 3Y-6.35%
Revenue growth 5Y-31.6%
Sales Q2Q%-40.18%
3.2 Future
- Based on estimates for the next years, QST will show a very strong growth in Earnings Per Share. The EPS will grow by 53.15% on average per year.
- The Revenue is expected to grow by 48.41% on average over the next years. This is a very strong growth
EPS Next Y62.55%
EPS Next 2Y55.61%
EPS Next 3Y53.15%
EPS Next 5YN/A
Revenue Next Year44.07%
Revenue Next 2Y48.1%
Revenue Next 3Y48.41%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- QST reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 9.39, the valuation of QST can be described as very reasonable.
- 74.07% of the companies in the same industry are more expensive than QST, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. QST is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QST is valued more expensive than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.26 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- QST's earnings are expected to grow with 53.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.61%
EPS Next 3Y53.15%
5. Dividend
5.1 Amount
- QST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
QUESTOR TECHNOLOGY INC / QST.CA FAQ
Can you provide the ChartMill fundamental rating for QUESTOR TECHNOLOGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to QST.CA.
What is the valuation status for QST stock?
ChartMill assigns a valuation rating of 4 / 10 to QUESTOR TECHNOLOGY INC (QST.CA). This can be considered as Fairly Valued.
How profitable is QUESTOR TECHNOLOGY INC (QST.CA) stock?
QUESTOR TECHNOLOGY INC (QST.CA) has a profitability rating of 1 / 10.
How financially healthy is QUESTOR TECHNOLOGY INC?
The financial health rating of QUESTOR TECHNOLOGY INC (QST.CA) is 6 / 10.