QUARTERHILL INC (QTRH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:QTRH - CA7477131055 - Common Stock
0.94 CAD
-0.01 (-1.05%)
We assign a fundamental rating of 2 out of 10 to QTRH. QTRH was compared to 11 industry peers in the Communications Equipment industry. QTRH may be in some trouble as it scores bad on both profitability and health. QTRH does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- QTRH had negative earnings in the past year.
- The reported net income has been mixed in the past 5 years: QTRH reported negative net income in multiple years.
- The reported operating cash flow has been mixed in the past 5 years: QTRH reported negative operating cash flow in multiple years.
1.2 Ratios
- QTRH has a Return On Assets of -8.92%. This is comparable to the rest of the industry: QTRH outperforms 45.45% of its industry peers.
- QTRH has a Return On Equity (-17.00%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.92% | ||
| ROE | -17% | ||
| ROIC | N/A |
ROA(3y)-7.51%
ROA(5y)-4.34%
ROE(3y)-13.17%
ROE(5y)-8.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Gross Margin value of 18.32%, QTRH perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- QTRH's Gross Margin has declined in the last couple of years.
- QTRH does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 18.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-15.24%
GM growth 5Y-16.44%
2. Health
2.1 Basic Checks
- QTRH does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, QTRH has more shares outstanding
- Compared to 5 years ago, QTRH has less shares outstanding
- QTRH has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -1.30, we must say that QTRH is in the distress zone and has some risk of bankruptcy.
- QTRH has a worse Altman-Z score (-1.30) than 63.64% of its industry peers.
- QTRH has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of QTRH (0.03) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.3 |
ROIC/WACCN/A
WACC8.78%
2.3 Liquidity
- QTRH has a Current Ratio of 0.99. This is a bad value and indicates that QTRH is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.99, QTRH is in line with its industry, outperforming 45.45% of the companies in the same industry.
- A Quick Ratio of 0.90 indicates that QTRH may have some problems paying its short term obligations.
- QTRH has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.77% over the past year.
- Looking at the last year, QTRH shows a decrease in Revenue. The Revenue has decreased by -0.65% in the last year.
- Measured over the past years, QTRH shows a decrease in Revenue. The Revenue has been decreasing by -2.38% on average per year.
EPS 1Y (TTM)13.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y6.84%
Revenue growth 5Y-2.38%
Sales Q2Q%5.52%
3.2 Future
- QTRH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.15% yearly.
- QTRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y-50.65%
EPS Next 2Y38.9%
EPS Next 3Y31.15%
EPS Next 5YN/A
Revenue Next Year1.4%
Revenue Next 2Y0.44%
Revenue Next 3Y5.07%
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
- QTRH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for QTRH. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- QTRH's earnings are expected to grow with 31.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.9%
EPS Next 3Y31.15%
5. Dividend
5.1 Amount
- QTRH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
QUARTERHILL INC / QTRH.CA FAQ
What is the ChartMill fundamental rating of QUARTERHILL INC (QTRH.CA) stock?
ChartMill assigns a fundamental rating of 2 / 10 to QTRH.CA.
Can you provide the valuation status for QUARTERHILL INC?
ChartMill assigns a valuation rating of 1 / 10 to QUARTERHILL INC (QTRH.CA). This can be considered as Overvalued.
What is the profitability of QTRH stock?
QUARTERHILL INC (QTRH.CA) has a profitability rating of 1 / 10.
Can you provide the dividend sustainability for QTRH stock?
The dividend rating of QUARTERHILL INC (QTRH.CA) is 0 / 10 and the dividend payout ratio is 0%.