ASX:QIP

Stock Analysis Report

QANTM Intellectual Property

Executive Summary

QANTM Intellectual Property Limited provides intellectual property services for start-up technology businesses, multinationals, public research institutions, and universities in Australia and internationally.


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

How has QANTM Intellectual Property's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QIP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

QIP

-2.4%

AU Professional Services

0.3%

AU Market


1 Year Return

-24.7%

QIP

-23.6%

AU Professional Services

-22.9%

AU Market

Return vs Industry: QIP underperformed the Australian Professional Services industry which returned -23.5% over the past year.

Return vs Market: QIP underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

QIPIndustryMarket
7 Day-5.3%-2.4%0.3%
30 Day-20.0%-35.0%-27.8%
90 Day-23.8%-39.0%-30.0%
1 Year-19.9%-24.7%-21.5%-23.6%-19.4%-22.9%
3 Year-36.4%-46.5%-6.5%-14.4%-8.3%-20.8%
5 Yearn/a1.4%-13.9%2.9%-20.3%

Price Volatility Vs. Market

How volatile is QANTM Intellectual Property's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is QANTM Intellectual Property undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QIP (A$1.03) is trading below our estimate of fair value (A$2.99)

Significantly Below Fair Value: QIP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QIP is poor value based on its PE Ratio (12.5x) compared to the Professional Services industry average (11.4x).

PE vs Market: QIP is good value based on its PE Ratio (12.5x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: QIP is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: QIP is overvalued based on its PB Ratio (2x) compared to the AU Professional Services industry average (1.2x).


Next Steps

Future Growth

How is QANTM Intellectual Property forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QIP's forecast earnings growth (15.9% per year) is above the savings rate (1.1%).

Earnings vs Market: QIP's earnings (15.9% per year) are forecast to grow faster than the Australian market (10% per year).

High Growth Earnings: QIP's earnings are forecast to grow, but not significantly.

Revenue vs Market: QIP's revenue (3.5% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: QIP's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QIP's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has QANTM Intellectual Property performed over the past 5 years?

-12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QIP has a large one-off loss of A$4.2M impacting its December 31 2019 financial results.

Growing Profit Margin: QIP's current net profit margins (9.6%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: QIP's earnings have declined by -12.9% per year over the past 5 years.

Accelerating Growth: QIP's earnings growth over the past year (5.1%) exceeds its 5-year average (-12.9% per year).

Earnings vs Industry: QIP earnings growth over the past year (5.1%) underperformed the Professional Services industry 12.9%.


Return on Equity

High ROE: QIP's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is QANTM Intellectual Property's financial position?


Financial Position Analysis

Short Term Liabilities: QIP's short term assets (A$37.1M) exceed its short term liabilities (A$18.5M).

Long Term Liabilities: QIP's short term assets (A$37.1M) do not cover its long term liabilities (A$38.5M).


Debt to Equity History and Analysis

Debt Level: QIP's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if QIP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: QIP's debt is well covered by operating cash flow (94.2%).

Interest Coverage: QIP's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: QIP has a low level of unsold assets or inventory.

Debt Coverage by Assets: QIP's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is QANTM Intellectual Property's current dividend yield, its reliability and sustainability?

7.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QIP's dividend (7.85%) is higher than the bottom 25% of dividend payers in the Australian market (3.37%).

High Dividend: QIP's dividend (7.85%) is low compared to the top 25% of dividend payers in the Australian market (8.57%).


Stability and Growth of Payments

Stable Dividend: QIP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: QIP's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.9%), QIP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QIP's dividends in 3 years are forecast to be covered by earnings (70.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Craig Dower

0.17

Tenure

Mr. Craig Russell Dower, FAICD, FAIM, MACS, serves as a Chief Executive Officer and Managing Director at QANTM Intellectual Property Limited since January 13, 2020. He served as Chief Executive Officer, Ma ...


Leadership Team

NamePositionTenureCompensationOwnership
Martin Cleaver
CFO & Company Secretary2.58yrsAU$499.33k0.0045% A$6.2k
Jern Chuah
Chief Executive Officer of Advanz Fidelis IP Sdn Bhdno dataAU$3.14m0.21% A$282.5k
James Cherry
Managing Principal of FPA3.58yrsAU$278.42k1.53% A$2.1m
David Webber
Patent Managing Principal of DCC3.58yrsAU$277.40k1.54% A$2.1m
Adam Sears
Trade Mark Managing Principal of DCC3.58yrsAU$274.74k1.55% A$2.1m
Christopher Jordan
Law Managing Principal of DCC3.58yrsAU$274.69k1.54% A$2.1m
Michael Wolnizer
DCC Group Managing Principalno dataAU$275.16k1.54% A$2.1m
Craig Dower
CEO & MD0.17yrno datano data
Shane Murphy
Chief Operating Officer2.67yrsno datano data
Hasaka Martin
Joint Company Secretary2.25yrsno datano data

3.1yrs

Average Tenure

Experienced Management: QIP's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Anthony England
Independent Non-Executive Chairman3.83yrsAU$193.33k0.10% A$139.5k
Cameron J. Judson
Independent Non-Executive Director3.75yrsAU$116.00k0.034% A$46.5k
Sonia Petering
Independent Non-Executive Director3.75yrsAU$116.00k0.034% A$46.5k
Abigail Cheadle
Independent Non-Executive Director3.75yrsAU$116.00k0.034% A$46.5k

3.8yrs

Average Tenure

Experienced Board: QIP's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

QANTM Intellectual Property Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QANTM Intellectual Property Limited
  • Ticker: QIP
  • Exchange: ASX
  • Founded: 1877
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$137.375m
  • Shares outstanding: 133.05m
  • Website: https://www.qantmip.com

Number of Employees


Location

  • QANTM Intellectual Property Limited
  • 1 Nicholson Street
  • Level 15
  • Melbourne
  • Victoria
  • 3002
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QIPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2016
QIPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2016
1Q0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2016

Biography

QANTM Intellectual Property Limited provides intellectual property services for start-up technology businesses, multinationals, public research institutions, and universities in Australia and internationally. The company also offers services related to patents, designs, and trademarks, as well as DCC, a litigation service in patent and trademark protection. QANTM Intellectual Property Limited was founded in 1877 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:57
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.