Q4 (TSX:QFOR) - Share price, News & Analysis

QFOR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

QFOR Stock Overview

Q4 Inc. provides a capital markets communications platform for publicly listed companies, investment managers, and investment banks in Canada, the United States, Europe, and internationally.

Rewards

Revenue is forecast to grow 19.39% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Q4 Competitors

BYND Cannasoft Enterprises

CNSX:BYND

CA$178.0m

Tenet Fintech Group

CNSX:PKK

CA$148.2m

WeCommerce Holdings

TSXV:WE

CA$153.7m

Optiva

TSX:OPT

CA$148.3m

Price History & Performance

Summary of all time highs, changes and price drops for Q4
Historical stock prices
Current Share Price	CA$4.43
52 Week High	CA$12.05
52 Week Low	CA$4.03
Beta	0
1 Month Change	-6.34%
3 Month Change	-11.40%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-61.55%

Recent News & Updates

Jun 17

Q4 (TSE:QFOR) Is In A Good Position To Deliver On Growth Plans

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...

Shareholder Returns

	QFOR	CA Software	CA Market
7D	1.4%	5.7%	0.1%
1Y	n/a	-26.5%	-2.6%

Return vs Industry: Insufficient data to determine how QFOR performed against the Canadian Software industry.

Return vs Market: Insufficient data to determine how QFOR performed against the Canadian Market.

Price Volatility

Is QFOR's price volatile compared to industry and market?
QFOR volatility
QFOR Average Weekly Movement	7.0%
Software Industry Average Movement	12.8%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: QFOR is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: QFOR's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	394	Darrell Heaps	https://www.q4inc.com

Q4 Inc. provides a capital markets communications platform for publicly listed companies, investment managers, and investment banks in Canada, the United States, Europe, and internationally. The company’s technology platform facilitates interactions with capital markets through its investor relations website, virtual events, customer relationship management (CRM) solution, and shareholder and market analytics tools. Its investor relation website consist of investor relations, newsroom, corporate websites, and newswire integration; virtual events solutions include earnings calls, investor day, conferences, virtual NDR, and 1-on-1 meetings; capital markets CRM solution, which comprises contact database, targeting workflow, board reporting, web and even analytics, and market intelligence; and shareholder and market analytics tools comprise activism monitoring, capital flows, options intelligence, shareholder identifications, mutual fund updates, and settlement analytics.

Q4 Fundamentals Summary

How do Q4's earnings and revenue compare to its market cap?
QFOR fundamental statistics
Market Cap	US$136.35m
Earnings (TTM)	-US$19.94m
Revenue (TTM)	US$58.01m

2.4x

P/S Ratio

-6.8x

P/E Ratio

Is QFOR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
QFOR income statement (TTM)
Revenue	US$58.01m
Cost of Revenue	US$24.58m
Gross Profit	US$33.43m
Other Expenses	US$53.37m
Earnings	-US$19.94m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.50
Gross Margin	57.63%
Net Profit Margin	-34.38%
Debt/Equity Ratio	0%

How did QFOR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is QFOR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QFOR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for QFOR. This is calculated by dividing QFOR's market cap by their current preferred multiple.
What is QFOR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$136.35m

QFOR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	-4.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does QFOR's PS Ratio compare to its peers?

QFOR PS Ratio vs Peers

The above table shows the PS ratio for QFOR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	32.8x
BYND BYND Cannasoft Enterprises	124.6x	n/a	CA$178.0m
PKK Tenet Fintech Group	1.2x	65.2%	CA$148.2m
WE WeCommerce Holdings	3.4x	21.3%	CA$153.7m
OPT Optiva	1.8x	6.1%	CA$148.3m
QFOR Q4	2.4x	19.4%	CA$175.5m

Forward PS

Price-To-Sales vs Peers: QFOR is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (32.8x).

Price to Earnings Ratio vs Industry

How does QFOR's PE Ratio compare vs other companies in the CA Software Industry?

Price-To-Sales vs Industry: QFOR is good value based on its Price-To-Sales Ratio (2.4x) compared to the Canadian Software industry average (3.9x)

Price to Sales Ratio vs Fair Ratio

What is QFOR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QFOR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.4x
Fair PS Ratio	2.3x

Price-To-Sales vs Fair Ratio: QFOR is expensive based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

Share Price vs Fair Value

What is the Fair Price of QFOR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate QFOR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate QFOR's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QFOR's PEG Ratio to determine if it is good value.

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Future Growth

How is Q4 forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: QFOR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: QFOR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: QFOR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: QFOR's revenue (19.4% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: QFOR's revenue (19.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if QFOR's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Q4 performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-29.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QFOR is currently unprofitable.

Growing Profit Margin: QFOR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: QFOR is unprofitable, and losses have increased over the past 5 years at a rate of 29.5% per year.

Accelerating Growth: Unable to compare QFOR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QFOR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (7.6%).

Return on Equity

High ROE: QFOR has a negative Return on Equity (-27.6%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Q4's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: QFOR's short term assets ($71.9M) exceed its short term liabilities ($21.2M).

Long Term Liabilities: QFOR's short term assets ($71.9M) exceed its long term liabilities ($8.4M).

Debt to Equity History and Analysis

Debt Level: QFOR is debt free.

Reducing Debt: QFOR had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: QFOR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: QFOR has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 35.2% each year

Discover healthy companies

Dividend

What is Q4 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate QFOR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate QFOR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if QFOR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if QFOR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as QFOR has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure

CEO

Darrell Heaps (48 yo)

16.5yrs

Tenure

US$559,643

Compensation

Mr. Darrell F. Heaps co-founded Q4 Inc. in 2005 and serves as its Chief Executive Officer, Director and President since December 2005. Mr. Heaps is responsible for product and partnership strategies and fi...

CEO Compensation Analysis

Compensation vs Market: Darrell's total compensation ($USD559.64K) is above average for companies of similar size in the Canadian market ($USD175.18K).

Compensation vs Earnings: Insufficient data to compare Darrell's compensation with company performance.

Leadership Team

Experienced Management: QFOR's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: QFOR'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: QFOR insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: QFOR only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31