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QTRH

Quarterhill TSX:QTRH Stock Report

Last Price

CA$2.20

Market Cap

CA$254.5m

7D

2.3%

1Y

-6.8%

Updated

16 May, 2022

Data

Company Financials +
QTRH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends2/6

QTRH Stock Overview

Quarterhill Inc. operates in the intelligent transportation system and intellectual property licensing industries worldwide.

Quarterhill Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Quarterhill
Historical stock prices
Current Share PriceCA$2.20
52 Week HighCA$2.98
52 Week LowCA$2.03
Beta0.28
1 Month Change-9.84%
3 Month Change-5.58%
1 Year Change-6.78%
3 Year Change51.72%
5 Year Change14.58%
Change since IPO-13.73%

Recent News & Updates

May 13
Analysts Are Betting On Quarterhill Inc. (TSE:QTRH) With A Big Upgrade This Week

Analysts Are Betting On Quarterhill Inc. (TSE:QTRH) With A Big Upgrade This Week

Shareholders in Quarterhill Inc. ( TSE:QTRH ) may be thrilled to learn that the analysts have just delivered a major...

Shareholder Returns

QTRHCA CommunicationsCA Market
7D2.3%9.3%0.8%
1Y-6.8%-5.3%4.3%

Return vs Industry: QTRH underperformed the Canadian Communications industry which returned -4.5% over the past year.

Return vs Market: QTRH underperformed the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is QTRH's price volatile compared to industry and market?
QTRH volatility
QTRH Average Weekly Movement6.2%
Communications Industry Average Movement8.5%
Market Average Movement9.7%
10% most volatile stocks in CA Market16.6%
10% least volatile stocks in CA Market4.2%

Stable Share Price: QTRH is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: QTRH's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992562Bret Kiddhttps://www.quarterhill.com

Quarterhill Inc. operates in the intelligent transportation system and intellectual property licensing industries worldwide. Its Licensing segment includes patents relating to wireless communications, memory interface technologies, semiconductor manufacturing and packaging technologies, wired connectivity, automotive applications, computer gaming, intelligent personal assistant technologies, enhanced image processing, streaming video technologies, non-volatile Flash memory, DRAM and other memory technologies, and semiconductor analog circuitry technologies. The company's Intelligent Systems segment provides international road dynamics products and services, such as red light and speed enforcement systems, automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification services and equipment, and other hardware and software products and offerings for the intelligent transportation systems industry.

Quarterhill Fundamentals Summary

How do Quarterhill's earnings and revenue compare to its market cap?
QTRH fundamental statistics
Market CapCA$254.52m
Earnings (TTM)CA$39.01m
Revenue (TTM)CA$274.88m

6.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
QTRH income statement (TTM)
RevenueCA$274.88m
Cost of RevenueCA$151.41m
Gross ProfitCA$123.47m
Other ExpensesCA$84.47m
EarningsCA$39.01m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin44.92%
Net Profit Margin14.19%
Debt/Equity Ratio36.5%

How did QTRH perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

15%

Payout Ratio

Does QTRH pay a reliable dividends?

See QTRH dividend history and benchmarks
When do you need to buy QTRH by to receive an upcoming dividend?
Quarterhill dividend dates
Ex Dividend DateJun 16 2022
Dividend Pay DateJul 08 2022
Days until Ex dividend29 days
Days until Dividend pay date51 days

Does QTRH pay a reliable dividends?

See QTRH dividend history and benchmarks

Valuation

Is Quarterhill undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: QTRH (CA$2.2) is trading below our estimate of fair value (CA$7.83)

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


Price To Earnings Ratio

PE vs Industry: QTRH is good value based on its PE Ratio (6.4x) compared to the Canadian Communications industry average (36.9x).

PE vs Market: QTRH is good value based on its PE Ratio (6.4x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: QTRH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: QTRH is good value based on its PB Ratio (0.9x) compared to the CA Communications industry average (2.6x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-78.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTRH's earnings are forecast to decline over the next 3 years (-78.6% per year).

Earnings vs Market: QTRH's earnings are forecast to decline over the next 3 years (-78.6% per year).

High Growth Earnings: QTRH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: QTRH's revenue is expected to decline over the next 3 years (-11.7% per year).

High Growth Revenue: QTRH's revenue is forecast to decline over the next 3 years (-11.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Quarterhill performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QTRH has a high level of non-cash earnings.

Growing Profit Margin: QTRH's current net profit margins (14.2%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: QTRH has become profitable over the past 5 years, growing earnings by 7.7% per year.

Accelerating Growth: QTRH's earnings growth over the past year (668.9%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: QTRH earnings growth over the past year (668.9%) exceeded the Communications industry 38.2%.


Return on Equity

High ROE: QTRH's Return on Equity (13.3%) is considered low.


Financial Health

How is Quarterhill's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: QTRH's short term assets (CA$269.0M) exceed its short term liabilities (CA$92.2M).

Long Term Liabilities: QTRH's short term assets (CA$269.0M) exceed its long term liabilities (CA$125.3M).


Debt to Equity History and Analysis

Debt Level: QTRH's net debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: QTRH's debt to equity ratio has increased from 9.3% to 36.5% over the past 5 years.

Debt Coverage: QTRH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: QTRH's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.27%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateJun 16 2022Dividend Pay DateJul 08 202222 days from Ex DividendBuy in the next 29 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: QTRH's dividend (2.27%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: QTRH's dividend (2.27%) is low compared to the top 25% of dividend payers in the Canadian market (5.01%).


Stability and Growth of Payments

Stable Dividend: QTRH's dividend payments have been volatile in the past 10 years.

Growing Dividend: QTRH's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.6%), QTRH's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: QTRH is paying a dividend but the company has no free cash flows.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Bret Kidd (53 yo)

0.42

Tenure

CA$3,612,745

Compensation

Mr. Bret Kidd has been President and Chief Executive Officer at Quarterhill Inc. since December 15, 2021 and has been its Director since December 17, 2021. He had been Chief Executive Officer of Electronic...


CEO Compensation Analysis

Compensation vs Market: Bret's total compensation ($USD2.80M) is above average for companies of similar size in the Canadian market ($USD645.56K).

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


Leadership Team

Experienced Management: QTRH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: QTRH's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

Quarterhill Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Quarterhill Inc.
  • Ticker: QTRH
  • Exchange: TSX
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: CA$254.523m
  • Shares outstanding: 114.14m
  • Website: https://www.quarterhill.com

Number of Employees


Location

  • Quarterhill Inc.
  • 25 King Street West
  • Suite 1101
  • Toronto
  • Ontario
  • M5L 2A1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.