Executive Summary
Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 0.01% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
Share Price & News
How has Quarterhill's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QTRH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
QTRH
-1.0%
CA Communications
-0.6%
CA Market
1 Year Return
2.8%
QTRH
-6.6%
CA Communications
-7.7%
CA Market
Return vs Industry: QTRH exceeded the Canadian Communications industry which returned -6.6% over the past year.
Return vs Market: QTRH exceeded the Canadian Market which returned -7.7% over the past year.
Shareholder returns
| QTRH | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -1.0% | -0.6% |
| 30 Day | -0.5% | -4.5% | -1.1% |
| 90 Day | -12.0% | 3.9% | 5.6% |
| 1 Year | 5.9%2.8% | -4.7%-6.6% | -4.4%-7.7% |
| 3 Year | 21.3%10.8% | -12.1%-18.4% | 9.1%-1.5% |
| 5 Year | -9.8%-21.4% | 5.2%-7.4% | 44.6%22.4% |
Price Volatility Vs. Market
How volatile is Quarterhill's share price compared to the market and industry in the last 5 years?
Simply Wall St News
9 months ago | Simply Wall St
Quarterhill Inc. (TSE:QTRH) Investors Should Think About This Before Buying It For Its Dividend10 months ago | Simply Wall St
Introducing Quarterhill (TSE:QTRH), The Stock That Slid 54% In The Last Five Years11 months ago | Simply Wall St
Is Quarterhill Inc. (TSE:QTRH) Trading At A 43% Discount?Valuation
Is Quarterhill 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: QTRH (CA$1.84) is trading below our estimate of fair value (CA$5.15)
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 (23.5x) compared to the CA Communications industry average (33.3x).
PE vs Market: QTRH is poor value based on its PE Ratio (23.5x) compared to the Canadian market (16.8x).
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 (0.8x) compared to the CA Communications industry average (1.5x).
Next Steps
Future Growth
How is Quarterhill forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-0.01%
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 (-0.01% per year).
Earnings vs Market: QTRH's earnings are forecast to decline over the next 3 years (-0.01% 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 (-0.4% per year).
High Growth Revenue: QTRH's revenue is forecast to decline over the next 3 years (-0.4% 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
Next Steps
Past Performance
How has Quarterhill performed over the past 5 years?
-36.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QTRH has a large one-off gain of CA$1.2M impacting its June 30 2020 financial results.
Growing Profit Margin: QTRH became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: QTRH has become profitable over the past 5 years, growing earnings by -36.8% per year.
Accelerating Growth: QTRH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: QTRH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-24%).
Return on Equity
High ROE: QTRH's Return on Equity (3.2%) is considered low.
Next Steps
Financial Health
How is Quarterhill's financial position?
Financial Position Analysis
Short Term Liabilities: QTRH's short term assets (CA$180.3M) exceed its short term liabilities (CA$26.4M).
Long Term Liabilities: QTRH's short term assets (CA$180.3M) exceed its long term liabilities (CA$4.8M).
Debt to Equity History and Analysis
Debt Level: QTRH's debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: QTRH's debt to equity ratio has reduced from 14.2% to 2.6% over the past 5 years.
Debt Coverage: QTRH's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: QTRH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Quarterhill current dividend yield, its reliability and sustainability?
2.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: QTRH's dividend (2.72%) is higher than the bottom 25% of dividend payers in the Canadian market (1.73%).
High Dividend: QTRH's dividend (2.72%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).
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 not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (98.8%), QTRH's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Paul Hill (53 yo)
0.25
Tenure
Mr. Paul L. Hill has been President and Chief Executive Officer of Quarterhill Inc. since June 1, 2020 and also has been its Director since May 21, 2020. Mr. Hill served as the Chief Executive Officer of C ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim Chief Financial Officer | 0.92yr | CA$936.73k | no data | |
| Senior VP | 5.5yrs | CA$364.33k | 0.057% CA$ 121.6k | |
| President & CEO of New WiLAN | 1.58yrs | CA$390.48k | 0.10% CA$ 213.0k | |
| President | 0.25yr | no data | 0.17% CA$ 368.0k | |
| Senior Vice-President of Corporate Development | 2.58yrs | CA$529.51k | no data | |
| Interim President & CEO of VIZIYA | 0.83yr | no data | no data | |
| CEO & President of | 0.67yr | no data | 0.0092% CA$ 19.6k | |
| Senior Advisor to Board of Directors | 6.25yrs | CA$83.08k | no data |
1.3yrs
Average Tenure
55yo
Average Age
Experienced Management: QTRH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.25yr | no data | 0.17% CA$ 368.0k | |
| Independent Director | 13.42yrs | CA$100.60k | 0.049% CA$ 104.4k | |
| Independent Director | 5.33yrs | CA$97.60k | 0.033% CA$ 70.2k | |
| Independent Chairman | 1.42yrs | CA$171.65k | 0.10% CA$ 212.3k | |
| Director | 0.33yr | CA$29.69k | 1.67% CA$ 3.5m | |
| Vice Chairman of the Board | 1.42yrs | CA$338.81k | 0.39% CA$ 830.8k | |
| Independent Director | 10.25yrs | CA$124.05k | 0.056% CA$ 119.2k | |
| Independent Director | 5.33yrs | CA$93.00k | 0.086% CA$ 182.0k |
3.4yrs
Average Tenure
63yo
Average Age
Experienced Board: QTRH's board of directors are considered experienced (3.4 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
Quarterhill Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Quarterhill Inc.
- Ticker: QTRH
- Exchange: TSX
- Founded: 1992
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: CA$212.243m
- Shares outstanding: 115.35m
- Website: https://www.quarterhill.com
Number of Employees
Location
- Quarterhill Inc.
- 30 Duke Street West
- Suite 604
- Kitchener
- Ontario
- N2H 3W5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| QTRH | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 1998 |
| WJL | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 1998 |
| QTRH.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Mar 1998 |
Biography
Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology Licensing segment includes patents relating to 3D television, se ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/22 06:07 |
| End of Day Share Price | 2020/09/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.