TSX:QTRH

Stock Analysis Report

Executive Summary

Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide.


Snowflake Analysis

Flawless balance sheet and fair 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

-6.6%

QTRH

-0.6%

CA Communications

-1.4%

CA Market


1 Year Return

26.9%

QTRH

-3.9%

CA Communications

8.6%

CA Market

Return vs Industry: QTRH exceeded the Canadian Communications industry which returned -3.9% over the past year.

Return vs Market: QTRH exceeded the Canadian Market which returned 8.6% over the past year.


Shareholder returns

QTRHIndustryMarket
7 Day-6.6%-0.6%-1.4%
30 Day-1.7%-2.6%0.4%
90 Day-9.1%1.2%0.9%
1 Year31.2%26.9%-3.3%-3.9%12.2%8.6%
3 Year-10.1%-17.5%-4.5%-6.5%14.9%4.6%
5 Year-43.0%-51.4%-32.9%-35.1%38.2%17.9%

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

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$1.7) is trading below our estimate of fair value (CA$4.21)

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


Price To Earnings Ratio

PE vs Industry: QTRH is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: QTRH is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: QTRH is good value based on its PB Ratio (0.7x) compared to the CA Communications industry average (1.3x).


Next Steps

Future Growth

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

81.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTRH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: QTRH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: QTRH's is expected to become profitable in the next 3 years.

Revenue vs Market: QTRH's revenue is expected to decline over the next 3 years (-19.1% per year).

High Growth Revenue: QTRH's revenue is forecast to decline over the next 3 years (-19.1% 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?

-57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QTRH is currently unprofitable.

Growing Profit Margin: QTRH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QTRH is unprofitable, and losses have increased over the past 5 years at a rate of -57.9% per year.

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

Earnings vs Industry: QTRH is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (17.3%).


Return on Equity

High ROE: QTRH has a negative Return on Equity (-7.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Quarterhill's financial position?


Financial Position Analysis

Short Term Liabilities: QTRH's short term assets ($104.3M) exceed its short term liabilities ($27.2M).

Long Term Liabilities: QTRH's short term assets ($104.3M) exceed its long term liabilities ($7.1M).


Debt to Equity History and Analysis

Debt Level: QTRH's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: QTRH's debt to equity ratio has reduced from 20.2% to 1.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: QTRH's debt is covered by short term assets (assets are 26.3x debt).


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: Whilst unprofitable QTRH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: QTRH is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -24.7% per year.


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Quarterhill before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: QTRH's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: QTRH's dividend (2.92%) is low compared to the top 25% of dividend payers in the Canadian market (5.71%).


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.


Current Payout to Shareholders

Dividend Coverage: QTRH is paying a dividend but the company is unprofitable.


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

What is the CEO of Quarterhill's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Quarterhill has no CEO, or we have no data on them.


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: QTRH's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

67yo

Average Age

Experienced Board: QTRH's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$102,00027 Mar 19
Roxanne Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares75,000
Max PriceUS$1.36
BuyUS$7,50012 Mar 19
James Skippen
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares5,000
Max PriceUS$1.50
BuyUS$11,52011 Mar 19
James Skippen
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares8,000
Max PriceUS$1.44
BuyUS$17,73406 Mar 19
James Skippen
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares12,600
Max PriceUS$1.41
BuyUS$9,80006 Mar 19
Douglas Parker
EntityIndividual
Shares7,000
Max PriceUS$1.40
BuyUS$17,61004 Mar 19
James Skippen
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares13,000
Max PriceUS$1.36

Ownership Breakdown

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


Management Team

  • Randy Hanson

    President & CEO of International Road Dynamics

    • Tenure: 1.4yrs
  • Michael Vladescu

    President & CEO of New WiLAN

    • Tenure: 0.8yrs
    • Compensation: US$710.20k
  • Michael McEwan

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$579.65k
  • David Cortens

    Interim Chief Financial Officer

    • Tenure: 0.2yrs
  • Prashant Watchmaker

    Senior VP

    • Tenure: 4.8yrs
    • Compensation: US$418.94k
  • Russ Stuebing (54yo)

    Senior Vice-President of Corporate Development

    • Tenure: 1.8yrs
    • Compensation: US$529.51k
  • Neil Urquhart

    Senior Vice-President of Human Resources

    • Tenure: 0yrs

Board Members

  • Rick Shorkey (72yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$94.03k
  • Ron Laurie (77yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$88.31k
  • John Gillberry (62yo)

    Independent Chairman

    • Tenure: 0.7yrs
    • Compensation: US$90.23k
  • Jim Skippen (56yo)

    Vice Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$727.62k
  • W. McCarten (74yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$143.19k
  • Roxanne Anderson (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$83.22k

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$206.742m
  • Shares outstanding: 118.82m
  • Website: https://www.quarterhill.com

Number of Employees


Location

  • Quarterhill Inc.
  • 30 Duke Street West
  • Suite 604
  • Kitchener
  • Ontario
  • N2H 3W5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QTRHTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1998
WJLDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1998
QTRHNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMar 1998

Biography

Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Licensing segment includes patents relating to 3D television, semiconductor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:46
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.