DB:VDU

Stock Analysis Report

Executive Summary

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management for the public safety, insurance, justice, and governmental/agency markets in Australia, the United States, the United Kingdom, Canada, and internationally.

Snowflake

Fundamentals

Limited growth with weak fundamentals.

Share Price & News

How has VIQ Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.5%

VDU

-14.4%

DE IT

1.4%

DE Market


1 Year Return

-40.0%

VDU

-22.6%

DE IT

3.8%

DE Market

Return vs Industry: VDU underperformed the German IT industry which returned -22.6% over the past year.

Return vs Market: VDU underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

VDUIndustryMarket
7 Day6.5%-14.4%1.4%
30 Day-10.2%-16.8%1.3%
90 Day-22.4%-18.5%3.1%
1 Year-40.0%-40.0%-22.3%-22.6%7.0%3.8%
3 Year-56.2%-56.2%112.8%107.2%18.5%8.3%
5 Yearn/a255.4%240.2%42.2%22.9%

Price Volatility Vs. Market

How volatile is VIQ Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

14.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VDU's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VDU's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VDU is overvalued based on its PB Ratio (14.1x) compared to the DE IT industry average (3.7x).


Next Steps

Future Growth

How is VIQ Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

43.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VDU's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if VDU's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VDU's revenue (43.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: VDU's revenue (43.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has VIQ Solutions performed over the past 5 years?

-45.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VDU is unprofitable, and losses have increased over the past 5 years at a rate of -45.6% per year.

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

Earnings vs Industry: VDU is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (22.7%).


Return on Equity

High ROE: VDU has a negative Return on Equity (-741.95%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VDU is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VDU is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is VIQ Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: VDU's short term assets ($5.5M) do not cover its short term liabilities ($10.4M)

Long Term Liabilities: VDU's short term assets (5.5M) do not cover its long term liabilities (10.5M)


Debt to Equity History and Analysis

Debt Level: VDU's debt to equity ratio (1472.3%) is considered high

Reducing Debt: VDU's debt to equity ratio has increased from 32.6% to 1472.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VDU's debt is not covered by short term assets (assets are 0.3x 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: VDU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VDU has less than a year of cash runway if free cash flow continues to reduce at historical rates of -48.5% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VDU's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Sebastien Pare 0

4.8yrs

Tenure

US$472,200

Compensation

Mr. Sebastien Pare has been the Chief Executive Officer and President of VIQ Solutions Inc. since January 2015 and August 1, 2014 respectively. Mr. Pare has over 17 years of diverse and valuable experience ...


CEO Compensation Analysis

Compensation vs. Market: Sebastien 's total compensation ($USD359.52K) is about average for companies of similar size in the German market ($USD216.74K).

Compensation vs Earnings: Sebastien 's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: VDU's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

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


Insider Trading

Insider Buying: VDU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$68411 Oct 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$0.068
BuyUS$86625 Sep 19
Gilles-André Morin
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares11,000
Max PriceUS$0.079
BuyUS$93321 Aug 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares12,500
Max PriceUS$0.075
BuyUS$7,76221 Aug 19
Alexie Edwards
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares100,000
Max PriceUS$0.078
BuyUS$65416 Jul 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares8,000
Max PriceUS$0.082
BuyUS$79824 May 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$0.08
BuyUS$90009 May 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,500
Max PriceUS$0.086
BuyUS$47820 Apr 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares6,000
Max PriceUS$0.08
BuyUS$2,26816 Apr 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares28,500
Max PriceUS$0.08
BuyUS$83405 Feb 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$0.083
BuyUS$90723 Jan 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$0.091
BuyUS$20118 Nov 18
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,000
Max PriceUS$0.10

Ownership Breakdown


Management Team

  • Malcolm MacAllum

    Chief Innovation Officer

    • Tenure: 0.8yrs
    • Compensation: US$204.00k
  • Tony Incardona

    Senior Vice President of Global Sales & Business Development

    • Tenure: 0.2yrs
  • Sebastien Pare

    President

    • Tenure: 4.8yrs
    • Compensation: US$472.20k
  • Susan Sumner

    Chief Operating Officer

    • Tenure: 1.1yrs
  • Laura Haggard

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Gilles-André Morin

    Chief Information Officer

    • Tenure: 0.8yrs
  • Alexie Edwards

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Harvey Gordon (69yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$24.00k
  • Joe Quarin (53yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$24.00k
  • Larry Taylor

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$30.00k
  • Mike Kessel

    Director

    • Tenure: 2.1yrs
    • Compensation: US$24.00k
  • Sebastien Pare

    President

    • Tenure: 4.8yrs
    • Compensation: US$472.20k

Company Information

VIQ Solutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VIQ Solutions Inc.
  • Ticker: VDU
  • Exchange: DB
  • Founded: 2004
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$22.426m
  • Listing Market Cap: CA$15.328m
  • Shares outstanding: 213.58m
  • Website: https://www.viqsolutions.com

Location

  • VIQ Solutions Inc.
  • 5915 Airport Road
  • Suite 700
  • Mississauga
  • Ontario
  • L4V 1T1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VQSTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 2005
VQSL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2005
VDUDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2005

Biography

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management for the public safety, insurance, justice, and governmental/agency  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.