DB:WJL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent 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: WJL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.8%

WJL

-8.3%

DE Communications

-1.6%

DE Market


1 Year Return

50.9%

WJL

-4.0%

DE Communications

2.6%

DE Market

Return vs Industry: WJL exceeded the German Communications industry which returned -0.8% over the past year.

Return vs Market: WJL exceeded the German Market which returned 3.9% over the past year.


Shareholder returns

WJLIndustryMarket
7 Day25.8%-8.3%-1.6%
30 Day44.3%-8.6%-0.9%
90 Day27.7%-10.1%-1.1%
1 Year55.5%50.9%-3.7%-4.0%5.8%2.6%
3 Year17.8%7.7%16.8%15.7%2.8%-6.2%
5 Year13.0%-1.7%-13.3%-13.4%23.8%6.1%

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

No news available

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: WJL (€1.66) is trading below our estimate of fair value (€3.63)

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


Price To Earnings Ratio

PE vs Industry: WJL is poor value based on its PE Ratio (30.6x) compared to the XE Communications industry average (22.6x).

PE vs Market: WJL is poor value based on its PE Ratio (30.6x) compared to the German market (22.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WJL is good value based on its PB Ratio (1x) compared to the DE Communications industry average (3x).


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: WJL's earnings are forecast to decline over the next 3 years (-0.01% per year).

Earnings vs Market: WJL's earnings are forecast to decline over the next 3 years (-0.01% per year).

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

Revenue vs Market: WJL's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: WJL's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WJL'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: WJL has a large one-off gain of CA$1.2M impacting its June 30 2020 financial results.

Growing Profit Margin: WJL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WJL has become profitable over the past 5 years, growing earnings by -36.8% per year.

Accelerating Growth: WJL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WJL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (2.4%).


Return on Equity

High ROE: WJL'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: WJL's short term assets (CA$180.3M) exceed its short term liabilities (CA$26.4M).

Long Term Liabilities: WJL's short term assets (CA$180.3M) exceed its long term liabilities (CA$4.8M).


Debt to Equity History and Analysis

Debt Level: WJL's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: WJL's debt to equity ratio has reduced from 14.2% to 2.6% over the past 5 years.

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

Interest Coverage: WJL 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?

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WJL's dividend (2.08%) is higher than the bottom 25% of dividend payers in the German market (1.18%).

High Dividend: WJL's dividend (2.08%) is low compared to the top 25% of dividend payers in the German market (3.71%).


Stability and Growth of Payments

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

Growing Dividend: WJL's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (98.8%), WJL'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?

1.7yrs

Average management tenure


CEO

Paul Hill (53 yo)

0.33

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

NamePositionTenureCompensationOwnership
Prashant Watchmaker
Senior VP5.58yrsCA$364.33k0.058%
CA$ 102.3k
Michael Vladescu
President & CEO of New WiLAN1.67yrsCA$390.48k0.10%
CA$ 179.2k
Paul Hill
President0.33yrno data0.17%
CA$ 309.6k
John Rim
Chief Financial Officerno datano datano data
Russ Stuebing
Senior Vice-President of Corporate Development2.67yrsCA$529.51kno data
Paul Sunderland
Interim President & CEO of VIZIYA0.92yrno datano data
Rish Malhotra
CEO & President of0.75yrno data0.0093%
CA$ 16.5k
Paul Richman
Senior Advisor to Board of Directors6.33yrsCA$83.08kno data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: WJL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Hill
President0.33yrno data0.17%
CA$ 309.6k
Richard Shorkey
Independent Director13.5yrsCA$100.60k0.049%
CA$ 87.8k
Ronald Laurie
Independent Director5.42yrsCA$97.60k0.033%
CA$ 59.1k
John Gillberry
Independent Chairman1.5yrsCA$171.65k0.10%
CA$ 178.6k
Michel Fattouche
Director0.42yrCA$29.69k1.68%
CA$ 3.0m
James Skippen
Vice Chairman of the Board1.5yrsCA$338.81k0.39%
CA$ 699.0k
W. McCarten
Independent Director10.33yrsCA$124.05k0.057%
CA$ 100.3k
Roxanne Anderson
Independent Director5.42yrsCA$93.00k0.086%
CA$ 153.1k

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: WJL's board of directors are considered experienced (3.5 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: WJL
  • Exchange: DB
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$275.021m
  • Listing Market Cap: CA$177.413m
  • Shares outstanding: 114.59m
  • 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
QTRH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 21:22
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.