AIM:QTX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Quartix Holdings plc designs, develops, markets, and delivers vehicle telematics services in the United Kingdom, France, Ireland, Poland, Spain, Italy, Germany, and the United States. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has Quartix Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: QTX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

7.1%

QTX

-6.2%

GB Software

-0.3%

GB Market


1 Year Return

17.4%

QTX

-13.1%

GB Software

-11.0%

GB Market

Return vs Industry: QTX exceeded the UK Software industry which returned -13.1% over the past year.

Return vs Market: QTX exceeded the UK Market which returned -11% over the past year.


Shareholder returns

QTXIndustryMarket
7 Day7.1%-6.2%-0.3%
30 Day15.3%-7.1%10.2%
90 Day11.4%-13.9%6.4%
1 Year18.5%17.4%-7.9%-13.1%-7.4%-11.0%
3 Year19.7%8.9%-29.6%-38.2%0.9%-11.5%
5 Year76.2%52.8%17.9%-2.8%26.5%-2.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QTX (£3.92) is trading above our estimate of fair value (£1.79)

Significantly Below Fair Value: QTX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QTX is good value based on its PE Ratio (30.5x) compared to the GB Software industry average (36.7x).

PE vs Market: QTX is poor value based on its PE Ratio (30.5x) compared to the UK market (20.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: QTX is overvalued based on its PB Ratio (8.8x) compared to the GB Software industry average (3.5x).


Next Steps

Future Growth

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

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTX's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: QTX's earnings are forecast to decline over the next 3 years (-5.4% per year).

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

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

High Growth Revenue: QTX'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 QTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quartix Holdings performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QTX has high quality earnings.

Growing Profit Margin: QTX's current net profit margins (23.6%) are lower than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: QTX's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: QTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QTX had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Software industry average (-3.2%).


Return on Equity

High ROE: QTX's Return on Equity (28.7%) is considered high.


Next Steps

Financial Health

How is Quartix Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: QTX's short term assets (£14.8M) exceed its short term liabilities (£8.1M).

Long Term Liabilities: QTX's short term assets (£14.8M) exceed its long term liabilities (£915.0K).


Debt to Equity History and Analysis

Debt Level: QTX is debt free.

Reducing Debt: QTX has no debt compared to 5 years ago when its debt to equity ratio was 11.3%.

Debt Coverage: QTX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: QTX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QTX's dividend (3.16%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: QTX's dividend (3.16%) is low compared to the top 25% of dividend payers in the UK market (5.01%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, QTX has been paying a dividend for less than 10 years.

Growing Dividend: QTX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.1%), QTX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QTX's dividends in 3 years are not forecast to be well covered by earnings (105% payout ratio).


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Andy Walters (64 yo)

no data

Tenure

UK£91,080

Compensation

Mr. Andrew Walters, also knwon as Andy, serves as Chief Executive Officer of Quartix Holdings plc and has been its Executive Director since May 1, 2002 and also serves as its Managing Director. Mr. Walters...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD121.40K) is below average for companies of similar size in the UK market ($USD620.37K).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Andrew Walters
CEO, MD & Executive Directorno dataUK£91.08k21.33%
£ 39.5m
Daniel Mendis
Chief Operating & Financial Officer2.83yrsUK£122.21kno data
Laura Seffino
CTO & Director1.08yrsUK£107.45kno data
Paul Boughton
Independent Non-Executive Chairman6yrsUK£50.00k0.11%
£ 208.0k
David Warwick
Independent Non-Executive Director6.5yrsUK£40.00k0.15%
£ 283.1k

6.0yrs

Average Tenure

55yo

Average Age

Experienced Board: QTX's board of directors are considered experienced (6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Quartix Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quartix Holdings plc
  • Ticker: QTX
  • Exchange: AIM
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£185.135m
  • Shares outstanding: 47.96m
  • Website: https://www.quartix.net

Number of Employees


Location

  • Quartix Holdings plc
  • 9 Dukes Court
  • 44~62 Newmarket Road
  • Cambridge
  • Cambridgeshire
  • CB5 8DZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QTXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2014

Biography

Quartix Holdings plc designs, develops, markets, and delivers vehicle telematics services in the United Kingdom, France, Ireland, Poland, Spain, Italy, Germany, and the United States. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 19:36
End of Day Share Price2020/11/27 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.