AIM:QTX

Stock Analysis Report

Executive Summary

Quartix Holdings plc designs, develops, markets, and delivers vehicle telematics services in the United Kingdom, France, the Republic of Ireland, and the United States.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

-4.8%

QTX

0.7%

GB Software

0.2%

GB Market


1 Year Return

32.4%

QTX

6.3%

GB Software

1.7%

GB Market

Return vs Industry: QTX exceeded the UK Software industry which returned 6.3% over the past year.

Return vs Market: QTX exceeded the UK Market which returned 1.7% over the past year.


Shareholder returns

QTXIndustryMarket
7 Day-4.8%0.7%0.2%
30 Day-6.0%1.5%-1.7%
90 Day10.9%-9.3%-3.1%
1 Year38.7%32.4%12.5%6.3%6.7%1.7%
3 Year-8.0%-18.2%5.6%-11.9%17.7%3.1%
5 Yearn/a68.4%35.1%36.1%5.5%

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?

23.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QTX (£3.15) is trading above our estimate of fair value (£1.84)

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 (23.9x) compared to the Software industry average (27.5x).

PE vs Market: QTX is poor value based on its PE Ratio (23.9x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: QTX is poor value based on its PEG Ratio (7.9x)


Price to Book Ratio

PB vs Industry: QTX is overvalued based on its PB Ratio (9.8x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

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

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QTX's forecast earnings growth (3% per year) is above the savings rate (1.2%).

Earnings vs Market: QTX's earnings (3% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: QTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: QTX's revenue (3.4% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: QTX's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QTX's Return on Equity is forecast to be high in 3 years time (35.3%)


Next Steps

Past Performance

How has Quartix Holdings performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QTX's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: QTX's earnings growth over the past year (7.3%) is below its 5-year average (10% per year).

Earnings vs Industry: QTX earnings growth over the past year (7.3%) exceeded the Software industry 7%.


Return on Equity

High ROE: QTX's Return on Equity (40.9%) is considered outstanding.


Return on Assets

ROA vs Industry: QTX has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: QTX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Quartix Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: QTX's short term assets (£9.0M) exceeds its short term liabilities (£8.0M)

Long Term Liabilities: QTX's short term assets (9.0M) exceeds its long term liabilities (324.0K)


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 14.2%.

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

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

Debt Coverage by Assets: QTX's debt is covered by short term assets (assets are 161589154630052892.950520x debt).


Next Steps

Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QTX's dividend (3.94%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: QTX's dividend (3.94%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.1%), QTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QTX's dividends in 3 years are forecast to be covered by earnings (87.8% payout ratio).


Next Steps

Management

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

5.2yrs

Average board tenure


CEO

Andy Walters (63yo)

0yrs

Tenure

UK£87,182

Compensation

Mr. Andrew Walters, also knwon as Andy, Co-Founded Quartix Holdings plc in 2001 and has been its Chief Operating Officer since October 31, 2018. Mr. Walters serves as Chief Executive Officer of Quartix Hol ...


CEO Compensation Analysis

Compensation vs. Market: Andy's total compensation ($USD113.15K) is about average for companies of similar size in the UK market ($USD654.14K).

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


Board Age and Tenure

5.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: QTX's board of directors are considered experienced (5.2 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.


Ownership Breakdown


Management Team

  • Andy Walters (63yo)

    CEO, COO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£87.18k
  • Daniel Mendis (36yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£99.44k

Board Members

  • Paul Boughton (63yo)

    Non-Executive Chairman

    • Tenure: 4.9yrs
    • Compensation: UK£50.00k
  • Jim Warwick (54yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£40.00k
  • Andy Walters (63yo)

    CEO, COO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£87.18k
  • Daniel Mendis (36yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£99.44k

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£148.609m
  • Shares outstanding: 47.94m
  • 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, the Republic of Ireland, and the United States. It offers vehicle tracking devices,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:41
End of Day Share Price2019/10/21 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.