QWI Investments (JMSE:QWI) - Share price, News & Analysis

Q: What is the Fair Price of QWI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

QWI (JMD0.82) is trading below our estimate of [[fair value]] (JMD1.12)

QWI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	3/6
Dividends	2/6

QWI Stock Overview

QWI Investments Limited specialized in private equity investment.

Rewards

Trading at 27% below our estimate of its fair value

Risk Analysis

Revenue has declined by 81.1% over the past year

Dividend of 8.54% is not well covered by earnings or forecast to be in the next 3 years

Makes less than USD$1m in revenue (JMD101M)

Does not have a meaningful market cap (JMD1B)

+ 1 more risk

QWI Investments Competitors

Sterling Investments

JMSE:SIL

JA$1.2b

Sagicor Select Funds

JMSE:SELECTF

JA$2.4b

Portland JSX

JMSE:PJX

JA$3.1b

MFS Capital Partners

JMSE:SSLVC

JA$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for QWI Investments
Historical stock prices
Current Share Price	JA$0.82
52 Week High	JA$1.09
52 Week Low	JA$0.63
Beta	0.11
1 Month Change	-4.65%
3 Month Change	-7.87%
1 Year Change	-10.87%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-33.33%

Shareholder Returns

	QWI	JM Capital Markets	JM Market
7D	-3.5%	-1.8%	-2.1%
1Y	-10.9%	7.0%	-4.1%

Return vs Industry: QWI underperformed the JM Capital Markets industry which returned 7% over the past year.

Return vs Market: QWI underperformed the JM Market which returned -4.1% over the past year.

Price Volatility

Is QWI's price volatile compared to industry and market?
QWI volatility
QWI Average Weekly Movement	7.1%
Capital Markets Industry Average Movement	8.0%
Market Average Movement	9.4%
10% most volatile stocks in JM Market	17.6%
10% least volatile stocks in JM Market	5.5%

Stable Share Price: QWI is not significantly more volatile than the rest of JM stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: QWI's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2018	n/a	n/a	https://qwiinvestments.com

QWI Investments Limited specialized in private equity investment. It prefers to invest in quoted securities. It prefers to invest in consumer herbal product, business manufacturing and real estate.

QWI Investments Fundamentals Summary

How do QWI Investments's earnings and revenue compare to its market cap?
QWI fundamental statistics
Market Cap	JA$1.12b
Earnings (TTM)	JA$26.46m
Revenue (TTM)	JA$101.36m

42.3x

P/E Ratio

11.0x

P/S Ratio

Is QWI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
QWI income statement (TTM)
Revenue	JA$101.36m
Cost of Revenue	JA$0
Gross Profit	JA$101.36m
Other Expenses	JA$74.90m
Earnings	JA$26.46m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.019
Gross Margin	100.00%
Net Profit Margin	26.11%
Debt/Equity Ratio	20.2%

How did QWI perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

181%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is QWI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QWI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for QWI. This is calculated by dividing QWI's market cap by their current preferred multiple.
What is QWI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JA$1.12b

QWI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does QWI's PE Ratio compare to its peers?

QWI PE Ratio vs Peers

The above table shows the PE ratio for QWI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.6x
SIL Sterling Investments	8.3x	n/a	JA$1.2b
SELECTF Sagicor Select Funds	3x	n/a	JA$2.4b
PJX Portland JSX	4.3x	n/a	JA$3.1b
SSLVC MFS Capital Partners	6.8x	n/a	JA$1.4b
QWI QWI Investments	42.3x	n/a	JA$1.1b

Price-To-Earnings vs Peers: QWI is expensive based on its Price-To-Earnings Ratio (42.3x) compared to the peer average (5.6x).

Price to Earnings Ratio vs Industry

How does QWI's PE Ratio compare vs other companies in the South American Capital Markets Industry?

Price-To-Earnings vs Industry: QWI is expensive based on its Price-To-Earnings Ratio (42.3x) compared to the JM Capital Markets industry average (11x)

Price to Earnings Ratio vs Fair Ratio

What is QWI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QWI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	42.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate QWI's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of QWI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QWI (JMD0.82) is trading below our estimate of fair value (JMD1.12)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is QWI Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.1%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as QWI Investments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Past Performance

How has QWI Investments performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-93.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: QWI has high quality earnings.

Growing Profit Margin: QWI's current net profit margins (26.1%) are lower than last year (74.9%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if QWI's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: QWI had negative earnings growth (-93.4%) over the past year, making it difficult to compare to the Capital Markets industry average (8.7%).

Return on Equity

High ROE: QWI's Return on Equity (1.5%) is considered low.

Discover strong past performing companies

Financial Health

How is QWI Investments's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: QWI's short term assets (JMD2.2B) exceed its short term liabilities (JMD395.0M).

Long Term Liabilities: QWI's short term assets (JMD2.2B) exceed its long term liabilities (JMD44.4M).

Debt to Equity History and Analysis

Debt Level: QWI has more cash than its total debt.

Reducing Debt: Insufficient data to determine if QWI's debt to equity ratio has reduced over the past 5 years.

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

Interest Coverage: QWI's interest payments on its debt are not well covered by EBIT (0.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

8.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: QWI's dividend (8.54%) is higher than the bottom 25% of dividend payers in the JM market (1.35%).

High Dividend: QWI's dividend (8.54%) is in the top 25% of dividend payers in the JM market (3.3%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether QWI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if QWI's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (180.5%), QWI's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: QWI is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

CEO

QWI Investments has no CEO, or we have no data on them.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/06/30
Annual Earnings	2021/09/30