OTCPK:SQID.F

Stock Analysis Report

Executive Summary

SQI Diagnostics Inc., a life sciences company, develops and commercializes proprietary technologies and products for advanced multiplexing diagnostics in Canada.

Snowflake

Fundamentals

Questionable track record with weak fundamentals.

Share Price & News

How has SQI Diagnostics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SQID.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SQID.F

3.2%

US Medical Equipment

0.7%

US Market


1 Year Return

-33.7%

SQID.F

19.2%

US Medical Equipment

12.9%

US Market

Return vs Industry: SQID.F underperformed the US Medical Equipment industry which returned 19.2% over the past year.

Return vs Market: SQID.F underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

SQID.FIndustryMarket
7 Day0%3.2%0.7%
30 Day-42.8%4.4%4.4%
90 Day-20.8%3.6%7.2%
1 Year-33.7%-33.7%20.2%19.2%15.4%12.9%
3 Year-59.1%-59.1%85.9%80.2%49.1%39.5%
5 Year-84.0%-84.0%120.3%96.3%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SQI Diagnostics undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether SQI Diagnostics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as SQI Diagnostics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SQID.F’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through SQI Diagnostics regulatory filings here.
  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

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

23.0%

Forecasted Healthcare 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 SQI Diagnostics 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.


Next Steps

  • Take a look at our analysis of SQID.F’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access SQI Diagnostics's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has SQI Diagnostics performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQID.F has high quality earnings.

Growing Profit Margin: SQID.F's current net profit margins (-396.4%) are higher than last year (-779.2%).


Past Earnings Growth Analysis

Earnings Trend: SQID.F is unprofitable, and losses have increased over the past 5 years at a rate of -6.1% per year.

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

Earnings vs Industry: SQID.F is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: SQID.F's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SQI Diagnostics's financial position?


Financial Position Analysis

Short Term Liabilities: SQID.F has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SQID.F has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SQID.F has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SQID.F's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SQID.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SQID.F has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: SQID.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SQID.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -9% each year


Next Steps

Dividend

What is SQI Diagnostics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SQID.F'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 SQID.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Andrew Morris (53yo)

6.4yrs

Tenure

CA$330,000

Compensation

Mr. Andrew Morris has been the Chief Executive Officer and President of SQI Diagnostics Inc. since June 17, 2013. Mr. Morris served as the Chief Financial Officer of SQI Diagnostics from May 2007 to June  ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD249.48K) is below average for companies of similar size in the US market ($USD509.30K).

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


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: SQID.F's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

71yo

Average Age

Experienced Board: SQID.F's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$753,29026 Sep 19
Wilmot Matthews
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000,000
Max PriceCA$0.075
BuyCA$753,29026 Sep 19
Hanover Investors Management LLP
EntityCompany
Shares10,000,000
Max PriceCA$0.075
BuyCA$753,29026 Sep 19
Gerald Connor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000,000
Max PriceCA$0.075
BuyCA$383,40415 Jul 19
Wilmot Matthews
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,846,154
Max PriceCA$0.10
BuyCA$383,40415 Jul 19
Hanover Investors Management LLP
EntityCompany
Shares3,846,154
Max PriceCA$0.10
BuyCA$383,40415 Jul 19
Gerald Connor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,846,154
Max PriceCA$0.10
BuyCA$502,65005 Mar 19
Wilmot Matthews
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,333,334
Max PriceCA$0.06
BuyCA$502,65005 Mar 19
Hanover Investors Management LLP
EntityCompany
Shares8,333,337
Max PriceCA$0.06
BuyCA$502,65005 Mar 19
Gerald Connor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,333,334
Max PriceCA$0.06

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36.9%.


Management Team

  • Peter Lea (74yo)

    • Tenure: 20.8yrs
  • Andrew Morris (53yo)

    CEO, President & Director

    • Tenure: 6.4yrs
    • Compensation: CA$330.00k
  • Russ Peloquin

    Vice President of Global Commercial Operations

    • Tenure: 0yrs
  • Patricia Lie

    Vice President of Finance & Administration

    • Tenure: 3.8yrs
    • Compensation: CA$131.00k
  • Eric Brouwer

    Chief Scientific Officer

    • Tenure: 2.1yrs
    • Compensation: CA$245.19k

Board Members

  • Wilmot Matthews (82yo)

    Independent Director

    • Tenure: 4.6yrs
  • Clive Beddoe (72yo)

    Chairman of the Board

    • Tenure: 4.6yrs
  • Gerry Connor (73yo)

    Independent Director

    • Tenure: 4.6yrs
  • Yehuda Shoenfeld (71yo)

    Chairman of Scientific Advisory Board

    • Tenure: 9.8yrs
  • Andrew Morris (53yo)

    CEO, President & Director

    • Tenure: 6.4yrs
    • Compensation: CA$330.00k
  • Claude Ricks (61yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: CA$8.00k
  • Eric Schneider (67yo)

    Independent Director

    • Tenure: 12.5yrs
  • Eric Zwisler

    Independent Director

    • Tenure: 1.4yrs

Company Information

SQI Diagnostics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SQI Diagnostics Inc.
  • Ticker: SQID.F
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: CA$18.587m
  • Listing Market Cap: CA$14.052m
  • Shares outstanding: 232.34m
  • Website: https://www.sqidiagnostics.com

Number of Employees


Location

  • SQI Diagnostics Inc.
  • 36 Meteor Drive
  • Toronto
  • Ontario
  • M9W 1A4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SQDTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2007
XSQDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2007
SQID.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2007

Biography

SQI Diagnostics Inc., a life sciences company, develops and commercializes proprietary technologies and products for advanced multiplexing diagnostics in Canada. The company offers sqidworks diagnostic pla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:33
End of Day Share Price2019/11/06 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.