OTCPK:VQSL.F

Stock Analysis Report

Executive Summary

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management for the public safety, insurance, justice, and governmental/agency markets in Australia, the United States, the United Kingdom, Canada, and internationally.

Rewards

Revenue is forecast to grow 39.4% per year

Risk Analysis

Earnings have declined by -51.06% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Limited growth with weak fundamentals.

Share Price & News

How has VIQ Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VQSL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

VQSL.F

1.7%

US IT

0.6%

US Market


1 Year Return

-19.2%

VQSL.F

42.2%

US IT

24.6%

US Market

Return vs Industry: VQSL.F underperformed the US IT industry which returned 40.8% over the past year.

Return vs Market: VQSL.F underperformed the US Market which returned 23.6% over the past year.


Shareholder returns

VQSL.FIndustryMarket
7 Day-3.9%1.7%0.6%
30 Day-6.4%7.1%3.0%
90 Day-14.1%14.5%10.6%
1 Year-19.2%-19.2%43.7%42.2%27.3%24.6%
3 Year-51.5%-51.5%109.6%100.6%50.5%40.8%
5 Year170.4%170.4%161.6%138.3%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is VIQ Solutions undervalued compared to its fair value and its price relative to the market?

4.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VQSL.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VQSL.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VQSL.F is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: VQSL.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VQSL.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VQSL.F is overvalued based on its PB Ratio (4.5x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is VIQ Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

39.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VQSL.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if VQSL.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VQSL.F's revenue (39.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VQSL.F's revenue (39.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VQSL.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VIQ Solutions performed over the past 5 years?

-51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VQSL.F is currently unprofitable.

Growing Profit Margin: VQSL.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VQSL.F is unprofitable, and losses have increased over the past 5 years at a rate of -51.1% per year.

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

Earnings vs Industry: VQSL.F is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (16.2%).


Return on Equity

High ROE: VQSL.F has a negative Return on Equity (-196.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VIQ Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: VQSL.F's short term assets ($6.4M) do not cover its short term liabilities ($8.3M).

Long Term Liabilities: VQSL.F's short term assets ($6.4M) do not cover its long term liabilities ($10.4M).


Debt to Equity History and Analysis

Debt Level: VQSL.F's debt to equity ratio (396.9%) is considered high.

Reducing Debt: VQSL.F's debt to equity ratio has increased from 37.6% to 396.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VQSL.F's debt is not covered by short term assets (assets are 0.5x debt).


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

Forecast Cash Runway: VQSL.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -40.5% each year


Next Steps

Dividend

What is VIQ Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate VQSL.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 VQSL.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VQSL.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 VQSL.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 VIQ Solutions's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Sebastien Paré 0

5yrs

Tenure

US$472,200

Compensation

Mr. Sebastien Paré has been the Chief Executive Officer and President of VIQ Solutions Inc. since January 2015 and August 1, 2014 respectively. Mr. Paré has diverse and valuable experience from the technol ...


CEO Compensation Analysis

Compensation vs Market: Sebastien's total compensation ($USD360.04K) is below average for companies of similar size in the US market ($USD514.71K).

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


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: VQSL.F's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

Experienced Board: VQSL.F's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$3,07913 Jan 20
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,100
Max PriceUS$1.53
BuyUS$98828 Oct 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares650
Max PriceUS$1.53
BuyUS$3,71022 Oct 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,300
Max PriceUS$1.68
BuyUS$75111 Oct 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares500
Max PriceUS$1.50
BuyUS$96525 Sep 19
Gilles-André Morin
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares550
Max PriceUS$1.75
BuyUS$1,03521 Aug 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares625
Max PriceUS$1.66
BuyUS$8,68821 Aug 19
Alexie Edwards
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,000
Max PriceUS$1.74
BuyUS$73616 Jul 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares400
Max PriceUS$1.84
BuyUS$89124 May 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares500
Max PriceUS$1.78
BuyUS$1,01109 May 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares525
Max PriceUS$1.93
BuyUS$54020 Apr 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares300
Max PriceUS$1.80
BuyUS$2,56116 Apr 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,425
Max PriceUS$1.80
BuyUS$95105 Feb 19
Larry Taylor
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares500
Max PriceUS$1.90

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.5%.


Management Team

  • Malcolm MacAllum

    Chief Innovation Officer

    • Tenure: 1yrs
    • Compensation: US$204.00k
  • Tony Incardona

    Senior Vice President of Global Sales & Business Development

    • Tenure: 0.4yrs
  • Sebastien Paré

    President

    • Tenure: 5yrs
    • Compensation: US$472.20k
  • Susan Sumner

    Chief Operating Officer

    • Tenure: 1.3yrs
  • Laura Haggard

    Chief Marketing Officer

    • Tenure: 1yrs
  • Gilles-André Morin

    Chief Information Officer

    • Tenure: 1yrs
  • Alexie Edwards

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Harvey Gordon (69yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$24.00k
  • Joe Quarin (53yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$24.00k
  • Larry Taylor

    Independent Chairman of the Board

    • Compensation: US$30.00k
  • Mike Kessel

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$24.00k
  • Sebastien Paré

    President

    • Tenure: 5yrs
    • Compensation: US$472.20k
  • Brad Wells

    Director

    • Tenure: 0.2yrs

Company Information

VIQ Solutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VIQ Solutions Inc.
  • Ticker: VQSL.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$20.620m
  • Listing Market Cap: CA$15.722m
  • Shares outstanding: 10.85m
  • Website: https://www.viqsolutions.com

Location

  • VIQ Solutions Inc.
  • 5915 Airport Road
  • Suite 700
  • Mississauga
  • Ontario
  • L4V 1T1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VQSTSXV (TSX Venture Exchange)YesCommon SharesCACADFeb 2005
VQSL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2005
VDU1DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2005

Biography

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management for the public safety, insurance, justice, and governmental/agency markets in Australia, the United States, the United Kingdom, Canada, and internationally. It operates in two segments, Technology and Transcription. The Technology segment develops, distributes, and licenses computer-based digital solutions based on its technology. The Transcription segment provides recording and transcription services. The company’s software captures digital content from audio/video source, and provides online collaboration, mobility, data analytics, and integration with sensors, facial recognition, speech recognition, and case management or patient record systems. The company provides its recording and transcription services to various clients, including medical, courtrooms, legislative assemblies, hearing rooms, inquiries, and quasi-judicial clients; and multi-speaker documentation services to law enforcement and criminal justice organizations. VIQ Solutions Inc. was incorporated in 2004 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 00:45
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
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.