NasdaqCM:BRQS

Stock Analysis Report

Executive Summary

Borqs Technologies, Inc., through its subsidiaries, provides development services, software solutions, and products for Android-based smart connected devices in China, India, the United States, and internationally.

Rewards

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Latest financial reports are more than a year old

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($61M)



Snowflake Analysis

Acceptable track record with imperfect balance sheet.


Similar Companies

Quanta Computer

TSEC:2382

Share Price & News

How has Borqs Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BRQS

2.5%

US Tech

2.0%

US Market


1 Year Return

-54.1%

BRQS

95.2%

US Tech

23.6%

US Market

Return vs Industry: BRQS underperformed the US Tech industry which returned 96.6% over the past year.

Return vs Market: BRQS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BRQSIndustryMarket
7 Day0%2.5%2.0%
30 Day0%13.1%3.9%
90 Day0%32.7%12.0%
1 Year-54.1%-54.1%98.4%95.2%26.2%23.6%
3 Yearn/a157.6%139.0%53.2%43.3%
5 Yearn/a176.7%148.5%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Borqs Technologies undervalued compared to its fair value and its price relative to the market?

58.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: BRQS is poor value based on its PE Ratio (58.6x) compared to the Tech industry average (26.1x).

PE vs Market: BRQS is poor value based on its PE Ratio (58.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BRQS is good value based on its PB Ratio (1.1x) compared to the US Tech industry average (1.9x).


Next Steps

Future Growth

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

7.0%

Forecasted Tech 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 Borqs Technologies 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

Past Performance

How has Borqs Technologies performed over the past 5 years?

42.4%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: BRQS has high quality earnings.

Growing Profit Margin: BRQS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BRQS has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: BRQS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BRQS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (25.2%).


Return on Equity

High ROE: BRQS's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Borqs Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: BRQS's short term assets ($82.7M) exceed its short term liabilities ($60.0M).

Long Term Liabilities: BRQS's short term assets ($82.7M) exceed its long term liabilities ($18.5M).


Debt to Equity History and Analysis

Debt Level: BRQS's debt to equity ratio (46.1%) is considered high.

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

Debt Coverage: BRQS's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: BRQS's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: BRQS's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is Borqs Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if BRQS'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 BRQS'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 Borqs Technologies's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Pat Chan (53yo)

12.9yrs

Tenure

US$1,249,896

Compensation

Mr. Sek Yuen Chan, also known as Pat, is a Founder of Borqs Technologies, Inc. (formerly, BORQS International, Ltd) and has been Chief Executive Officer and President since 2007. Mr. Chan has over 20 years ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BRQS's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: BRQS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 288.1%.


Management Team

  • Pat Chan (53yo)

    Founder

    • Tenure: 12.9yrs
    • Compensation: US$1.25m
  • Simon Sun (51yo)

    Executive VP & Co-GM of Connected Solutions BU

    • Tenure: 2.3yrs
  • Bob Li (56yo)

    Founder and Executive VP of Corporate Affairs & China Sales

    • Tenure: 12.9yrs
    • Compensation: US$257.64k
  • Gene Wuu (63yo)

    Executive VP & GM of MVNO Business Unit

    • Tenure: 2.3yrs
  • Hareesh Ramanna (57yo)

    Executive VP & Co-GM of Connected Solutions BU

    • Tenure: 2.3yrs
  • Anthony K. Chan (64yo)

    CFO & Executive VP of Corporate Finance

    • Tenure: 2.3yrs
    • Compensation: US$790.43k
  • George Thangadurai (56yo)

    Executive VP & President of International Business


    Board Members

    • Bill Huang (57yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$112.41k
    • Pat Chan (53yo)

      Founder

      • Tenure: 12.9yrs
      • Compensation: US$1.25m
    • Honghui Deng (50yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$112.41k
    • Jason Zexian Shen (65yo)

      Independent Director

      • Tenure: 4.4yrs
      • Compensation: US$117.41k
    • Yaqi Feng (37yo)

      Director

      • Tenure: 4.4yrs
      • Compensation: US$112.41k
    • Eric Tao (41yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$112.41k
    • Lawrence Chow

      Director

      • Tenure: 1yrs
    • Ji Li

      Director

      • Tenure: 1yrs
    • Addy Fong

      Director

      • Tenure: 0.8yrs

    Company Information

    Borqs Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Borqs Technologies, Inc.
    • Ticker: BRQS
    • Exchange: NasdaqCM
    • Founded:
    • Industry: Technology Hardware, Storage and Peripherals
    • Sector: Tech
    • Market Cap: US$61.386m
    • Shares outstanding: 34.10m
    • Website: https://www.borqs.com

    Number of Employees


    Location

    • Borqs Technologies, Inc.
    • Building B23-A
    • Universal Business Park
    • Beijing
    • 100015
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BRQSNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDAug 2017

    Biography

    Borqs Technologies, Inc., through its subsidiaries, provides development services, software solutions, and products for Android-based smart connected devices in China, India, the United States, and internationally. It operates through two segments, Mobile Virtual Network Operator Services and Connected Solutions. The company develops wireless smart connected devices and cloud solutions; and provides a range of 2G/3G/4G voice and data services for general consumer usage and Internet-of-things devices, as well as telecom services, such as voice conferencing. It also offers commercial grade Android platform software and service solutions for mobile chipset manufacturers, mobile device OEMs, and mobile operators, as well as mobile connected device solutions for use in enterprise and consumer applications. In addition, it sells hardware products. Borqs Technologies, Inc. is headquartered in Beijing, China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2019/12/11 01:04
    End of Day Share Price2019/09/12 00:00
    Earnings2018/09/30
    Annual Earnings2017/12/31


    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.