Quartix Holdings (QTX) AI Stock Analysis

• Market Cap: £141.90M
• Dividend Yield: 2%
• Average Volume (3M): 53.03K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.34
• Revenue Growth: 8.19%
• EPS Growth: N/A
• Country: UK
• Employees: 173
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.06
• Shares Outstanding: 48,430,157
• 10 Day Avg. Volume: 39,459
• 30 Day Avg. Volume: 53,033
• PEG Ratio: -0.03
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 27.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £330.00
• Price Target Upside: 20.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 332.00p ▲(20.73% Upside)

Quartix Holdings scores well due to its strong financial performance and positive corporate events, indicating a robust outlook. However, technical indicators suggest a cautious approach in the short term. The valuation is moderate, providing a balanced investment opportunity.

Positive Factors

Recurring subscription model

A subscription-based telematics model provides predictable recurring revenue, high customer retention and upsell opportunities for premium analytics. This underpins stable cash flow visibility and long-term customer value in fleet management, supporting durable revenue resilience and predictable growth.

Improving profitability & margins

Material margin expansion and a return to net profitability indicate stronger unit economics and cost discipline. Higher gross and net margins support reinvestment, margin sustainability and competitive pricing flexibility, making earnings less sensitive to revenue volatility over the medium term.

Low leverage and strong ROE

Extremely low leverage and a robust equity ratio provide financial flexibility for capex, product development or M&A without stressing solvency. A 24% ROE signals efficient capital use, enhancing the firm's ability to fund growth internally and sustain returns to stakeholders long-term.

Negative Factors

Declining operating cash flow

A drop in operating cash flow and negative FCF growth signal weaker cash conversion despite accounting profits. Persisting cash-flow pressure can limit investment in product development, slow commercial expansion or constrain shareholder returns even as margins improve.

Slight decline in total assets

Declining total assets may reflect underinvestment or shrinking operational scale, which could impede capacity to expand services or support larger fleet customers. If the trend continues it can constrain long-term growth and weaken competitive positioning in a capital-lite tech market.

Moderate revenue growth rate

Single-digit revenue growth in a dynamic telematics market suggests limited top-line momentum versus high-growth peers. Slower revenue expansion can reduce scale benefits, limit market share gains and heighten importance of margin improvements to sustain long-term profitability.

Quartix Holdings Business Overview & Revenue Model

Company Description

Quartix Technologies Plc engages in the design, development, marketing, and delivery of vehicle telematics services in the United Kingdom, France, the United States, and the European Territories. The company offers vehicle tracking system for businesses, such as real-time vehicle tracking; driver timesheet report; driver behavior report; vehicle tracking reports and dashboards; vehicle tracking alerts; customized tracking; and fleet management solutions and services. It provides its products primarily to building and construction, trades and field services, transportation, security, and distribution industries. The company was formerly known as Quartix Holdings plc and changed its name to Quartix Technologies Plc in June 2021. Quartix Technologies Plc was founded in 2001 and is based in Cambridge, the United Kingdom.

How the Company Makes Money

Quartix generates revenue through a subscription-based model, where customers pay for access to its telematics services and software platforms. Key revenue streams include monthly or annual subscription fees from fleet operators who utilize Quartix's tracking solutions, as well as additional charges for premium features such as advanced analytics and reporting tools. The company also benefits from partnerships with automotive manufacturers and service providers, which can lead to bundled offerings and increased customer acquisition. Furthermore, Quartix's focus on continuous innovation and the expansion of its service portfolio contribute to its earnings by attracting new customers and retaining existing ones.

Quartix Holdings Financial Statement Overview

Summary

Quartix Holdings demonstrates strong financial health with significant improvements in profitability and operational efficiency. The company has a low leverage profile and robust equity position, contributing to its financial stability. Despite a slight decline in cash flow generation, the overall financial trajectory remains positive.

Income Statement

Quartix Holdings has shown strong revenue growth over the years, with a 8.45% increase from 2023 to 2024. The gross profit margin improved to 69.50% in 2024, indicating efficient cost management. Net profit margin turned positive at 14.71% in 2024 from a negative position in 2023, showing a significant turnaround in profitability. Both EBIT and EBITDA margins have improved markedly, reflecting strong operational efficiency.

Balance Sheet

Quartix Holdings maintains a solid equity position with a debt-to-equity ratio of 0.03, showing low leverage and financial stability. Return on Equity (ROE) improved to 24.31% in 2024, showing effective utilization of equity. The equity ratio of 64.42% indicates a strong capital structure. However, the slight decrease in total assets over the years is a point of concern.

Cash Flow

Operating cash flow remains positive, although it decreased in 2024. Free cash flow generation is strong, with a minimal decline from 2023 to 2024. The operating cash flow to net income ratio is 0.58 in 2024, suggesting strong cash generation from operations relative to net income. However, the free cash flow growth rate turned negative, indicating some pressure on cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.93M	32.40M	29.88M	27.52M	25.51M	25.84M
Gross Profit	23.62M	22.52M	16.98M	19.70M	18.75M	17.05M
EBITDA	7.41M	6.66M	-813.00K	5.82M	5.76M	6.06M
Net Income	5.26M	4.77M	-908.00K	5.04M	4.98M	4.73M
Balance Sheet
Total Assets	32.04M	30.44M	29.28M	30.10M	28.56M	30.81M
Cash, Cash Equivalents and Short-Term Investments	4.15M	3.10M	2.38M	5.06M	5.41M	10.57M
Total Debt	761.00K	559.00K	660.00K	748.00K	763.00K	957.00K
Total Liabilities	11.00M	10.84M	12.93M	9.21M	8.51M	9.38M
Stockholders Equity	21.04M	19.60M	16.35M	20.90M	20.05M	21.43M
Cash Flow
Free Cash Flow	4.20M	2.74M	3.27M	3.79M	3.27M	5.53M
Operating Cash Flow	4.22M	2.77M	3.28M	3.86M	3.33M	5.61M
Investing Cash Flow	-192.00K	-202.00K	-1.99M	-68.00K	-61.00K	-72.00K
Financing Cash Flow	-2.36M	-1.62M	-3.95M	-4.26M	-8.36M	-1.78M

Quartix Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:QTX, the sentiment is Negative. The current price of 275 is below the 20-day moving average (MA) of 309.25, below the 50-day MA of 289.68, and above the 200-day MA of 269.63, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 7.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:QTX.

Quartix Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	74 Outperform	£141.90M	26.95	27.08%	2.00%	8.19%	―
SDI	70 Neutral	£85.75M	18.72	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£91.34M	37.79	3.88%	1.56%	8.75%	-54.73%
KETL	68 Neutral	£109.22M	14.52	18.63%	―	-3.41%	58.10%
GHH	67 Neutral	£196.52M	52.60	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£82.83M	-7.60	-16.64%	―	-7.35%	-222.10%

Quartix Holdings Corporate Events

Quartix Lifts Expectations as Recurring Revenue and Cash Flow Surge in 2025

Quartix Technologies reported that revenue and adjusted EBITDA for 2025 are expected to come in ahead of market expectations, underpinned by a 14% increase in annualised recurring revenue to £37m, 9% growth in customers and 11% growth in subscriptions, alongside strong free cash flow of £5.1m despite heavy investment in 4G upgrades, restructuring and higher tax prepayments; the group ended the year with £5.6m in cash and plans to consolidate its dividend structure, targeting a total ordinary payout of 10p per share. Operationally, the company is seeing broad-based growth across its core geographies—most notably in Italy and Spain—while investing in new telematics hardware, a unified web and mobile user interface and the roll-out of connected dashcams, and it is managing major 4G network upgrade programmes and an accounting treatment review with the UK Financial Reporting Council, which may alter the classification of tracking system costs but is not expected to affect revenue or free cash flow, underscoring a generally positive outlook for continued expansion in 2026.

The most recent analyst rating on (GB:QTX) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Quartix Holdings stock, see the GB:QTX Stock Forecast page.

Quartix Technologies Announces Share Sale by PDMR Associate

Quartix Technologies plc announced that Georgina Middleton, associated with Glen Middleton, a person discharging managerial responsibilities, sold 4,016 ordinary shares at 274.00 pence each. This transaction reduces the combined shareholding of Glen and Georgina Middleton to 52,294 shares, potentially impacting their influence within the company.

The most recent analyst rating on (GB:QTX) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Quartix Holdings stock, see the GB:QTX Stock Forecast page.