Quanterix (QTRX) AI Stock Analysis

• Market Cap: $280.46M
• Dividend Yield: N/A
• Average Volume (3M): 701.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 14.72%
• EPS Growth: 9.35%
• Country: US
• Employees: 441
• Sector: Healthcare
• Sector Strength: 78
• Industry: Medical Equipment & Supplies
• EPS (TTM): -0.94
• Shares Outstanding: 38,524,326
• 10 Day Avg. Volume: 786,225
• 30 Day Avg. Volume: 701,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.14
• Price to Cash Flow (P/CF): -12.40
• P/FCF Ratio: 0.00
• 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: $19.67
• Price Target Upside: 158.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Quanterix faces significant financial and technical challenges, with profitability and cash flow issues. However, strong revenue growth, strategic advancements in diagnostics, and positive corporate events such as mergers and acquisitions provide potential for future improvement. The overall outlook is cautiously optimistic, contingent on the successful integration of recent acquisitions and achieving operational profitability.

Positive Factors

Acquisition and Market Expansion

The acquisition strengthens QTRX position in the oncology and immunology end-markets with translational research offerings.

Alzheimer's Diagnostics Potential

Alzheimer's diagnosis remains an upside optionality for Quanterix with Simoa's sensitivity being supportive of a meaningful position in the $9 billion Alzheimer's diagnosis market.

Negative Factors

Competitive Concerns

Concerns about competition from companies like Alamar have been a driver of weakness for Quanterix.

Quanterix Business Overview & Revenue Model

Company Description

Quanterix Corporation (QTRX) is a leading life sciences company specializing in digital health solutions. It operates in the biotechnology and healthcare sectors, focusing on the development and commercialization of ultra-sensitive biomarker detection technology. The company's core product offering includes the Simoa platform, a highly sensitive immunoassay platform that enables researchers and clinicians to detect and quantify proteins and nucleic acids at extremely low concentrations, which are critical for various research and diagnostic applications.

How the Company Makes Money

Quanterix generates revenue primarily through the sale of its Simoa platform and related consumables, including assay kits and reagents used for biomarker analysis. The company's revenue model also includes service contracts for instrument maintenance and support, as well as revenue from collaborative research and development partnerships with pharmaceutical and biotechnology companies. Additionally, Quanterix benefits from grant funding and research collaborations that support the advancement of its technology and applications in fields such as oncology, neurology, and infectious diseases. These diverse revenue streams and strategic partnerships contribute to the company's financial performance and growth potential.

Quanterix Financial Statement Overview

Summary

Quanterix shows revenue growth and a strong balance sheet with low leverage. However, significant profitability challenges and declining cash flows present major concerns for the company's financial health.

Income Statement

Quanterix shows a consistent growth in revenue with a TTM (Trailing-Twelve-Months) revenue of $133.4M, representing an increase from $122.4M in the previous year. However, the company faces significant profitability challenges, evidenced by negative EBIT and net income margins, as well as a declining gross profit margin from 57.8% to 54.3% over the TTM period.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio of 82.4% in the TTM period, indicating low financial leverage. The debt-to-equity ratio is also favorable at 0.11. However, return on equity remains negative due to consistent net losses, reflecting profitability issues.

Cash Flow

Cash flow analysis reveals challenges, with a negative operating cash flow and free cash flow in the TTM period. The free cash flow has worsened from -$22.7M to -$42.0M, indicating a decline in cash generation capability. The operating cash flow to net income ratio is close to 1, suggesting alignment between cash flow and accounting income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
133.41M	122.37M	104.95M	110.56M	86.38M	56.73M
	Gross Profit
72.52M	70.65M	46.24M	61.73M	48.18M	26.84M
	EBIT
-56.90M	-44.45M	-72.36M	-58.59M	-31.58M	-41.60M
	EBITDA
-43.26M	-38.09M	-65.73M	-53.24M	-27.27M	-38.59M
	Net Income Common Stockholders
-40.31M	-32.33M	-96.70M	-57.69M	-31.53M	-40.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.43M	321.32M	338.74M	396.46M	181.58M	109.16M
	Total Assets
67.63M	425.01M	434.20M	501.53M	271.05M	169.95M
	Total Debt
7.62M	41.46M	44.10M	21.89M	30.80M	7.66M
	Net Debt
-37.81M	-132.96M	-294.64M	-374.57M	-150.79M	-101.49M
	Total Liabilities
26.07M	78.08M	75.26M	60.58M	64.92M	41.29M
	Stockholders Equity
41.56M	346.93M	358.94M	440.95M	206.13M	128.66M
Cash Flow		Free Cash Flow
-42.02M	-22.69M	-60.00M	-61.52M	-27.30M	-37.03M
	Operating Cash Flow
-36.85M	-18.90M	-48.27M	-47.91M	-23.36M	-26.19M
	Investing Cash Flow
-136.28M	-148.40M	-11.21M	-6.34M	-626.00K	-25.38M
	Financing Cash Flow
616.00K	2.69M	2.31M	270.80M	96.24M	116.20M

Quanterix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QTRX, the sentiment is Negative. The current price of 7.6 is below the 20-day moving average (MA) of 7.68, below the 50-day MA of 8.92, and below the 200-day MA of 12.15, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QTRX.

Quanterix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TECH	73 Outperform	$9.94B	65.42	7.82%	0.50%	4.46%	-29.62%
QGEN	66 Neutral	$8.47B	104.68	2.27%	―	0.66%	―
DHR	65 Neutral	$146.95B	38.80	7.57%	0.53%	-13.50%	-17.25%
QTRX	58 Neutral	$280.46M	―	-10.32%	―	14.72%	9.35%
BIO	49 Neutral	$7.04B	―	-24.09%	―	-3.92%	-202.80%
ILMN	49 Neutral	$13.39B	―	-30.11%	―	-2.93%	-4.69%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%

Quanterix Corporate Events

Quanterix Announces Merger with Akoya Biosciences

Quanterix Corporation announced a merger agreement with Akoya Biosciences, which will result in Akoya becoming a wholly owned subsidiary of Quanterix. This strategic move aims to create a leading integrated platform in the biomarker detection space, enhancing Quanterix’s industry positioning by expanding its offerings across neurology, oncology, and immunology. The merger is expected to generate significant value for shareholders through synergies, expanded market opportunities, and a strengthened financial profile, positioning the combined company for sustainable growth and profitability.

Quanterix Merges with Akoya for Enhanced Biomarker Solutions

Quanterix Corporation has entered into a merger agreement to acquire Akoya Biosciences in an all-stock transaction, creating an integrated solution for ultra-sensitive detection of blood- and tissue-based protein biomarkers. This merger is expected to enhance Quanterix’s market position by expanding its technology offerings in high-growth areas such as neurology, oncology, and immunology, and is projected to generate significant annual cost synergies, with positive free cash flow anticipated by 2026.

Quanterix Expands with Acquisition of Emission Inc.

Quanterix Corporation has announced the acquisition of Emission Inc., a company known for its proprietary bead technology used in multi-plex assays. The acquisition, valued at up to $70 million based on performance milestones, is expected to enhance Quanterix’s technology stack and expand its market reach through vertical integration and OEM business opportunities. This strategic move aims to secure critical components for Quanterix’s platforms and support the company’s growth in the diagnostics industry.

Quanterix Faces Nasdaq Compliance Challenge, Aims for Transparency

Quanterix Corporation has received a notice from Nasdaq due to a delay in filing its quarterly financial report, which affects its compliance with Nasdaq’s listing rules. The company, however, assures that this has no immediate impact on its stock listing and is working swiftly to address the issue, aiming to complete the necessary filings by the end of 2024. This situation underscores the company’s commitment to transparency amid its ongoing financial restatement process.