Quorum Information Technologies (QIS) AI Stock Analysis

• Market Cap: C$55.97M
• Dividend Yield: N/A
• Average Volume (3M): 32.70K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.17
• Revenue Growth: -0.92%
• EPS Growth: -23.37%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 73,640,780
• 10 Day Avg. Volume: 48,507
• 30 Day Avg. Volume: 32,704
• PEG Ratio: 0.85
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 96.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: C$1.00 ▲(31.58%Upside)

Quorum Information Technologies' solid financial foundation and positive corporate events are offset by negative technical indicators and a high P/E ratio. The company's strong cash flow and effective leverage management support its financial performance, while technical analysis points to a bearish short-term trend. The absence of a dividend yield and high valuation relative to earnings affects the stock's appeal.

Quorum Information Technologies Business Overview & Revenue Model

Company Description

Quorum Information Technologies (QIS) is a technology company specializing in providing software and services to the automotive retail industry. The company offers a range of solutions aimed at enhancing dealership management, customer relationship management, and sales processes. Quorum's core products include dealership management systems (DMS), customer relationship management (CRM) tools, and related support services, designed to improve operational efficiency and customer engagement for automotive dealerships.

How the Company Makes Money

Quorum Information Technologies makes money primarily through the sale and subscription of its software products and services to automotive dealerships. Its revenue model includes recurring subscription fees for its dealership management systems and CRM solutions, which are typically billed on a monthly or annual basis. Additionally, the company generates revenue from professional services such as installation, training, and ongoing customer support. Quorum may also benefit from strategic partnerships with automotive manufacturers and other technology providers, which can enhance its market presence and offer additional revenue opportunities through collaborative solutions and integrations.

Quorum Information Technologies Financial Statement Overview

Summary

Quorum Information Technologies has shown consistent revenue growth and improved profitability metrics. Strong gross and net profit margins indicate efficient cost management, though revenue growth has been modest. The balance sheet is solid with good leverage management, but there is moderate reliance on liabilities. Cash flows are robust, with strong free cash flow generation and efficient cash management.

Income Statement

Quorum Information Technologies has demonstrated consistent revenue growth over recent years, with notable improvement in profitability metrics. The Gross Profit Margin has remained strong, reflecting efficient cost management. Net Profit Margin and EBITDA Margin have improved significantly, indicating enhanced operational efficiency. However, the revenue growth rate has been modest, and there was a decrease in total revenue from 2023 to 2024.

Balance Sheet

The balance sheet of Quorum Information Technologies highlights a solid equity position with an improving Debt-to-Equity ratio over the years, suggesting effective leverage management. The Return on Equity has seen positive growth, underscoring effective use of equity to generate profits. However, the Equity Ratio indicates a moderate reliance on liabilities, which requires attention to maintain balance.

Cash Flow

The company's cash flow statements reveal robust operating cash flows, with consistent Free Cash Flow generation indicating strong cash conversion capabilities. The Free Cash Flow Growth Rate is notable, reflecting the firm's ability to invest in growth while maintaining liquidity. The Operating Cash Flow to Net Income ratio is strong, reinforcing efficient cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.95M	40.26M	38.80M	36.05M	30.86M
Gross Profit	19.81M	19.26M	18.66M	16.41M	13.65M
EBITDA	8.22M	6.02M	4.57M	2.43M	3.55M
Net Income	2.55M	233.95K	-1.41M	-2.71M	-1.86M
Balance Sheet
Total Assets	42.55M	45.83M	47.13M	45.17M	49.56M
Cash, Cash Equivalents and Short-Term Investments	2.18M	3.60M	4.87M	6.48M	9.33M
Total Debt	7.27M	12.94M	15.13M	12.24M	13.25M
Total Liabilities	12.90M	18.77M	20.55M	17.41M	19.50M
Stockholders Equity	29.66M	27.06M	26.58M	27.77M	30.06M
Cash Flow
Free Cash Flow	4.85M	1.65M	597.05K	-1.61M	1.39M
Operating Cash Flow	7.03M	4.62M	3.51M	1.64M	4.56M
Investing Cash Flow	-2.29M	-3.53M	-3.70M	-3.25M	-3.39M
Financing Cash Flow	-6.23M	-2.32M	-1.44M	-1.16M	-385.60K

Quorum Information Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QIS, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.87, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 30.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QIS.

Quorum Information Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTZ	79 Outperform	C$44.33M	18.48	26.51%	―	16.47%	44.10%
NCI	76 Outperform	C$104.65M	10.53	135.14%	―	92.08%	100.09%
QIS	64 Neutral	C$55.97M	38.00	5.09%	―	-0.92%	-23.37%
URL	60 Neutral	C$94.95M	94.06	-4.32%	―	16.94%	-112.50%
Sector *	49 Neutral	C$2.92B	2.03	-80.91%	2.68%	12.55%	-24.32%
XTRA	47 Neutral	C$79.29M	―	-99.03%	―	29.22%	18.54%
VXTR	39 Underperform	C$7.71M	―	-2108.66%	―	-47.00%	-22.30%

Quorum Information Technologies Corporate Events

Quorum Reports Q1 2025 Results and Board Changes

Quorum Information Technologies reported its Q1 2025 financial results, showing a 1% increase in total revenue to $10.2 million despite challenges from tariffs in the automotive industry. The company achieved a 15% Adjusted EBITDA margin and implemented $1.3 million in annual savings to be realized by Q3 2025. Additionally, Quorum announced the appointment of Steve Hammond to its Board of Directors, replacing Scot Eisenfelder, who has served for 16 years.

Quorum Information Technologies to Announce Q1 2025 Financial Results

Quorum Information Technologies announced that it will release its Q1 2025 financial results after the market closes on May 28, 2025. The results will be presented by the company’s CEO and CFO during a conference call and webcast on May 29, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, which are crucial for assessing its market position and future prospects.

Quorum Reports Strong Financial Growth in 2024

Quorum Information Technologies reported a significant increase in its financial performance for the fiscal year 2024, with Adjusted EBITDA rising by 18% to $8.3 million and Cash EBITDA surging by 89% to $5.5 million. The company’s strategic focus on profitable growth and product cross-selling has strengthened its balance sheet, allowing for debt reduction and positioning it for future investments, thereby enhancing value for both the company and its customers.