Quorum Information Technologies (QIS) AI Stock Analysis

• Market Cap: C$66.24M
• Dividend Yield: N/A
• Average Volume (3M): 16.80K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.12
• Revenue Growth: -0.77%
• EPS Growth: 981.25%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 73,600,136
• 10 Day Avg. Volume: 25,991
• 30 Day Avg. Volume: 16,801
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Quorum Information Technologies has a solid financial performance, underpinned by strong profitability and cash flow management. The technical indicators offer a mixed view, with some bearish momentum. The valuation is slightly high, which could constrain future stock price appreciation. Positive strategic initiatives were discussed in the earnings call, aiming to address revenue and growth challenges, adding to the stock's potential for long-term value. The overall score reflects both the company's strengths and areas for improvement.

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 exhibits solid financial performance with strong cash flow generation and profitability. However, decreasing revenue and asset growth pose challenges. The company maintains low leverage and efficient operations, with a focus on revenue growth and asset expansion to sustain financial performance.

Income Statement

Quorum Information Technologies has shown a solid performance in its income statement metrics. The company enjoys a healthy gross profit margin at around 44.5% TTM, reflecting efficient cost management. The net profit margin is also positive at 7.3%, indicating profitability, though there's room for improvement. Revenue growth has been relatively stable, with a slight decline in the latest period compared to the previous annual report, which might be a concern for future growth prospects. The EBIT and EBITDA margins are robust, highlighting operational efficiency.

Balance Sheet

The balance sheet shows a balanced financial structure. The debt-to-equity ratio is moderate at 0.29 TTM, which suggests manageable leverage. Return on equity has improved to approximately 9.93% TTM, indicating effective utilization of equity. The equity ratio stands at 68.1%, showcasing a strong equity base relative to total assets. However, a decrease in total assets and stockholders' equity from the previous year might signal potential challenges in asset growth.

Cash Flow

The cash flow statement is strong. Operating cash flow to net income ratio is impressive, indicating that the company converts net income effectively into cash. Free cash flow growth is significant, with a notable increase in the latest TTM period, suggesting ample cash generation for reinvestment and debt management. Free cash flow to net income ratio is also positive, highlighting the company's ability to generate cash relative to its net income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
40.26M	38.80M	36.05M	30.86M	32.84M
	Gross Profit
19.26M	18.66M	16.41M	13.65M	15.22M
	EBIT
2.48M	461.76K	2.63K	-390.62K	57.74K
	EBITDA
6.02M	4.57M	2.43M	3.55M	3.80M
	Net Income Common Stockholders
233.95K	-1.41M	-2.71M	-1.86M	-1.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.60M	4.87M	6.48M	9.33M	8.55M
	Total Assets
45.83M	47.13M	45.17M	49.56M	49.92M
	Total Debt
12.94M	15.13M	12.24M	13.25M	12.52M
	Net Debt
9.33M	10.26M	5.76M	3.92M	3.97M
	Total Liabilities
18.77M	20.55M	17.41M	19.50M	18.83M
	Stockholders Equity
27.06M	26.58M	27.77M	30.06M	31.10M
Cash Flow		Free Cash Flow
1.65M	597.05K	-1.61M	1.39M	-360.05K
	Operating Cash Flow
4.62M	3.51M	1.64M	4.56M	3.50M
	Investing Cash Flow
-3.53M	-3.70M	-3.25M	-3.39M	-4.53M
	Financing Cash Flow
-2.32M	-1.44M	-1.16M	-385.60K	7.86M

Quorum Information Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.9 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.95, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, 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
DSG	80 Outperform	$12.46B	64.23	10.92%	―	16.07%	25.71%
ENGH	72 Outperform	$1.32B	15.55	14.76%	4.21%	8.11%	15.83%
CSU	71 Outperform	C$105.66B	105.51	30.90%	0.11%	21.56%	31.90%
OTEX	70 Outperform	$9.23B	10.35	15.87%	4.00%	-8.74%	307.82%
QIS	69 Neutral	C$66.24M	26.01	8.98%	―	-0.77%	981.25%
KXS	68 Neutral	C$5.24B	157.81	-0.10%	―	14.85%	-105.25%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%

Quorum Information Technologies Corporate Events

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.

Spark’s Take on TSE:QIS Stock

According to Spark, TipRanks’ AI Analyst, TSE:QIS is a Outperform.

Quorum Information Technologies demonstrates robust financial health with efficient operations, although revenue and asset growth need attention. Technical indicators suggest moderate bullish sentiment, while valuation metrics indicate potential overvaluation. The earnings call details strategic growth initiatives to address current challenges.

To see Spark’s full report on TSE:QIS stock, click here.

Quorum Information Technologies Announces Fiscal Year 2024 Results Release

Quorum Information Technologies announced the release date for its Q4 and fiscal year 2024 results, scheduled for April 16, 2025, with a conference call and webcast to follow on April 17, 2025. This announcement reflects Quorum’s ongoing commitment to transparency and communication with stakeholders, as they continue to provide innovative solutions that support the operational needs of automotive dealerships and OEMs.