Quorum Information Technologies (QIS) AI Stock Analysis

• Market Cap: C$53.02M
• Dividend Yield: N/A
• Average Volume (3M): 30.34K
• Price to Earnings (P/E): 35.8
• Beta (1Y): -0.03
• Revenue Growth: 0.10%
• EPS Growth: -18.29%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 73,644,714
• 10 Day Avg. Volume: 32,628
• 30 Day Avg. Volume: 30,335
• PEG Ratio: 0.03
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 14.42
• 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: C$1.00
• Price Target Upside: 38.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: C$1.00 ▲(38.89% Upside)

Quorum Information Technologies demonstrates strong financial performance with robust revenue growth and effective cash management, which are the most significant factors contributing to the score. Technical analysis suggests neutral momentum, while the high P/E ratio indicates potential overvaluation. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for QIS's products, suggesting strong market positioning and potential for continued expansion in the automotive software industry.

Cash Flow Management

Effective cash management and strong cash flow growth enhance financial stability, providing QIS with the flexibility to invest in growth opportunities and withstand economic fluctuations.

Balance Sheet Health

A lower debt-to-equity ratio strengthens QIS's balance sheet, reducing financial risk and enhancing its ability to finance future growth initiatives through equity rather than debt.

Negative Factors

Profit Margin

A decreasing gross profit margin suggests potential cost increases or pricing pressures, which could erode profitability if not managed effectively, impacting long-term financial health.

Earnings Growth

Negative EPS growth reflects challenges in translating revenue growth into shareholder value, possibly due to cost pressures or inefficiencies, which could affect investor confidence and stock performance.

Margin Pressure

Declining operational margins may indicate rising costs or competitive pressures, which could impact profitability if not addressed, potentially limiting future earnings growth.

Quorum Information Technologies Business Overview & Revenue Model

Company Description

Quorum Information Technologies Inc., an information technology company, focuses on the automotive retail business in Canada and the United States. The company develops, markets, implements, and supports XSellerator, a dealership management system that automates, integrates, and streamlines processes across departments in a dealership; and DealerMine CRM, a sales and service customer relationship management system, as well as a set of business development center services. It also offers Autovance, a retailing platform that helps dealerships attract more business through digital retailing, and enhances in-store profits and closing rates through its desking tool; and Accessible Accessories, a digital retailing platform that allows franchised dealerships to increase vehicle accessories revenue. In addition, the company offers software technology solutions and services to traditional and electric vehicle dealerships, and original equipment manufacturers. Quorum Information Technologies Inc. was founded in 1996 and is headquartered in Calgary, Canada.

How the Company Makes Money

Quorum Information Technologies generates revenue primarily through the licensing and subscription fees of its software solutions. The company offers its products on a software-as-a-service (SaaS) model, where dealerships pay recurring fees to access and use the software. This subscription-based revenue model ensures a steady and predictable income stream. Additionally, QIS may earn money through implementation, training, and support services, which are often bundled with its software offerings. The company also seeks strategic partnerships with other technology providers and automotive industry stakeholders to enhance its product offerings and expand its market reach, further contributing to its revenue growth.

Quorum Information Technologies Financial Statement Overview

Summary

Quorum Information Technologies shows solid financial performance with consistent revenue and cash flow growth. The company has improved profitability and maintains a stable financial position with conservative leverage. However, there is a slight decline in operating efficiency.

Income Statement

Quorum Information Technologies has demonstrated solid revenue growth with a 9.7% increase from 2020 to 2025, reaching CAD 40.05 million on a TTM basis. Gross profit margin remains healthy at 48.8%, indicating efficient cost management. The TTM net profit margin is positive at 3.68%, a significant improvement from previous losses, showing effective turnaround and profitability enhancement. However, EBIT margin has decreased to 8.92% from 9.84% in 2024, suggesting potential pressure on operating efficiency.

Balance Sheet

The company maintains a stable financial position, with a debt-to-equity ratio of 0.23, reflecting conservative leverage. The equity ratio is robust at 69.97%, indicating strong equity financing. Return on equity is modest at 4.96%, pointing to moderate profitability for shareholders. While the balance sheet showcases financial stability, the pace of equity growth is moderate.

Cash Flow

Cash flow management is strong, demonstrated by a 11.11% growth in free cash flow over the last year. The operating cash flow to net income ratio is high at 4.97, indicating effective cash generation from core operations. The free cash flow to net income ratio is also positive at 3.65, reflecting good cash profitability. This strong cash flow performance enhances financial flexibility for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.37M	39.95M	40.26M	38.80M	36.05M	30.86M
Gross Profit	19.66M	19.81M	19.26M	18.66M	16.41M	13.65M
EBITDA	7.75M	8.22M	6.02M	4.57M	2.43M	3.55M
Net Income	1.48M	2.55M	233.95K	-1.41M	-2.71M	-1.86M
Balance Sheet
Total Assets	40.73M	42.55M	45.83M	47.13M	45.17M	49.56M
Cash, Cash Equivalents and Short-Term Investments	3.64M	2.18M	3.60M	4.87M	6.48M	9.33M
Total Debt	4.68M	7.27M	12.94M	15.13M	12.24M	13.25M
Total Liabilities	10.80M	12.90M	18.77M	20.55M	17.41M	19.50M
Stockholders Equity	29.93M	29.66M	27.06M	26.58M	27.77M	30.06M
Cash Flow
Free Cash Flow	6.07M	4.85M	1.65M	597.05K	-1.61M	1.39M
Operating Cash Flow	7.86M	7.03M	4.62M	3.51M	1.64M	4.56M
Investing Cash Flow	-1.85M	-2.29M	-3.53M	-3.70M	-3.25M	-3.39M
Financing Cash Flow	-6.55M	-6.23M	-2.32M	-1.44M	-1.16M	-385.60K

Quorum Information Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.72
• 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 TSE:QIS, the sentiment is Negative. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.72, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 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$42.53M	17.69	26.51%	―	19.40%	36.75%
URL	66 Neutral	C$120.45M	177.92	19.91%	―	20.06%	83.33%
QIS	64 Neutral	C$53.02M	35.82	5.05%	―	0.10%	-18.29%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
NCI	56 Neutral	C$78.05M	9.26	84.34%	―	78.50%	12.58%
XTRA	54 Neutral	C$136.30M	―	-99.03%	―	29.22%	18.54%
VXTR	41 Neutral	C$3.89M	―	-2108.66%	―	-47.00%	-22.30%

Quorum Information Technologies Corporate Events

Quorum Reports Revenue Growth and Loan Repayment in Q2 2025

Quorum Information Technologies reported a 3% increase in total revenue for Q2 2025, reaching $10.3 million, with notable growth in BDC revenue by 11%. The company also achieved a 3% organic growth in recurring revenue and successfully paid off the Cash Flow Loan component of the BDC Capital Loan Facility. Despite a slight decrease in Adjusted EBITDA compared to the previous year, Quorum’s integrated suite of software solutions continues to play a critical role in driving dealership success and enhancing value for its stakeholders.

The most recent analyst rating on (TSE:QIS) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Quorum Information Technologies stock, see the TSE:QIS Stock Forecast page.

Quorum to Announce Q2 2025 Financial Results

Quorum Information Technologies announced that it will release its Q2 2025 financial results on August 27, 2025, after market close. The results will be presented by the company’s CEO and CFO during a conference call and webcast on August 28, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.