Queen's Road Capital Investment (QRC) AI Stock Analysis

• Market Cap: C$306.50M
• Dividend Yield: 3.36%
• Average Volume (3M): 4.10K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.66
• Revenue Growth: -27.42%
• EPS Growth: 28.20%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 1.34
• Shares Outstanding: 49,040,184
• 10 Day Avg. Volume: 6,693
• 30 Day Avg. Volume: 4,104
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.09
• Price to Cash Flow (P/CF): 185.30
• P/FCF Ratio: 56.40
• 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

Queen's Road Capital Investment shows strong financial stability and profitability, though operational challenges reflected in negative EBIT need addressing. The stock's valuation is favorable given its low P/E ratio and decent dividend yield, making it attractive to value and income investors. Technical indicators suggest mild bearish sentiment, mainly due to the stock trading below its short-term averages. The overall score reflects a well-positioned company with room for operational improvement and favorable valuation metrics.

Queen's Road Capital Investment Business Overview & Revenue Model

Company Description

Queen's Road Capital Investment (QRC) is a leading financial services firm specializing in making strategic investments in resource and energy sectors. The company leverages its expertise in capital markets to identify opportunities and provide funding solutions to emerging and established companies, primarily in mining, oil and gas, and renewable energy sectors.

How the Company Makes Money

Queen's Road Capital Investment makes money through a combination of direct investments, loan financing, and equity participation in the companies within its focus sectors. The company's revenue model includes earning returns from capital appreciation, interest payments on loans, and dividends from its equity stakes. QRC often enters into strategic partnerships with its portfolio companies, which can enhance its returns through negotiated terms such as royalties or convertible debt instruments. The firm also benefits from its extensive network and industry expertise, allowing it to secure favorable deals and optimize its investment outcomes.

Queen's Road Capital Investment Financial Statement Overview

Summary

Queen's Road Capital Investment demonstrates strong profitability and financial stability, with a high net income and equity base. The company faces operational challenges as reflected in the negative EBIT, which requires attention to sustain long-term profitability. Cash flows are generally healthy, although the variability in revenue and cash generation suggests a need for strategic adjustments. Overall, the company is well-positioned, but operational improvements could enhance future performance.

Income Statement

The company's revenue has shown significant fluctuations over the years, with a notable increase in the TTM period. However, the EBIT margin witnessed a substantial decline in the TTM (Trailing-Twelve-Months) period, indicating operating inefficiencies. The gross profit margin remains strong, but the negative EBIT highlights potential cost management issues. Despite this, the net profit margin is remarkably high, driven by extraordinary income or non-operating gains.

Balance Sheet

The balance sheet is robust with a very high equity ratio, reflecting financial stability and low leverage. The debt-to-equity ratio is relatively low, indicating prudent financial management. The return on equity is impressive, suggesting efficient use of equity to generate profits. However, the asset growth should be monitored to ensure sustainable expansion.

Cash Flow

The cash flow statement reveals adequate free cash flow generation, though there is a noticeable decline in operating cash flow in the TTM period. Free cash flow growth is inconsistent, but the company maintains a healthy free cash flow to net income ratio, indicating good cash conversion. The fluctuations in investing cash flows suggest active investment activities, potentially for growth.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
14.97M	23.20M	10.29M	3.88M	71.39M	17.09M
	Gross Profit
13.95M	21.28M	10.04M	3.78M	70.70M	16.67M
	EBIT
-11.17M	19.96M	0.00	-2.43M	66.95M	9.78M
	EBITDA
49.87M	20.06M	4.67M	-2.36M	0.00	7.46M
	Net Income Common Stockholders
47.42M	18.04M	4.34M	-4.16M	67.02M	2.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.15M	1.09M	14.75M	34.51M	2.16M	25.00M
	Total Assets
350.32M	282.86M	237.24M	232.57M	149.22M	79.81M
	Total Debt
28.51M	31.75M	316.09K	496.75K	0.00	0.00
	Net Debt
24.35M	30.66M	-14.43M	-34.01M	-2.16M	-25.00M
	Total Liabilities
29.89M	32.86M	1.29M	1.50M	172.71K	473.77K
	Stockholders Equity
320.44M	250.00M	235.95M	231.08M	149.05M	79.33M
Cash Flow		Free Cash Flow
6.51M	7.24M	3.61M	637.70K	627.69K	―
	Operating Cash Flow
6.51M	7.24M	3.61M	637.70K	627.69K	―
	Investing Cash Flow
-49.36M	-47.86M	-21.02M	-45.61M	-23.57M	―
	Financing Cash Flow
37.45M	26.97M	-2.23M	77.68M	0.00	64.34M

Queen's Road Capital Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.00
• 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:QRC, the sentiment is Negative. The current price of 6 is below the 20-day moving average (MA) of 6.28, below the 50-day MA of 6.62, and below the 200-day MA of 7.22, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QRC.

Queen's Road Capital Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPM	79 Outperform	$45.67B	62.97	7.43%	0.88%	28.41%	-0.59%
FNV	74 Outperform	$39.70B	52.43	9.38%	1.01%	-7.22%	―
SSL	72 Outperform	$2.91B	150.91	1.00%	0.82%	-0.35%	-65.11%
OR	71 Outperform	C$5.25B	235.70	1.33%	0.94%	6.02%	―
QRC	70 Neutral	C$306.50M	4.66	16.06%	3.36%	-27.42%	28.20%
Sector *	63 Neutral	$12.88B	9.21	9.18%	4.78%	16.30%	-8.66%

Queen's Road Capital Investment Corporate Events

Queen’s Road Capital Confirms AGM Outcomes and Share Consolidation

Queen’s Road Capital Investment Ltd. recently held its Annual General Meeting, where over 30% of the company’s shares were represented. Shareholders approved the election of the board of directors, the appointment of KPMG LLP as auditors, and a share consolidation effective January 15, 2025. These decisions are expected to streamline operations and potentially enhance shareholder value.

Queen’s Road Capital to Implement Share Consolidation

Queen’s Road Capital Investment Ltd. is proceeding with a share consolidation following shareholder approval, converting ten pre-consolidated shares into one post-consolidated share, effective January 15, 2024. This move will reduce the total shares from 490,401,845 to approximately 49,040,184, which aims to streamline the company’s share structure without altering its name or stock symbol, potentially impacting its market positioning and shareholder value.