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

• Market Cap: C$691.16M
• Dividend Yield: 2.2%
• Average Volume (3M): 19.02K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.92
• Revenue Growth: -1.35%
• EPS Growth: 496.34%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.90
• Shares Outstanding: 51,045,666
• 10 Day Avg. Volume: 14,409
• 30 Day Avg. Volume: 19,016
• PEG Ratio: <0.01
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.63
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$15.00 ▲(29.31% Upside)

The score is driven primarily by mixed financial quality: strong reported profitability and a solid, low-leverage balance sheet are offset by zero reported revenue in 2025/TTM and weak cash conversion. Technically, the trend is strong but signals are overbought, adding near-term pullback risk. Valuation is a positive, with a very low P/E and a modest dividend yield.

Positive Factors

Conservative balance sheet / low leverage

A very low debt-to-equity (~0.08) and expanding equity/assets provide durable financial flexibility. This conservative capital structure reduces refinancing risk, supports continued deal-making in cyclical mining markets, and preserves capacity to absorb investment losses over 2–6 months.

Structured, downside-protected financing model

A business model focused on secured loans, convertibles, royalties and selective equity offers diversified income streams and built-in downside protection. These durable instruments can generate recurring yields and lower loss severity versus pure equity exposure in volatile resource cycles.

Strong recent profitability and margins

Reported high TTM net income and elevated margins strengthen retained capital and support optionality for dividends or new investments. Sustained profitability, if backed by deal economics, underpins long-term capital growth and the ability to scale financing activity across mining counterparties.

Negative Factors

Zero reported revenue in 2025 and TTM

Reporting zero revenue in the latest annual period and TTM indicates earnings may rely on non-recurring items or valuation gains rather than stable operating income. This materially weakens visibility into recurring cash generation and complicates forecasting and underwriting over the medium term.

Weak cash conversion from earnings

Operating cash flow only covers about 27% of reported net income, signaling poor earnings quality. Persistent weak cash conversion can limit the company’s ability to self-fund new loans, pay dividends, or absorb investment losses without selling assets or raising external capital.

Earnings cyclicality and performance volatility

Pronounced year-to-year swings (loss in 2022, large profits in other years) reflect sensitivity to commodity and valuation cycles. Such structural volatility reduces predictability of cash flows and raises underwriting and capital allocation risks for investors over a 2–6 month horizon.

Queen's Road Capital Investment Business Overview & Revenue Model

Company Description

Queen's Road Capital Investment Ltd., a resource focused investment company, invests in privately held and publicly traded resource companies. It acquires and holds securities of long-term capital appreciation with a focus on convertible debt securities and resource projects. The company was formerly known as Lithion Energy Corp. and changed its name to Queen's Road Capital Investment Ltd. in January 2020. Queen's Road Capital Investment Ltd. was incorporated in 2011 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Queen's Road Capital Investment makes money through strategic equity and convertible debt investments in resource companies. The company generates revenue primarily from interest and dividends on its investments, capital appreciation from equity holdings, and fees associated with structured financing deals. Additionally, QRC benefits from its deep industry relationships and strategic partnerships, which enhance deal flow and investment opportunities, contributing to its financial performance.

Queen's Road Capital Investment Financial Statement Overview

Summary

Strong recent profitability and a conservatively levered balance sheet (low debt-to-equity, expanding equity) support the score. However, confidence is reduced by zero reported revenue in 2025 and TTM (vs prior years), meaningful earnings cyclicality, and weak cash conversion (operating cash flow materially trailing net income).

Income Statement

Profitability is strong in the most recent periods, with TTM (Trailing-Twelve-Months) net income of ~123.1M and very high net and operating margins. However, reported revenue is 0 in both the latest annual period (2025) and TTM, versus 23.2M in 2024 and 10.3M in 2023, creating a major volatility/visibility issue and driving an extreme revenue decline reading. Results also show meaningful earnings cyclicality (loss in 2022, strong profits in 2021 and again in 2023–TTM).

Balance Sheet

Balance sheet leverage appears conservative, with low debt relative to equity in both 2025 and TTM (debt-to-equity ~0.08). Equity and assets have also expanded notably (equity ~379M in 2025 and ~445M in TTM vs ~250M in 2024), supporting financial flexibility. The main risk is that returns have swung widely year to year (negative in 2022, modest in 2023–2024, then very high in 2025/TTM), suggesting performance is sensitive to market/investment conditions.

Cash Flow

Cash generation is positive but modest relative to reported earnings: operating cash flow is ~7.4M in TTM (Trailing-Twelve-Months) and 8.2M in 2025, and operating cash flow trails net income materially (coverage ~0.27 in both 2025 and TTM). Free cash flow is positive but showed a decline in TTM (about -9.5% growth). Overall, cash conversion appears weak versus the current profit level, which raises quality-of-earnings concerns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	23.20M	10.29M	8.51M	71.39M
Gross Profit	-1.57M	21.28M	8.52M	6.36M	70.70M
EBITDA	116.82M	20.06M	4.67M	-2.71M	67.02M
Net Income	115.08M	18.04M	4.34M	-3.48M	67.02M
Balance Sheet
Total Assets	409.63M	282.86M	237.24M	232.57M	149.22M
Cash, Cash Equivalents and Short-Term Investments	3.08M	1.09M	14.75M	34.51M	2.16M
Total Debt	29.58M	31.75M	316.09K	496.75K	0.00
Total Liabilities	30.72M	32.86M	1.29M	1.50M	172.71K
Stockholders Equity	378.91M	250.00M	235.95M	231.08M	149.05M
Cash Flow
Free Cash Flow	8.19M	7.24M	3.61M	637.70K	627.69K
Operating Cash Flow	8.19M	7.24M	3.61M	637.70K	627.69K
Investing Cash Flow	-17.29M	-47.86M	-21.02M	-45.61M	-23.57M
Financing Cash Flow	11.15M	26.97M	-2.23M	77.68M	0.00

Queen's Road Capital Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 11.6 is below the 20-day moving average (MA) of 13.24, above the 50-day MA of 11.10, and above the 200-day MA of 8.27, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 67.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
URB	81 Outperform	C$372.57M	4.07	20.24%	1.43%	-73.34%	40.59%
STCK	71 Outperform	C$258.11M	5.23	26.60%	―	550.81%	―
ELC	70 Outperform	C$16.15M	1.93	49.20%	1.96%	―	―
OLY	70 Neutral	C$276.95M	12.90	50.74%	6.44%	-2.76%	-12.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QRC	67 Neutral	C$691.16M	4.06	36.24%	2.20%	-1.35%	496.34%
AIM	51 Neutral	C$274.77M	-147.55	0.84%	―	8.11%	97.99%

Queen's Road Capital Investment Corporate Events

Queen’s Road Capital Commits US$20 Million Convertible Debenture to ATHA Energy

Queen’s Road Capital Investment Ltd. has agreed to invest US$20 million in ATHA Energy Corp. through a five-year convertible debenture carrying a 12% coupon and convertible into ATHA shares at C$0.85, pending regulatory approval expected by the end of the month. The deal deepens Queen’s Road Capital’s exposure to the uranium sector by backing ATHA Energy’s extensive portfolio of uranium exploration assets in Canada, including the Angilak Uranium Project in Nunavut and interests in Athabasca Basin projects, and complements the financier’s existing positions in NexGen Energy and IsoEnergy, reinforcing its strategy of targeting high-quality resource projects in secure jurisdictions.

The most recent analyst rating on (TSE:QRC) stock is a Buy with a C$13.50 price target. To see the full list of analyst forecasts on Queen’s Road Capital Investment stock, see the TSE:QRC Stock Forecast page.

Queen’s Road Capital Extends Share Repurchase Program

Queen’s Road Capital Investment Ltd. has announced the continuation of its normal course issuer bid (NCIB) for another 12 months, allowing the company to repurchase up to 1,760,000 common shares, approximately 3.45% of its outstanding shares. This move is intended to address potential undervaluation in the market price of its shares, with purchases depending on favorable market conditions. The continuation of the NCIB reflects the company’s ongoing strategy to manage its share capital effectively, potentially benefiting shareholders by enhancing the value of remaining shares.

The most recent analyst rating on (TSE:QRC) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Queen’s Road Capital Investment stock, see the TSE:QRC Stock Forecast page.

Queen’s Road Capital Reports Strong Fiscal Year 2025 Earnings and Positive Outlook for 2026

Queen’s Road Capital Investment Ltd. announced after-tax earnings of US$115 million for the fiscal year 2025, with a significant portfolio of convertible debentures and liquid equity investments. The company reported a strong start to 2026, driven by high demand for uranium, copper, and gold equities, which constitute a major part of its portfolio. Shareholder support remains robust, with a high participation rate in the dividend reinvestment plan, and the company plans to move to a semi-annual dividend schedule in 2026.

The most recent analyst rating on (TSE:QRC) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Queen’s Road Capital Investment stock, see the TSE:QRC Stock Forecast page.