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

• Market Cap: C$358.24M
• Dividend Yield: 0.04%
• Average Volume (3M): 18.19K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.76
• Revenue Growth: 6.43%
• EPS Growth: -129.11%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 1.13
• Shares Outstanding: 49,824,250
• 10 Day Avg. Volume: 19,583
• 30 Day Avg. Volume: 18,190
• PEG Ratio: 0.04
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.96
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 17.22
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: C$6.50
• Price Target Upside: -9.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: C$7.50 ▲(4.31%Upside)

The overall score reflects a mix of strong technical momentum and positive corporate events, offset by weak financial performance and unattractive valuation. The potential Adriatic Metals takeover and positive market momentum are notable positives, but profitability issues and current valuation limitations weigh on the overall score.

Queen's Road Capital Investment Business Overview & Revenue Model

Company Description

Queen's Road Capital Investment Ltd. is a leading financier in the resource sector, primarily investing in privately-held and publicly-traded companies. The company focuses on providing capital to mining and natural resource companies, enabling them to develop and expand their operations. QRC leverages its expertise in the industry to identify promising investment opportunities and support the growth of these enterprises.

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

Queen's Road Capital Investment faces significant profitability challenges with declining revenues and negative profit margins, despite strong gross margins. The balance sheet shows financial stability with low leverage, but cash flow management issues persist due to stagnant free cash flow growth and net losses.

Income Statement

The income statement shows a decline, with TTM revenue down to $15.35M from $23.20M last year. Gross profit margin is strong at 93.73% TTM but EBIT and net profit margins are negative due to significant expenses, leading to a net loss. Revenue growth has been inconsistent, indicating volatility in earnings.

Balance Sheet

The balance sheet is relatively stable, with a solid equity base. The debt-to-equity ratio is low at 0.14, indicating good financial health. However, the equity ratio slightly decreased to 87.48%. The company maintains a strong cash position, but there is a noticeable increase in liabilities.

Cash Flow

Cash flows are moderate, with positive operating cash flow of $8.11M TTM. However, free cash flow growth is stagnant. The operating cash flow to net income ratio is distorted due to net losses, suggesting cash flow management challenges.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	23.20M	10.29M	8.51M	71.39M	17.09M
Gross Profit	21.28M	10.04M	6.36M	70.70M	16.67M
EBITDA	20.06M	4.67M	-2.71M	67.03M	7.46M
Net Income	18.04M	4.34M	-4.17M	67.03M	5.11M
Balance Sheet
Total Assets	282.86M	237.24M	232.57M	149.22M	79.81M
Cash, Cash Equivalents and Short-Term Investments	1.09M	14.75M	34.51M	2.16M	25.00M
Total Debt	31.75M	316.09K	496.75K	0.00	0.00
Total Liabilities	32.86M	1.29M	1.50M	172.71K	473.77K
Stockholders Equity	250.00M	235.95M	231.08M	149.05M	79.33M
Cash Flow
Free Cash Flow	7.24M	3.61M	637.70K	627.69K	―
Operating Cash Flow	7.24M	3.61M	637.70K	627.69K	―
Investing Cash Flow	-47.86M	-21.02M	-45.61M	-23.57M	―
Financing Cash Flow	26.97M	-2.23M	77.68M	0.00	64.34M

Queen's Road Capital Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QRC, the sentiment is Neutral. The current price of 7.19 is above the 20-day moving average (MA) of 7.07, above the 50-day MA of 6.73, and above the 200-day MA of 6.90, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
AGF.B	81 Outperform	C$819.34M	7.89	9.24%	3.80%	16.93%	17.52%
CVG	77 Outperform	C$1.07B	8.78	10.05%	0.13%	120.44%	―
GCG	71 Outperform	C$1.04B	15.07	5.62%	4.49%	35.78%	-24.67%
SEC	69 Neutral	C$856.58M	2.95	-7.43%	―	-8.45%	211.31%
FSZ	65 Neutral	C$725.47M	18.90	13.09%	11.27%	3.59%	-43.99%
QRC	62 Neutral	C$358.24M	4.36	-10.45%	0.04%	6.43%	-129.11%
Sector *	61 Neutral	C$15.12B	6.81	23.28%	5.39%	33.61%	-23.38%

Queen's Road Capital Investment Corporate Events

Queen’s Road Capital Acknowledges Potential Adriatic Metals Takeover

Queen’s Road Capital Investment Ltd. has acknowledged Adriatic Metals PLC’s ongoing discussions with Dundee Precious Metals Inc. regarding a potential acquisition offer. Queen’s Road Capital, a significant shareholder in Adriatic following a US$20 million investment converted into shares, views such takeover discussions as aligned with its investment strategy of targeting high-quality assets. The company continues to support Adriatic as its Vares mine nears commercial production, indicating potential positive impacts on its investment portfolio and market positioning.