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Queen's Road Capital Investment Ltd. (TSE:QRC)
:QRC
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Queen's Road Capital Investment (QRC) AI Stock Analysis

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TSE:QRC

Queen's Road Capital Investment

(TSX:QRC)

Rating:62Neutral
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 (QRC) vs. iShares MSCI Canada ETF (EWC)

Queen's Road Capital Investment Business Overview & Revenue Model

Company DescriptionQueen'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 MoneyQueen'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
40
Negative
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
65
Positive
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
55
Neutral
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue23.20M10.29M8.51M71.39M17.09M
Gross Profit21.28M10.04M6.36M70.70M16.67M
EBITDA20.06M4.67M-2.71M67.03M7.46M
Net Income18.04M4.34M-4.17M67.03M5.11M
Balance Sheet
Total Assets282.86M237.24M232.57M149.22M79.81M
Cash, Cash Equivalents and Short-Term Investments1.09M14.75M34.51M2.16M25.00M
Total Debt31.75M316.09K496.75K0.000.00
Total Liabilities32.86M1.29M1.50M172.71K473.77K
Stockholders Equity250.00M235.95M231.08M149.05M79.33M
Cash Flow
Free Cash Flow7.24M3.61M637.70K627.69K
Operating Cash Flow7.24M3.61M637.70K627.69K
Investing Cash Flow-47.86M-21.02M-45.61M-23.57M
Financing Cash Flow26.97M-2.23M77.68M0.0064.34M

Queen's Road Capital Investment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.19
Price Trends
50DMA
6.73
Positive
100DMA
6.51
Positive
200DMA
6.90
Positive
Market Momentum
MACD
0.10
Positive
RSI
57.46
Neutral
STOCH
85.32
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
C$819.34M7.899.24%3.80%16.93%17.52%
77
Outperform
C$1.07B8.7810.05%0.13%120.44%
71
Outperform
C$1.04B15.075.62%4.49%35.78%-24.67%
69
Neutral
C$856.58M2.95-7.43%-8.45%211.31%
65
Neutral
C$725.47M18.9013.09%11.27%3.59%-43.99%
62
Neutral
C$358.24M4.36-10.45%0.04%6.43%-129.11%
61
Neutral
C$15.12B6.8123.28%5.39%33.61%-23.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:QRC
Queen's Road Capital Investment
7.15
-0.34
-4.54%
TSE:SEC
Senvest Capital
351.25
-19.50
-5.26%
TSE:CVG
Clairvest
74.34
2.18
3.02%
TSE:FSZ
Fiera Capital A
6.70
-1.42
-17.49%
TSE:GCG
Guardian Capital
44.15
2.33
5.57%
TSE:AGF.B
AGF Management B NV
12.59
4.56
56.79%

Queen's Road Capital Investment Corporate Events

M&A TransactionsBusiness Operations and Strategy
Queen’s Road Capital Acknowledges Potential Adriatic Metals Takeover
Positive
May 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025