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

• Market Cap: C$648.34M
• Dividend Yield: 2.2%
• Average Volume (3M): 19.02K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.87
• 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: 51,050,064
• 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$13.50 ▲(16.38% 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

Very low leverage and rising equity provide durable financial flexibility for an investment lender. Low debt reduces refinancing and solvency risk during mining cycles, enabling QRC to continue deploying capital, absorb portfolio shocks and pursue opportunistic deals over months.

Downside-protected financing model

Use of secured loans, royalties and convertible structures provides built-in downside protection and multiple income channels. This durable business model generates recurring interest/fee income and optional equity upside, supporting steady cash yield and loss mitigation across cycles.

Strong recent profitability and margins

High recent net income and margins materially increased retained capital, strengthening the firm’s ability to finance new deals and return capital. Sustained profitability enhances balance sheet growth and capacity to support counterparties through resource-sector cycles over the medium term.

Negative Factors

Zero reported revenue in latest periods

Absence of reported revenue in the most recent periods reduces visibility into core recurring income streams such as interest and fees. This reliance on non-revenue accounting items or realizations makes forward income harder to forecast and elevates long-term earnings uncertainty.

Weak cash conversion of earnings

Operating cash flow materially lags reported profits, indicating earnings are driven by non-cash items or valuation marks. Poor cash conversion constrains internal funding for new investments or distributions and increases dependence on asset sales or external capital, weakening resilience.

Earnings cyclicality tied to resource markets

Pronounced year-to-year swings show returns are sensitive to commodity and market cycles. This structural volatility complicates forecasting, can force defensive capital moves in downturns, and may impair consistent dividend or deployment strategies over the medium term.

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 balance sheet with low leverage and growing equity supports resilience, but profitability is volatile (including a loss year and a recent period showing zero revenue alongside substantial net income). Cash flow is positive lately, yet cash conversion vs. reported earnings has been inconsistent, raising earnings-quality risk.

Income Statement

Profitability has been strong in most years, with very high profit margins in 2021 and solid margins again in 2023–2024. However, results are volatile: the company swung to a loss in 2022, and 2025 shows revenue falling to zero with gross profit turning negative despite very large reported net income, which raises questions about earnings quality and sustainability. Overall, the earnings profile looks high-return but inconsistent from year to year.

Balance Sheet

The balance sheet looks conservative with low leverage across the period: debt has generally been modest relative to equity, even in 2024–2025 when leverage rose but remained low. Equity and total assets have grown meaningfully into 2025, and returns on equity have been healthy overall (notably strong in 2021 and 2025), though the loss year in 2022 highlights that returns can fluctuate.

Cash Flow

Cash generation is mixed. Operating cash flow and free cash flow are positive in 2021–2025 and show growth in recent years, but there was negative operating cash flow in 2020 and cash conversion has been inconsistent (particularly in 2024–2025 where operating cash flow is relatively small versus reported earnings). This suggests cash realization can lag accounting profits, increasing volatility risk.

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: Negative
• RSI: Negative
• STOCH: Negative

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 above the 20-day moving average (MA) of 10.98, above the 50-day MA of 9.69, and above the 200-day MA of 7.71, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 89.52 is Negative, neither overbought nor oversold. The STOCH value of 95.58 is Negative, 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$395.21M	4.33	20.24%	1.43%	-73.34%	40.59%
STCK	71 Outperform	C$213.77M	4.54	26.60%	―	550.81%	―
ELC	70 Outperform	C$17.01M	2.03	49.20%	1.96%	―	―
OLY	70 Neutral	C$276.49M	12.88	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$648.34M	3.81	36.24%	2.20%	-1.35%	496.34%
AIM	51 Neutral	C$256.87M	-143.14	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.