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

• Market Cap: C$353.59M
• Dividend Yield: 0.3%
• Average Volume (3M): 13.00K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.72
• Revenue Growth: 6.43%
• EPS Growth: -129.11%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management
• EPS (TTM): 1.13
• Shares Outstanding: 49,941,605
• 10 Day Avg. Volume: 12,214
• 30 Day Avg. Volume: 12,996
• PEG Ratio: 0.04
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.74
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 17.10
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: C$6.50
• Price Target Upside: -8.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: C$7.50 ▲(6.08%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., 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 primarily through its strategic investments and financial instruments in the resource sector. The company generates revenue from interest payments and dividends received from its investments in convertible debentures and equity positions in resource companies. Additionally, QRC benefits from capital appreciation of its investments, which occurs when the value of the companies it invests in increases over time. The company’s revenue is also influenced by its ability to identify and invest in high-potential projects and partnerships within the mining and energy sectors, leveraging its expertise and network to maximize returns for its stakeholders.

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: Positive
• Last Price: 7.07
• 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 7.07 is above the 20-day moving average (MA) of 6.95, above the 50-day MA of 6.66, and above the 200-day MA of 6.90, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.95 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
AGF.B	81 Outperform	C$825.51M	7.86	9.24%	3.96%	16.93%	17.52%
CVG	77 Outperform	C$1.09B	8.99	10.05%	0.13%	120.44%	―
FSZ	72 Outperform	C$715.82M	18.38	13.09%	8.87%	3.59%	-43.99%
GCG	71 Outperform	C$1.07B	15.46	5.62%	3.43%	35.78%	-24.67%
SEC	69 Neutral	C$819.59M	2.95	-7.43%	―	-8.45%	211.31%
Sector *	67 Neutral	$16.77B	11.74	9.77%	3.75%	12.07%	-8.28%
QRC	62 Neutral	C$353.59M	4.36	-10.45%	0.30%	6.43%	-129.11%

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.