Quarterhill (QTRH) AI Stock Analysis

• Market Cap: $154.00M
• Dividend Yield: N/A
• Average Volume (3M): 49.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 5.05%
• EPS Growth: 70.18%
• Country: CA
• Employees: 467
• Sector: Technology
• Sector Strength: 44
• Industry: Communication Equipment
• EPS (TTM): -0.13
• Shares Outstanding: 115,786,320
• 10 Day Avg. Volume: 41,447
• 30 Day Avg. Volume: 49,565
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.13
• Price to Cash Flow (P/CF): 6.70
• P/FCF Ratio: 7.90
• 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: $2.01
• Price Target Upside: 53.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Quarterhill's overall stock score is weighed down by significant financial and technical challenges, including declining revenues and bearish technical indicators. However, positive factors such as strategic initiatives, revenue growth guidance, and innovative corporate events provide a foundation for potential long-term improvement.

Quarterhill Business Overview & Revenue Model

Company Description

Quarterhill Inc. is a diversified investment holding company focused on acquiring technology companies in the Intelligent Transportation System (ITS) and Intellectual Property (IP) sectors. The company aims to create long-term value by investing in businesses that leverage technology to improve operational efficiencies. Its business operations span traffic management solutions, wireless communication technologies, and patent licensing.

How the Company Makes Money

Quarterhill generates revenue primarily through two key segments: the ITS segment and the IP segment. In the ITS segment, the company provides technology solutions for traffic management, which includes hardware and software systems that help municipalities and governments manage traffic flow and safety. This segment earns revenue through product sales, service contracts, and maintenance agreements. In the IP segment, Quarterhill monetizes its intellectual property portfolio by licensing patents and technology to other companies, often through litigation-driven strategies or strategic partnerships. The company’s earnings are bolstered by its ability to acquire and integrate complementary businesses that enhance its existing operations.

Quarterhill Financial Statement Overview

Summary

Quarterhill faces significant financial challenges with declining revenues, negative profitability margins, and cash flow issues. The balance sheet remains relatively stable, but high leverage and negative returns on equity pose potential risks. The company needs to address operational inefficiencies and improve its cash flow generation to enhance financial stability and performance.

Income Statement

Quarterhill has experienced declining revenues over recent periods, with a negative revenue growth rate of approximately -11% from 2023 to the TTM (Trailing-Twelve-Months) period. The company also struggles with negative net profit margins and EBIT margins, indicating operational inefficiencies. The gross profit margin has seen a significant decrease compared to previous years, which may reflect increased cost pressures or reduced pricing power.

Balance Sheet

The company's balance sheet shows a relatively stable equity ratio of around 56% in the TTM period, indicating a solid capital structure. However, the debt-to-equity ratio is relatively high at 0.48, which could pose financial risks if cash flows do not improve. The return on equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

Quarterhill's cash flow situation raises concerns, with negative free cash flow and operating cash flow in the TTM period. The free cash flow growth rate is negative, indicating deteriorating cash generation capability. Additionally, the ratios of operating and free cash flow to net income are unfavorable due to consistent net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
172.67M	194.32M	305.69M	125.69M	144.53M	191.66M
	Gross Profit
12.37M	40.60M	117.54M	37.44M	58.86M	95.21M
	EBIT
-9.04M	-24.11M	42.05M	-19.48M	9.93M	19.68M
	EBITDA
-8.79M	-8.92M	-15.67M	3.90M	30.53M	46.96M
	Net Income Common Stockholders
-19.72M	-49.99M	2.77M	-22.18M	4.43M	13.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.85M	56.62M	67.91M	72.60M	141.25M	89.62M
	Total Assets
329.02M	332.08M	411.94M	427.19M	303.81M	325.41M
	Total Debt
7.45M	86.54M	89.94M	115.90M	3.76M	8.92M
	Net Debt
-59.85M	29.92M	23.58M	45.15M	-131.94M	-79.15M
	Total Liabilities
55.91M	142.02M	154.28M	186.08M	31.88M	48.42M
	Stockholders Equity
273.11M	190.06M	257.66M	241.12M	271.93M	276.99M
Cash Flow		Free Cash Flow
-16.30M	-34.27M	30.92M	-19.92M	32.63M	6.53M
	Operating Cash Flow
-11.98M	-27.56M	39.61M	-13.34M	35.22M	9.86M
	Investing Cash Flow
598.00K	27.77M	-10.30M	-158.09M	41.44M	91.44K
	Financing Cash Flow
-3.52M	-9.05M	-42.89M	108.26M	-19.48M	―

Quarterhill Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QTRH, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.51, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 31.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QTRH.

Quarterhill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	77 Outperform	$11.88B	61.36	10.92%	―	16.07%	25.71%
ENGH	72 Outperform	$1.32B	15.55	14.76%	4.33%	8.11%	15.83%
CSU	71 Outperform	C$97.59B	97.45	30.90%	0.12%	21.56%	31.90%
OTEX	68 Neutral	$9.23B	10.35	16.00%	4.15%	-3.59%	432.46%
KXS	68 Neutral	C$4.88B	157.81	-0.10%	―	14.85%	-105.25%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
QTRH	47 Neutral	$154.00M	―	-8.01%	―	5.05%	70.18%

Quarterhill Corporate Events

Quarterhill Announces Virtual Shareholders Meeting and Board Nominees

Quarterhill Inc. announced its upcoming virtual Annual and Special Meeting of Shareholders scheduled for May 12, 2025. The meeting will feature the election of six nominees to the Board of Directors, including two new nominees, Asha Daniere and Stephen A. Smith, who bring extensive governance, legal, and financial expertise. This strategic move aims to enhance the Board’s diversity and expertise, supporting Quarterhill’s growth opportunities and long-term shareholder value.

Spark’s Take on TSE:QTRH Stock

According to Spark, TipRanks’ AI Analyst, TSE:QTRH is a Neutral.

Quarterhill’s overall stock score reflects significant financial and technical challenges, mitigated by positive strategic developments and a promising earnings outlook. The company’s financial health poses risks, but strategic initiatives and recent corporate events provide a foundation for potential long-term improvement.

To see Spark’s full report on TSE:QTRH stock, click here.

Quarterhill to Showcase Innovations at 2025 IBTTA Technology Summit

Quarterhill Inc. is set to exhibit at the 2025 IBTTA Technology Summit in Dallas, Texas, where it will showcase its advanced tolling technologies, including video-based vehicle classification systems and the Quantum LiDAR-based AVDC system. As a platinum sponsor with its U.S. headquarters in Dallas, Quarterhill will have a significant presence at the summit, highlighting its commitment to leveraging modern technologies to refine tolling operations and improve efficiency. The company’s participation underscores its strategic positioning in the industry, aiming to influence the future of tolling technology through innovative solutions and cross-industry insights.

Quarterhill Reports Fiscal 2024 Results and Strategic Progress

Quarterhill Inc. reported its financial results for Q4 and fiscal year 2024, showing a slight decrease in quarterly revenue but an overall increase for the year, attributed to strong performance in enforcement and tolling operations. The company made significant progress in its turnaround strategy, enhancing its financial foundation, operational efficiency, and technology, positioning itself for future growth and expansion.

Quarterhill to Release Fiscal 2024 Financial Results

Quarterhill Inc. is set to announce its fiscal 2024 financial results for the periods ending December 31, 2024, on March 17, 2025. The announcement, which will be accompanied by a conference call and webcast hosted by CEO Chuck Myers and Interim CFO Morgan Demkey, is crucial for stakeholders as it will provide insights into the company’s financial health and strategic positioning within the ITS industry.

Quarterhill Strengthens Board with Appointment of Robin Saunders

Quarterhill Inc. has appointed Robin Saunders to its Board of Directors, highlighting her extensive expertise in mergers and acquisitions, finance, and infrastructure investment. Saunders’ appointment is expected to align with Quarterhill’s growth strategy, bolstering its global position in the ITS industry and potentially driving long-term value for shareholders and stakeholders.