I do not own this stock of Quarterhill Inc (TSX-QTRH, NASDAQ-QTRH). I am still following stock because I once owned it. I held it from 2000 to 2006 and basically lost all my investment. It was called Wi-Lan (TSX-WIN, NASDAQ-WILN) at that time.
When I was updating my spreadsheet, I noticed there relatively a lot of insider buying. However, both the CEO and CFO has recently step down. They seem to have a new CFO according to INK, but their site does not say this. But there is an announcement of the CFO leaving here. According to a Newswire the CEO has left and they are looking for a replacement.
Dividend yields have been all over the place, with low, moderate, good, and high yields. The high is almost 16% and low was 0.74%. The current yield is moderate at 2.76%. The 5, 10 and historical median dividend yield are all also moderate at 4.57%, 2.53% and 2.53%.
The Dividend Payout Ratios are mostly noncalculable due to EPS losses and negative CF. I cannot calculate the DPR for 2018 for either EPS or CFPS. I also cannot calculate the 5 year coverage for EPS. The 5 year coverage for CFPS is 30%. You cannot calculate DPRs when you have earnings losses and negative CF. The DPR for Free Cash Flow cannot be calculated except for the 5 year coverage and that is 26%. A lot of the FCF is negative.
Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2018 is 0.00 (as debt very low). The Liquidity Ratio is very good at 3.39 with a 5 year median at 3.39. The Debt Ratio is very good at 7.30 with a 5 year median at 6.23. The Leverage and Debt/Equity Ratios are also very good at 1.16 and 0.16 with 5 year ratios at 1.18 and 0.18.
The Total Return per year is shown below for years of 5 to 20 to the end of 2018 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below. Dividends are paid in CDN$.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | -20.25% | -12.50% | -17.83% | 5.33% |
| 2008 | 10 | 8.01% | 8.78% | 0.54% | 8.24% |
| 2003 | 15 | -4.42% | -7.76% | 3.34% | |
| 1998 | 20 | 2.75% | -0.60% | 3.35% |
The Total Return per year is shown below for years of 5 to 17 to the end of 2018 in US$.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | -24.12% | -17.09% | -21.73% | 4.64% |
| 2008 | 10 | 4.91% | 7.05% | -1.49% | 8.54% |
| 2003 | 15 | -3.69% | -7.47% | 3.77% | |
| 2001 | 17 | -1.88% | -5.48% | 3.60% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.75, 21.68 and 31.61. The corresponding 10 year ratios are 4.81, 8.36 and 10.72. The corresponding historical ratios are all negative at 3.47, 9.27 and 17.82. The current P/E Ratio is 27.24 based on a stock price of $1.81 and 2019 EPS estimate of $0.05. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$.
I get a Graham Price of $1.86. The 10 year low, median, and high median Price/Graham Price Ratios are 0.69, 1.06 and 1.45. The current P/GP Ratio is 0.97 based on a stock price of $1.81. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in CDN$.
I get a 10 year median Price/Book Value per Share Ratio of 1.34. The current P/B Ratio is 0.79 based on stock price of $1.38, Book Value of $207M, Book Value per Share of $1.74. The current ratio is some 41% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You get similar results in CDN$.
I get an historical median dividend yield of 2.53%. The current dividend yield is 2.76% based on dividends of $0.05 and a stock price of $1.81. The current dividend is 9.2% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in CDN$. Dividends are paid in CDN$.
The 10 year median Price/Sales (Revenue) Ratio is 4.42. The current P/S Ratio is 1.21 based on a stock price of $1.38, 2019 Revenue estimate of $135M and Revenue per Share of $1.14. The current ratio is 76% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You get similar results in CDN$.
Results of stock price testing is that the stock price is probably cheap to reasonable. Most of the stock price testing is fine. In regards to the P/E Ratio testing and the P/E Ratios are all over the place and not good to use to test the stock price. I also wonder about the Dividend Yield Test as dividends have declined a lot lately.
Is it a good company at a reasonable price? The stock price is probably cheap to reasonable. This company has had a very checkered past and has shifted what it does for a living and now says it is going into the Internet of Things. It is into the latest tech talk with the Internet of Things. It is a small cap and extremely risky. It has not made much money for its shareholders in the past. I would not currently be interested in this stock.
When I look at analysts’ recommendations, I find Strong Buy (1) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $1.38 US$. This is the current US$ price of this stock. So, any gain would be just the dividend of 2.76%.
See what analysts are saying on Stock Chase . They mostly like it because it is the Internet of Things. Will Ashworth on Motley Fool thinks this is a small cap with watching. A writer on Simply Wall Street talks about ownership and shows most is owned by the General Public. A writer on CNW Group talks about a litigation by Quarterhill. The company announces on .
Quarterhill Inc is engaged in acquiring technology companies working in the internet of things. Some of the companies acquired are Willan which develops and commercializes patented technologies, international road dynamics which is a provider of intelligent transportation systems, and VIZIYA which is a software service provider. Its segment consists of Technology, Mobility, Factory, and Corporate. Its web site is here Quarterhill Inc.
The last stock I wrote about was about was Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more. The next stock I will write about will be Chesswood Group Ltd (TSX-CHW, OTC-CHWWF) ... learn more on Friday, November 29, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – John Schwinghamer.... learn more on Thursday, November 28, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
No comments:
Post a Comment