Sound bite for Twitter is: Tech Sector Stock. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine, but Liquidity could improve. The company stopped paying dividends after paying the first on in 2023. Therefore, there is no dividend yield nor Dividend Payout Ratios (DPR). See my spreadsheet on Quarterhill Inc.
Is it a good company at a reasonable price? As far as I can see, this company has been struggling for quite a number of years to find a niche and make some money. It has not been terrible successful at this. The stock price is probably cheap, but that does not make it a good stock to buy. I like long term buys and I do not believe this is one.
I do not own this stock of Quarterhill Inc (TSX-QTRH, OTC-QTRHF). I bought this company in 2000 as WiLan Inc. (TSX-WIN, OTC-WILN. It was an up and coming company in communications. I sold it in 2006 after losing most of my investment. This stock has never recovered from the bubble that occurred in 2000. I lost all hope of ever making any money on this stock. The other thing is that they completely refocused their company to earn money on their patents. Then they changed their focus again to intelligent transportation systems.
When I was updating my spreadsheet, I noticed that the two directors I was following have left. The Chairman is the same. The CEO is the same, but there is a new CFO who was promoted from within the company. I set up two new officers, because I could no longer find the officers I was following.
Another thing I do not like is that they keep restating their financials. That is never a good sign. I seldom change my spreadsheets when companies restate their financial. They have had earning losses in 2023 and 2024. There was also an earnings loss in 2021. An earnings loss is expected in 2025 and perhaps some profit, but extremely low in 2026. For some of my testing’s I am using 2027 estimates, but caution is needed because the further out the estimates are, the more likely they are to be wrong.
If you had invested in this company in December 2014, for $1,002.24 you would have bought 288 shares at $3.48 per share. In December 2024, after 10 years you would have received $209.52 in dividends. The stock would be worth $472.32. Your total return would have been $681.84. This would be a total loss of 4.60% per year with 7.25% from capital loss and 2.65% from dividends. Note that dividends have been cancelled.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $3.48 | $1,002.24 | 288 | 10 | $209.52 | $472.32 | $681.84 |
The company stopped paying dividends after paying the first on in 2023. Therefore, there is no dividend yield nor Dividend Payout Ratios (DPR).
Debt Ratios are fine, but Liquidity could improve. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.08 and currently at 0.05. The Liquidity Ratio for 2024 is low at 1.39 and 1.05 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.33 and currently at 1.08. The Debt Ratio for 2024 is good at 2.32 and 2.11 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.75 and 0.75 and currently at 1.90 and 0.90.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.08 | 0.05 |
| Intang/GW | 0.58 | 1.16 |
| Liquidity | 1.39 | 1.02 |
| Liq. + CF | 1.33 | 1.08 |
| Debt Ratio | 2.32 | 2.11 |
| Leverage | 1.75 | 1.90 |
| D/E Ratio | 0.75 | 0.90 |
The Total Return per year is shown below for years of 5 to 26 to the end of 2024 in CDN$. 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.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 1.62% | -0.36% | 1.99% |
| 2014 | 10 | 0.00% | -4.60% | -7.25% | 2.65% |
| 2009 | 15 | 0.00% | 2.85% | -1.88% | 4.73% |
| 2004 | 20 | 4.17% | 0.19% | 3.98% | |
| 1999 | 25 | -6.62% | -8.00% | 1.38% | |
| 1998 | 26 | 3.22% | 0.34% | 2.87% |
The Total Return per year is shown below for years of 5 to 23 to the end of 2024 in US$. 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.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | -0.42% | -2.48% | 2.06% |
| 2014 | 10 | 0.00% | -6.90% | -9.35% | 2.45% |
| 2009 | 15 | 0.00% | -1.00% | -5.11% | 4.11% |
| 2004 | 20 | 3.98% | -0.55% | 4.53% | |
| 2001 | 23 | -0.78% | -3.56% | 2.79% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are 9.25, 13.11 and 16.98. The corresponding historical ratios are negative. The current ratio is negative and so cannot be used in testing. The P/E Ratios for 2026 and 2027 are 97.00 and 16.17. The P/E Ratio for 2027 is a good one to use and is based on a stock price of $0.97 and EPS estimate for 2027 $0.06. It is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price for 2027 is $ 1.37. The 10-year low, median, and high median Price/Graham Price Ratios are 0.56, 0.98 and 1.45. The 2027 ratio is 0.71 based on a stock price of $0.97. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 0.94. The current ratio is 0.69 based on a stock price of $0.97. Book Value of $163M and Book Value per Share of $1.40. The current ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any Price/Cash Flow per Share Ratio test because of negative cash flow.
I cannot do any dividend yield testing because dividends have been suspended or cancelled.
The 10-year median Price/Sales (Revenue) Ratio is 1.54. The current P/S Ratio is 0.70 based on Revenue estimate for 2025 of $162.6M, Revenue per Share of $1.39 and a stock price of $0.97. The current ratio is 57% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. This is from the P/S Ratio test which is one of the few tests that is a good one. The other good test is the P/B Ratio test and it also says that the stock price is cheap. The rest of the testing has problems. Note testing has been done in CDN$. Estimates are given in CDN$ and reporting is currently in CDN$.
When I look at analysts’ recommendations, I find Strong Buy (1), and Buy (2). The 12 month stock price consensus is $1.85 ($1.32 US$) with a high of $2.03 ($1.449 US$) and low of $1.69 ($1.203 US). The 12 month stock price consensus of $1.85 implies a total return of 90.76% all from capital gains based on a current stock price of $0.97.
There are two entries on Stock Chase for 20250. One is a buy and the other is a hold. The Hold says it has a good story, but it is stuck in neutral. Christopher Liew on Motley Fool says this stock is absurdly cheap and well-positioned for a breakout. This is the only entry on Motley Fool for 2025, so it is not well followed. The company put out a Press Release about its fourth quarterly results for 2024. The company put out a Press Release for its second quarterly results for 2025.
Simply Wall Street via Yahoo Finance put out a review on this stock. Simply Wall Street has two warnings of currently unprofitable and not forecast to become profitable over the next 3 years; and does not have a meaningful market cap (CA$128M).
Quarterhill Inc is focused on the acquisition, management, and growth of companies in the intelligent transportation systems (ITS) and innovation and licensing industries. Its geographical segments are the United States, Canada, Chile, China, Korea, Singapore, Taiwan, Thailand, Ukraine, and the Rest of the world. The majority of the revenue comes from the United States. 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 Guardian Capital Group (TSX-GCG.A, OTC-GCAAF) ... learn more on Wednesday, November 12, 2025 around 5 pm. Tomorrow on my other blog I will write about Retirement Planning Advice.... learn more on Tuesday, November 11, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.
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