VIQ Solutions (VQS-X)
CVE:VQS
7.10
0.05
(0.70%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 1 opinions in the last 12 months.
VIQ Solutions (VQS-X) has demonstrated promising growth, recording a revenue increase of 10% year-over-year, amounting to $11.6 million. The company has made significant improvements in its financial performance, reducing its net loss to $0.6 million from $3.6 million the previous year. Additionally, adjusted EBITDA rose to $0.8 million, showcasing a substantial improvement of $1.7 million compared to last year. Although there is increasing demand for their AI solutions, the company is relatively small, with a market cap of only $12.65 million, leading to skepticism about the sustainability of this growth amid inherent risks associated with such a small enterprise. Overall, while the results appear solid, the uncertainties surrounding the company's size present a cautionary note.
VQS’s growth has accelerated in recent years driven mainly through acquisitions by issuing shares and it is now trading at 0.5x times' Price/Book. In the 4Q, VQS’s revenue grew 32% to $10.2M, missing the estimates of $10.7M and EPS is -$0.16 missing estimates of -$0.08. The balance sheet is quite leveraged, with net debt of $8M, compared to the trailing twelve-month cash flow of -$8.2M, and cash flow declined compared to $3.4M last year. Based on consensus estimates, sales are expected to grow by around 7% in the next two years.
The company has been growing mainly through share issuance to do acquisitions which we remain cautious on due to the risk of dilution. Also, the company is currently unprofitable, and cash flow is negative. We think there are better opportunities in the market. Overall, we consider the name to be highly volatile, we would be mindful of its size risks. Also, we would prefer to wait until profitability has been achieved.
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VIQ Solutions(VQS-X) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 1
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 1
VIQ Solutions(VQS-X) Frequently Asked Questions
What is VIQ Solutions stock symbol?
VIQ Solutions is a Canadian stock, trading under the symbol VQS-X on the TSX Venture Exchange (VQS-CV). It is usually referred to as TSXV:VQS or VQS-X
Is VIQ Solutions a buy or a sell?
In the last year, 1 stock analyst published opinions about VQS-X. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for VIQ Solutions.
Is VIQ Solutions a good investment or a top pick?
VIQ Solutions was recommended as a Top Pick by on . Read the latest stock experts ratings for VIQ Solutions.
Why is VIQ Solutions stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is VIQ Solutions worth watching?
1 stock analyst on Stockchase covered VIQ Solutions In the last year. It is a trending stock that is worth watching.
What is VIQ Solutions stock price?
On 2021-01-20, VIQ Solutions (VQS-X) stock closed at a price of $7.1.
VQS recorded Revenue of $11.6M increasing 10% year-over-year. Net loss was $0.6M which improved from a loss of $3.6M in the year prior. Adjusted EBITDA of $0.8M improved by $1.7M from the year prior. The company is seeing increased demand and profitability for its AI solution offerings albeit at a small scale. The results are solid but the company is so tiny at $12.65M in market cap, that we are skeptical if this can be sustained, in addition to the general size risk here.
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