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Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)Stocks and gold climbYields and TSX climb, tech downThis summary was created by AI, based on 9 opinions in the last 12 months.
Quarterhill Inc, with the symbol QTRH-T, has gone through significant changes in the past 6 months, which have led to a brand new board and management team with extensive experience in the intelligent transportation space. The company is seeing positive growth in the tolling and enforcement business, with a revenue backlog exceeding $500M. It has also sold its IP patent portfolio business to become a pure-play transportation solutions provider, which is expected to result in a massive re-rating when institutions come back in. The stock is currently considered undervalued and has a yield of 3.97%
One of his biggest positions. Fantastic board, much-improved management team with wonderful expertise in a great space. Focused on driving shareholder value. Huge backlog. Should see improved margins. Insiders buying a lot of stock.
Producer of intelligent transportation systems (toll booths etc.). Large growth in sector with electronic demand. Share price coming back down to reasonable levels. Management performing well. Would continue to hold shares if already hold. Not top pick, but good business.
He was the lead activist investor. Since then, they have a brand new board and management board with serious experience. They're in a great space; huge infrastructure spending will happen in coming decades in intelligent transportation. They lead in electronic tolls in the US and lead in electronic weighing of vehicles. Insiders are buying a lot of stock in recent months, so they have a lot of confidence; this is rare and bodes well. Much upside ahead.
The company is seeing positive growth in the tolling and enforcement business, and it has a revenue backlog exceeding $500M. Its market cap is around $228M, and its price has begun to turnaround since the summer, where it announced a credit relief program for its subsidiary. The company expects a stronger Q4 as certain revenue from two of its tolling projects was pushed into subsequent periods due to scheduling adjustments. Its balance sheet is OK, profit margins have been improving (while still unprofitable), and its valuation is cheap (trading less than book value and a forward sales multiple of 1.2X). We feel this could be the beginnings of a turnaround for the company, but we would like to see sustained progress on its efforts towards profitability and growth.
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It has gone through tremendous changes in the past 6 months. He teamed up with others to buy 10% of the company and forced the board to make changes. It is in the Intelligent Transportation space and the board is now much more experienced in this area. Also the new CEO and Chairman have tremendous experience in this field and were part of a company that pioneered ITS. The balance sheet has been de-risked with the sale of Wi-Lan and the implementation stage of the transformed company is now over. There are also better margins now. It is very cheap so institutional investors may start to look at it again.
Sold IP patent portfolio business, used proceeds to pay off debt. Now a pure-play transportation solutions provider, a great business. Leading technology. Record backlog. Great new Board members. Undervalued. Expects a massive re-rating when institutions come back in, especially once new CEO is chosen. Anticipates better execution and financial de-risking.
Transportation services business (tech in infrastructure).
Not at large enough scale to justify in yet.
Will be successful for the long term, but waiting to buy.
Earlier in the year, QTRH's subsidiary, Quarterhill ITS, had fallen outside of certain covenant ratios (covenants required to maintain credit with the bank), but this updated credit agreement will secure a covenant relief period till the end of the year. Essentially, it helps the company maintain its debt levels and it provides the company with more working room to attempt to grow its operations and bring those ratios back in line with its covenants. Without the company being in line with its covenants, additional debt cannot be taken on, and this hinders future growth opportunities, thus a relief program gives the company more time to bring those ratios in line.
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World leaders in both electronic tolling and in weights and measures enforcement. Sold IP licensing, now pure-play intelligent transportation systems. This has piqued institutional interest. Huge backlog. Margins will improve. New Board members will bring new blood. Yield 3.97%.
(Analysts’ price target is $1.95)It has two segments, Wi-Lan which is a patent portfolio, and intelligent transportation systems. It is trying to sell Wi-Lan and this would be a good catalyst if it did. It has had disappointing margins and needs to get through the implementation phase on some of the contracts. Costs have been out of control and the CEO has suddenly stepped down which means he was probably fired. A new CEO could add another catalyst to the company. They are very critical of the Board.
Expects them to sell a division so they become a pure play in intelligent transportation systems only like e-toll lanes. Now have an $800 million backlog, because governments need more ways to collect money from drivers to pay for highways. Should fetch $1 per share once that division is sold, and that's when instutional investors will come in.
Quarterhill Inc is a Canadian stock, trading under the symbol QTRH-T on the Toronto Stock Exchange (QTRH-CT). It is usually referred to as TSX:QTRH or QTRH-T
In the last year, 9 stock analysts published opinions about QTRH-T. 7 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Quarterhill Inc.
Quarterhill Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Quarterhill Inc.
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.
9 stock analysts on Stockchase covered Quarterhill Inc In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Quarterhill Inc (QTRH-T) stock closed at a price of $1.87.
That's right. They've been severely beaten up over the last few years. Massive outflow of funds out of Canada, and it hits the smaller stocks even more. A lot of retail investors put in fund redemptions last year, so that created many bargains.
Over the last 6 months, he added to many of his small- and mid-cap positions. Companies like QTRH, JWEL, and EQB.