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VIQ Solutions (VQS-X)
CVE:VQS
7.10
0.05
(0.70%) 1d
Financials
Technical Analysis
This summary was created by AI, based on 1 opinions in the last 12 months.
VIQ Solutions (VQS-X) has reported encouraging financial results, with revenue reaching $11.6 million, reflecting a 10% year-over-year growth. The company has also improved its net loss to $0.6 million, down from $3.6 million in the previous year, which signals a positive trend in profitability. Additionally, the adjusted EBITDA of $0.8 million marks an increase of $1.7 million from the last year, indicating solid operational improvements. However, despite these advancements, the firm is relatively small with a market capitalization of only $12.65 million, leading to skepticism about its ability to maintain this growth trajectory in the long term. Overall, while the demand for its artificial intelligence solutions is rising, investors should remain cautious due to the company's size and inherent risks.
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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Their specialty is secure recordings of audio and conversations for courts. They continue to do a lot of pilot projects. Earnings results have not yet shown up.
They were in the court recording technology area, but now morphed it into all kinds of video data, such as police departments. It had a nice turnaround and they are generating nice cash flow and are a pretty good earnings story.
Automating digital recordings of video. The new management team has set some great plans for going forward.
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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