CVE:QST

0.57
0.06 (11.76%) 1d
0
Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The experts' reviews indicate that Questor Technology (QST-X) is a microcap company with a strong balance sheet and a focus on waste gas combustion systems. Despite a recent decline in revenue and ongoing operating losses, the company has shown potential for growth, with a significant cash position and positive market reactions. However, the stock is considered highly volatile and carries a significant risk. The new management is still being observed for any potential turnaround in the company's performance.

Consensus
Positive
Valuation
Undervalued
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WAIT
Questor Technology
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

QST a microcap company that manufactures waste gas combustion systems, and is now trading at 0.8x times' Price/Book. In the 2Q, QST’s revenue declined by around 10% to $2.2M, compared to last year of $2.45M and EPS was -$0.02, flat compared to last year. The balance sheet is strong, with a net cash of $14.4M (market cap is around $24M). The company has been generating around $2M in cash flow in the trailing-twelve-months. There was a recent insider purchase, but the amount was not significant (around $50k in total). Overall, QST has some financial strength to endure a market downturn, but simply being public is a big cost to the company. Having said that, revenue growth in the last five years was quite cyclical, revenue in the trailing-twelve-month did not get back to FY2019 level, and the company is still operating at a loss. Based on consensus estimates, sales are expected to grow strongly, around 50% next year. We consider the name to be highly volatile, but there could be a floor of some sort given that most of the company's market cap is cash. The energy sector is its main customer and we are a bit surprised it hasn't done better considering this. The four new board members look fine, but we would like to be in the know of what happened internally. It is fairly unusual for a CEO to return after 'discussions' and get four Board members to flip. We think the new management needs time. Overall, we would not endorse this on size risk and cash flow alone. However, it is one to watch to see if any turn can be executed here. Sales overall are still half the level of nearly seven years ago, and this has to improve to generate any interest. 
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oil / gas field services
HOLD
Questor Technology
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

EPS of ($0.03) was in line with estimates and revenues of $1.66M missed estimates of $1.9M. Revenue grew by 55% for the quarter and this was largely due to increased sales activity, particularly in Canada where demand for tall stack units is high. 
Gross margins improved as the company focuses on cost control, and it managed to narrow its loss from ($2.3M) for the same period in the prior year to ($0.9M) in the recent quarter. 
The company incurred $1.0M for allowance for doubtful accounts on its long outstanding receivable on the Mexico project, as the customer has insufficient heat to run its power generation equipment. 
The company has a $29.2M equity position, and so we would consider it fairly contained at this point, but it is worth keeping an eye on. Management has noted they are working on a solution with the customer. 
We consider these good results, and the market has reacted positively so far.
We like the progress that management is making toward profitability while maintaining a high rate of growth. 
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oil / gas field services
DON'T BUY
Questor Technology
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Low O&G CAPEX hurting growth. Clean technology trends are supportive. Shift to rentals, declining unit sales.
oil / gas field services
PAST TOP PICK
Questor Technology
(A Top Pick Dec 27/19, Down 49%) They make highly efficient incinerators. The methane gas pollution that other incinerators create is banned in many US states, so Questor fills this gap its cleaner ones. So, there's a huge opportunity in the States, including Texas. The company is work. Further opportunities for the, but especially in garbage dumps.
oil / gas field services
COMMENT
Questor Technology
It's too small for him. It boasts $15 million cash for a $30 million company, which is impressive. Lots of cash flow. PE is too high. The stock tumbled and has flatlined. Now, you can start a partial position, then add if it falls 10-20% or shows technical strength.
oil / gas field services
WATCH
Questor Technology
This will be tied to the energy space. They produce technology to reduce field flaring from sour gas. They saw a great uptick in their stock price when the moved from manufacturing the equipment to renting it. He thinks when the gas sector picks up, this will move up quickly. He expects regulation for cleaner technologies will continue to increase. He does not own it -- yet.
oil / gas field services
HOLD
Questor Technology
He likes their story and has been difficult to but as he is waiting for an equity issue, but it never comes. He does not think they will raise money until they need it. The stock has had nice move and the liquidity is a challenge. Their are tailwinds behind it.
oil / gas field services
TOP PICK
Questor Technology
They operate mobile incinerators at oil wells, namely in Mexico. Free cash flow is up 58% YOY. Trailing ROE is 26%. Earnings will grow 29% in 2020, 23% in 2021. Trades at a good 8.6x PE in 2020. Expected 30% upside. (Analysts’ price target is $6.21)
oil / gas field services
BUY
Questor Technology

A company that makes incinerators that deal with excess gas when an oil well goes into production for the first time. There are regulations that help this business. Earnings estimate is $0.66 per share. There’s a new product that takes the heat to produce electricity. The outlook is strong.

oil / gas field services
WATCH
Questor Technology
Their breakthrough was in leasing not selling their units. There are more regulations over gas. He's watching it closely.
oil / gas field services
HOLD
Questor Technology
He likes the story. It is not that big of a company. It would be hard for him to buy enough of it. They have not done that badly because they have not diluted much. Hold it if you have it.
oil / gas field services
BUY
Questor Technology
Waste gas is not flared off but used for something useful. There had been a regulatory issue in Colorado and he thinks this has passed. It is well managed.
oil / gas field services
BUY
Questor Technology
They found a way to monetize waste in the combustion sector. They can do very, very well in the short to mid-term while we are still dependant on combustion technologies. A carbon tax makes their technologies that much more attractive. As we move away from combustion fuels, he would start to have concerns about this company.
oil / gas field services
BUY
Questor Technology
Natural gas flaring is their expertise as they incinerate natural gas off new wells. They have portable technology that gives them an advantage. They have great opportunities in Colorado and Texas. Regulation tightening will ensure they continue to do well. They continue to expand their technology and the future looks bright. The PE is 10.5 with earnings growth of 22% expected.
oil / gas field services
STRONG BUY
Questor Technology
They are specialists in helping burn and treat methane generated at an oil and gas location. Competing products don't do it completely. It does not need added fuel or assisted air velocity. In Mexico they are going to use it to also generate electricity. 10 times PE. The ROE is 48%. (Analysts’ price target is $6.50)
oil / gas field services
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Questor Technology(QST-X) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Questor Technology is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Questor Technology(QST-X) Frequently Asked Questions

What is Questor Technology stock symbol?

Questor Technology is a Canadian stock, trading under the symbol QST-X on the TSX Venture Exchange (QST-CV). It is usually referred to as TSXV:QST or QST-X

Is Questor Technology a buy or a sell?

In the last year, there was no coverage of Questor Technology published on Stockchase.

Is Questor Technology a good investment or a top pick?

Questor Technology was recommended as a Top Pick by on . Read the latest stock experts ratings for Questor Technology.

Why is Questor Technology 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 Questor Technology worth watching?

0 stock analysts on Stockchase covered Questor Technology In the last year. It is a trending stock that is worth watching.

What is Questor Technology stock price?

On 2024-05-24, Questor Technology (QST-X) stock closed at a price of $0.57.