Queen's Road Capital Investment (QRC) AI Stock Analysis

• Market Cap: C$317.13M
• Dividend Yield: 3.31%
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.64
• Revenue Growth: -33.31%
• EPS Growth: -157.56%
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): -1.19
• Shares Outstanding: 49,941,605
• 10 Day Avg. Volume: 2,065
• 30 Day Avg. Volume: 1,585
• PEG Ratio: 0.03
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Queen's Road Capital Investment's stock is moderately positioned with strong gross margins but challenged by weak profitability and cash flow issues. The technical analysis presents mixed signals, while valuation concerns arise due to a negative P/E ratio. However, corporate governance initiatives provide a positive outlook for operational efficiency and shareholder value enhancement.

Queen's Road Capital Investment Business Overview & Revenue Model

Company Description

Queen's Road Capital Investment Ltd., a resource focused investment company, invests in privately held and publicly traded resource companies. It acquires and holds securities of long-term capital appreciation with a focus on convertible debt securities and resource projects. The company was formerly known as Lithion Energy Corp. and changed its name to Queen's Road Capital Investment Ltd. in January 2020. Queen's Road Capital Investment Ltd. was incorporated in 2011 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Queen's Road Capital Investment makes money primarily through its strategic investments and financial instruments in the resource sector. The company generates revenue from interest payments and dividends received from its investments in convertible debentures and equity positions in resource companies. Additionally, QRC benefits from capital appreciation of its investments, which occurs when the value of the companies it invests in increases over time. The company’s revenue is also influenced by its ability to identify and invest in high-potential projects and partnerships within the mining and energy sectors, leveraging its expertise and network to maximize returns for its stakeholders.

Queen's Road Capital Investment Financial Statement Overview

Summary

Queen's Road Capital Investment exhibits strong gross margins but faces challenges with profitability due to high operating expenses. The balance sheet is robust with low leverage, but the cash flow statement highlights concerns regarding cash generation and usage. Overall, the company needs to address its cost structure to stabilize earnings and enhance shareholder value.

Income Statement

The income statement shows a decline, with TTM revenue down to $15.35M from $23.20M last year. Gross profit margin is strong at 93.73% TTM but EBIT and net profit margins are negative due to significant expenses, leading to a net loss. Revenue growth has been inconsistent, indicating volatility in earnings.

Balance Sheet

The balance sheet is relatively stable, with a solid equity base. The debt-to-equity ratio is low at 0.14, indicating good financial health. However, the equity ratio slightly decreased to 87.48%. The company maintains a strong cash position, but there is a noticeable increase in liabilities.

Cash Flow

Cash flows are moderate, with positive operating cash flow of $8.11M TTM. However, free cash flow growth is stagnant. The operating cash flow to net income ratio is distorted due to net losses, suggesting cash flow management challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
15.35M	23.20M	10.29M	3.88M	71.39M	17.09M
	Gross Profit
14.39M	21.28M	10.04M	3.78M	70.70M	16.67M
	EBIT
-36.77M	19.96M	0.00	-2.43M	66.95M	9.78M
	EBITDA
-36.77M	20.06M	4.67M	-2.36M	0.00	7.46M
	Net Income Common Stockholders
-39.09M	18.04M	4.34M	-4.16M	67.02M	2.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.15M	1.09M	14.75M	34.51M	2.16M	25.00M
	Total Assets
350.32M	282.86M	237.24M	232.57M	149.22M	79.81M
	Total Debt
28.51M	31.75M	316.09K	496.75K	0.00	0.00
	Net Debt
24.35M	30.66M	-14.43M	-34.01M	-2.16M	-25.00M
	Total Liabilities
29.89M	32.86M	1.29M	1.50M	172.71K	473.77K
	Stockholders Equity
320.44M	250.00M	235.95M	231.08M	149.05M	79.33M
Cash Flow		Free Cash Flow
8.11M	7.24M	3.61M	637.70K	627.69K	―
	Operating Cash Flow
8.11M	7.24M	3.61M	637.70K	627.69K	―
	Investing Cash Flow
-31.64M	-47.86M	-21.02M	-45.61M	-23.57M	―
	Financing Cash Flow
20.61M	26.97M	-2.23M	77.68M	0.00	64.34M

Queen's Road Capital Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QRC, the sentiment is Negative. The current price of 6.35 is below the 20-day moving average (MA) of 6.44, above the 50-day MA of 6.29, and below the 200-day MA of 7.00, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QRC.

Queen's Road Capital Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	80 Outperform	C$743.32M	7.57	8.68%	4.13%	20.65%	-2.36%
CVG	77 Outperform	C$997.21M	7.96	10.69%	0.14%	120.44%	―
GCG	70 Outperform	C$1.03B	14.37	5.62%	3.55%	35.78%	-24.67%
SEC	69 Neutral	C$769.94M	2.95	-7.43%	―	-8.45%	211.31%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
FSZ	58 Neutral	C$664.50M	16.90	13.09%	14.04%	3.59%	-43.99%
QRC	56 Neutral	C$317.13M	4.36	-15.54%	3.31%	-33.31%	-157.56%

Queen's Road Capital Investment Corporate Events

Queen’s Road Capital Confirms AGM Outcomes and Share Consolidation

Queen’s Road Capital Investment Ltd. recently held its Annual General Meeting, where over 30% of the company’s shares were represented. Shareholders approved the election of the board of directors, the appointment of KPMG LLP as auditors, and a share consolidation effective January 15, 2025. These decisions are expected to streamline operations and potentially enhance shareholder value.