# Quarterhill Inc. (QTRH.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Specialty Retail. Price C$2.53, market value C$307 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Quarterhill Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 3.0×**. The shares trade at 3.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 173.1×**. Enterprise value is 173.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.5%** (5-yr avg -0.5%). Free cash flow equals 3.5% of the market value, above its five-year average of -0.5%, so the shares are cheaper on cash than they have usually been.

## Profitability
- **Gross margin: 24.9%**. Quarterhill Inc. keeps 24.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -6.2%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -35.1%**. The company reported a net loss over the last twelve months.
- **Return on equity: -66.5%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -8.4%**. Return on all capital, debt included, is -8.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -26.5%**. Each dollar of assets produces -26.5% of profit.

## Growth
- **Revenue growth (1 yr): 48.2%** (3-yr -0.3%/yr, 5-yr 1.8%/yr). Revenue grew 48.2% over the last year, against 1.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -576.3%**. Earnings per share fell 576.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -41.1%/yr**. Free cash flow has compounded at -41.1% a year over three years.

## Financial health
- **Debt to equity: 0.72**. Debt is 0.72 times equity, moderate leverage.
- **Net debt / EBITDA: 23.5×**. It would take 23.5 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: -1.5×**. Operating profit covers interest only -1.5×: fragile.
- **Current ratio: 0.96** (quick 0.87). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.82**. A Z-score of 2.82 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Quarterhill Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (4 analysts). 4 analysts cover Quarterhill Inc.; the consensus is strong_buy, with an average price target of C$5.29 (+109% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 94.6%** (YTD 166.3%, 3-mo 34.6%). The shares are up 94.6% over twelve months including dividends.
- **From 52-week high: -24.0%** (184.3% above the low). Trading 24% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 42**. An RSI of 42 is neutral.
- **Beta (1 yr): 0.61** (volatility 63%). Beta of 0.61 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=QTRH.TO · Page: https://foliofundamentals.com/stocks/qtrh.to

Not investment advice.