Questor Technology Inc is an attractive growth stock
05.05.2015 • About Questor Technology Inc (
$QST) • By InTwits
Have you thought about Questor Technology Inc as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Questor Technology Inc showed fast growth in the last financial year. The company's revenue surged on 29.7% in FY2014. In addition to revenue Questor Technology Inc also keeps delivering EBITDA growth. It was 26.9% in FY2014
If we look for the longer period Questor Technology Inc showed fast revenue growth of 26.8% from 2011 to 2014 annually. EBITDA surged on 40.4% from 2011 to 2014 annually.
Questor Technology Inc ($QST) financials for the last 5 years
| mln. CAD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 6 | 6 | 7 | 10 | 12 |
|---|
| Revenue growth, % | | 5.3% | 9.7% | 43.2% | 29.7% |
|---|
| Gross margin, % | 34.3% | 46.8% | 46.0% | 49.4% | 51.0% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 1 | 2 | 2 | 3 | 4 |
|---|
| EBITDA growth, % | | 79.0% | 12.2% | 94.5% | 26.9% |
|---|
| EBITDA margin, % | 14.8% | 25.1% | 25.7% | 34.9% | 34.1% |
|---|
| Net Income | 0 | 1 | 1 | 3 | 3 |
|---|
| Net Income margin, % | 7.69% | 19.5% | 15.6% | 26.6% | 23.5% |
|---|
| |
| CAPEX | 0 | 1 | 1 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 0.630% | 23.2% | 11.5% | 2.16% | 1.75% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 4 | 2 | 4 | 7 | 6 |
|---|
| Net Debt/EBITDA | -4.7x | -1.4x | -2.6x | -2.2x | -1.3x |
|---|
| |
| ROIC, % | 10.9% | 18.7% | 17.1% | 29.2% | 28.8% |
|---|
| ROE, % | 7.6% | 17.8% | 13.2% | 25.9% | 22.7% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 34.9% in FY2013 to 34.1% in FY2014. If we look for the longer period Questor Technology Inc's EBITDA margin surged on 9 pp from 25.1% in 2011 to 34.1% in 2014.
We call Questor Technology Inc an attractive growth stock as together with the growth it delivers high ROIC at 28.8%. Three years ago it was considerably lower at 18.7%. It's average ROIC for the last three years was 25.0%.
Net Income margin dropped on 3.10 pp from 26.6% to 23.5% in 2014. If we look for the longer period the company's Net Income margin surged on 4 pp from 19.5% in 2011 to 23.5% in 2014.
Questor Technology Inc operates at ROE of 22.7%. It's average level of ROE for the last three years was 20.6%.
Capital expenditures (CAPEX)
Questor Technology Inc's CAPEX/Revenue was 1.75% in FY2014. The company's CAPEX/Revenue dropped on 21.4 pp from 23.2% in 2011 to 1.75% in 2014. Average CAPEX/Revenue for the last three years was 5.15%.
Leverage (Debt)
Questor Technology Inc has negative net debt at -1.3x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 0.08x from -1.42x in 2011 to -1.33x in 2014.
Valuation vs. comparable companies
At the end of trading day today Questor Technology Inc traded at 9.7x EV/EBITDA which is 40.6% lower than 16.3x Industrial peer group avearge calculated on the basis of 168 companies. The market closed today at 16.0x P/E for Questor Technology Inc which is 31.7% lower than 23.5x Industrial peer group avearge calculated on the basis of 47 companies.
Peers in Industrial
Below you can find Questor Technology Inc benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Electrovaya Inc ($EFL) | | 104.3% | -4.0% | -71.2% | 160.5% |
| Enterprise Group Inc ($E) | | 14.5% | 3.5% | 88.3% | 128.5% |
| Carmanah Technologies Corp ($CMH) | | 5.8% | -26.4% | -2.0% | 68.8% |
| Exco Technologies Ltd ($XTC) | | 22.4% | 19.7% | 0.9% | 50.5% |
| Lumenpulse Inc ($LMP) | | | 56.7% | 33.9% | 47.0% |
| |
|---|
| Median (86 companies) | | 13.3% | 10.3% | 4.9% | 9.4% |
|---|
| Questor Technology Inc ($QST) | | 5.3% | 9.7% | 43.2% | 29.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| WSP Global Inc ($WSP) | 39.8% | 81.1% | 81.1% | 83.2% | 81.0% |
| Pure Technologies Ltd ($PUR) | 64.5% | 75.7% | 77.9% | 78.0% | 77.5% |
| Alarmforce Industries Inc ($AF) | 69.7% | 76.4% | 75.0% | 76.5% | 72.2% |
| Epicore BioNetworks Inc ($EBN) | 61.3% | 59.0% | 60.8% | 63.2% | 64.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 58.1% | 54.0% | 57.2% | 59.2% | 62.9% |
| |
|---|
| Median (82 companies) | 23.0% | 23.2% | 23.9% | 23.4% | 23.5% |
|---|
| Questor Technology Inc ($QST) | 34.3% | 46.8% | 46.0% | 49.4% | 51.0% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 46.3% | 46.5% | 45.9% | 46.8% |
| Canadian Pacific Railway Ltd ($CP) | 32.2% | 28.1% | 26.1% | 32.4% | 43.7% |
| Vitreous Glass Inc ($VCI) | 31.8% | 29.0% | 31.4% | 32.2% | 37.8% |
| Progressive Waste Solutions Ltd ($BIN) | 31.8% | 32.2% | 30.7% | 33.1% | 34.0% |
| Photon Control Inc ($PHO) | 23.5% | 8.1% | 17.6% | 24.8% | 29.3% |
| |
|---|
| Median (79 companies) | 7.8% | 8.3% | 9.4% | 8.3% | 8.4% |
|---|
| Questor Technology Inc ($QST) | 14.8% | 25.1% | 25.7% | 34.9% | 34.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cargojet Inc ($CJT.A) | 3.1% | 6.8% | 7.0% | 6.3% | 54.1% |
| Newalta Corp ($NAL) | 11.9% | 17.2% | 21.7% | 34.5% | 35.1% |
| Enterprise Group Inc ($E) | 5.7% | 3.6% | 17.4% | 27.2% | 32.7% |
| ENTREC Corp ($ENT) | 0.0% | | 35.0% | 26.7% | 29.5% |
| Horizon North Logistics Inc ($HNL) | 17.4% | 25.1% | 26.5% | 16.3% | 24.1% |
| |
|---|
| Median (86 companies) | 2.2% | 2.3% | 3.1% | 3.8% | 3.2% |
|---|
| Questor Technology Inc ($QST) | 0.6% | 23.2% | 11.5% | 2.2% | 1.8% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Vitreous Glass Inc ($VCI) | 28.8% | 26.1% | 30.5% | 32.3% | 48.3% |
| Photon Control Inc ($PHO) | 92.6% | 10.1% | 21.0% | 44.4% | 38.0% |
| SNC-Lavalin Group Inc ($SNC) | 17.5% | 14.6% | 10.7% | 4.0% | 35.2% |
| Alarmforce Industries Inc ($AF) | 26.8% | 18.3% | 5.3% | 24.0% | 33.9% |
| Epicore BioNetworks Inc ($EBN) | 20.4% | 24.8% | 28.1% | 16.1% | 32.5% |
| |
|---|
| Median (87 companies) | 9.3% | 9.3% | 10.1% | 8.5% | 9.8% |
|---|
| Questor Technology Inc ($QST) | 10.9% | 18.7% | 17.1% | 29.2% | 28.8% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sigma Industries Inc ($SSG) | | | 4.4x | 11.3x | 225.9x |
| H2O Innovation Inc ($HEO) | | | | 4.2x | 73.2x |
| Cargojet Inc ($CJT.A) | 1.5x | 1.8x | 1.5x | 1.5x | 31.5x |
| IBI Group Inc ($IBG) | 3.6x | 4.2x | 6.5x | | 8.3x |
| Conifex Timber Inc ($CFF) | | | | 2.7x | 6.1x |
| |
|---|
| Median (68 companies) | 1.0x | 1.1x | 1.5x | 1.5x | 1.3x |
|---|
| Questor Technology Inc ($QST) | -4.7x | -1.4x | -2.6x | -2.2x | -1.3x |
