Quantum Software SA (QNT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Quantum Software SA ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.71

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.71

Poor long term growth as Operating profit has grown by an annual rate -12.81% of over the last 5 years

Negative results in Mar 26

PRE-TAX PROFIT(Q) At PLN -0.3 MM has Fallen at -121.22%
NET PROFIT(Q) At PLN -0.36 MM has Fallen at -127.5%
RAW MATERIAL COST(Y) Grown by 15.73% (YoY)

With ROE of 20.63%, it has a fair valuation with a 1.97 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 13.14%, its profits have fallen by -20.2%

Underperformed the market in the last 1 year

The stock has generated a return of 13.14% in the last 1 year, much lower than market (Poland WIG) returns of 37.02%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Quantum Software SA should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Quantum Software SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Quantum Software SA

25.18%

0.32

60.72%

Poland WIG

37.09%

2.22

16.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.86%

EBIT Growth (5y)

-12.81%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

2.86

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

47.06%

Pledged Shares

Institutional Holding

ROCE (avg)

28.46%

ROE (avg)

21.35%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.97

EV to EBIT

8.91

EV to EBITDA

7.37

EV to Capital Employed

2.60

EV to Sales

0.62

PEG Ratio

Dividend Yield

5.70%

ROCE (Latest)

29.15%

ROE (Latest)

20.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 4.04 MM

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At PLN -0.3 MM has Fallen at -121.22%

NET PROFIT(Q)

At PLN -0.36 MM has Fallen at -127.5%

RAW MATERIAL COST(Y)

Grown by 15.73% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.5 times

Here's what is working for Quantum Software SA

Operating Cash Flow

Highest at PLN 4.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Here's what is not working for Quantum Software SA

Pre-Tax Profit

At PLN -0.3 MM has Fallen at -121.22%

over average net sales of the previous four periods of PLN 1.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -0.36 MM has Fallen at -127.5%

over average net sales of the previous four periods of PLN 1.31 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Debtors Turnover Ratio

Lowest at 4.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 15.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales