YTD - TSX index down (11.0%)/QTRH down (38.0%) September
TSX (4.6%)
QTRH (12.0%)
2.6X
Year to Date
TSX (11.0%)
QTRH (38.0%)
3.5X
One Year
TSX (6.3%)
QTRH (40.5%)
6.4X
On every time frame QTRH is going down much faster than the index.
The pivot to ITS has increased the riskiness of the business model and the linkage to the overall business cycle. And that risk is now also further magnified through the debt on the balance sheet.
How?
1. Wages: They've gone from 50 employees to 550 employees. More wage inflation exposure.
2. Inputs: They've gone from patents to parts, sourcing chips and other parts into sensors. More commodity pricing exposure
3. Energy: From storing patents on paper to storing billions of tolling transactions in the cloud, which require energy to run. Cloud storage prices increasing 50% this year. Gas prices crowd out ability to add tolls. More energy inflation exposure.
A very different business model. And very different risks.