Quarterhill Inc T.QTRH

Alternate Symbol(s): T.QTRH.DB | QTRHF

Technology Communication Equipment

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.

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Quarterhill Inc > Stepping out on a limb

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Post by cabbieJBJon Mar 27, 2024 1:07pm

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Post# 35955888

Stepping out on a limb

With the anaysts analyses published, I thought it might be valuable to also share my assumptions and projections for 2024/2025. The analysts are understandably conservative, as they should be, leaving room for additional data points and possible upgrades throughout the year.I'm more bullish, but will look at progress after Q2.

My projections are largely in line with the analysts except for revenue. The average revenue growth of the three analysts covering QTRH is +7.8% Y/Y for 2024 and +11.5% in 2025. This seems somewhat at odds with both management's sentiment on the Q4 call and 2023's performance of +22% on revenue and an expanding backlog. I'm projecting +18% Y/Y in 2024 and +25% Y/Y in 2025. I can do that because I don't need to consider upgrades/downgrades and have a reputaion, at least on this board, of being bullish on QTRH.

I use a 12x mutiple, which equates to a $4.00 target.

POVs and comments invited.

C$000,000s	Revenue	Gross Profit	Op-Ex	EBITDA
Analysts
2023	$194	$41	$39	$3
2024	$209	$58	$42	$14
2025	$233	$70	$45	$25

Cabbie
2023	$194	$41	$39	$3
2024	$230	$65	$47	$18
2025	$288	$88	$50	$38