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Bullboard - Stock Discussion Forum Quarterhill Inc T.QTRH

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

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... see more

TSX:QTRH - Post Discussion

Quarterhill Inc > Transcore2.0
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Post by takeomega3 on Jan 22, 2024 8:12pm

Transcore2.0

Quarterhill is like a completely new company with fresh executives. It could be called Transcore2.0. 

 

The impact of the current executives on IRD and ETC's performance remains uncertain. While IRD seems poised to perform well independently, my concern lies with ETC. Aside from Chuck or Rusty collaborating with Kevin (President of ETC) to manage workloads and drive improvements, the extent of their influence is unclear. It appears that Quarterhill may be a top-heavy organization.

 

On a positive note, the executives are evidently cognizant of the company's issues, particularly with existing projects suffering from cost overruns and low margins due to poorly bid projects. They have pledged to implement new strategies for bidding on future projects to ensure healthier financial outcomes.

 

As a side note, considering the way ST Engineering acquired Transcore, there's a chance they might show interest in acquiring Quarterhill in the future. The acquisition of Transcore with an EBITDA multiple of 20 times indicates their strong interest in the ITS sector. Nevertheless, I find it improbable that they would be willing to offer a similar EBITDA multiple for Quarterhill, at least from my perspective.

Comment by cabbieJBJ on Jan 22, 2024 9:44pm
I appreciate your perspective takeomega3.  Here are other tidbits, in addition to ST Engineering, to chew on... ETC has been involved with at least two WSP-USA led projects since the QTRH acquisition.  In addition, QTRH's EVP - Strategy hire, David Sparks, was a SVP at WSP-USA until joining QTRH in early December 2023. Of further interest is the recently closed acquisition ...more  
Comment by ElJ on Jan 23, 2024 12:19am
There would be some "high-rise" numbers associated with EBIDTA X20 if one projects using each of the three quarters EBIDTA per share results released in 2023; and for a full year 2023 EBIDTA I anticipate in the region of $0.23 /share... and these are US dollar numbers. Even at X15 this would represent a big price rise, which I guess is part of the investment interest here, Peace, Good ...more  
Comment by cabbieJBJ on Jan 23, 2024 3:51pm
Checked my notes and the Q-Free acquisition was 15.6x trailing 12-month EBITDA, not 20x as posted above.   Sorry for the bad info.
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