/
The Company: A heritage of innovation Founded in 1984, the Company equips, leading automakers, governments and regulated industries with secure, reliable software that drives productivity, resilience and mission-critical performance. Based in Waterloo, Ontario, the Company has two core divisions, QNX and Secure Communications, each addressing large and growing market opportunities.
$10.18
$0.14 (-1.36%)
Price from 2 days ago
Operating margin is thin at 8.80%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.7%, essentially flat. This is a business that needs a catalyst.
At 113x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
113.1x earnings, 130.8x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$549M
▲ +2.7% YoY
Net Income (TTM)
$53M
▲ +167.3% YoY
Op. Margin
8.80%
▲ +8.6pp YoY
ROIC
4.40%
▲ +4.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$47M
▲ +247.0% YoY
Op. Cash Flow (TTM)
$50M
▲ +204.8% YoY
Net Debt
-$135M
Net Cash Position
Cash & Equiv.
$360M
5Y CAGR: -9.3%
5Y CAGR: -8.9%
Continue Research