Q: Can you provide your comments on Quorum latest qtr. Also do you think it is fairly valued now?
5i Research Answer:
There is only one analyst, so we only have some estimate information. Sales were $9.95M, about 3% lower than estimates. Revenue fell 1% year over year. EPS was flat vs 2.9c last year. EBITDA rose 18% to $1.95M from $1.65M. SaaS revenue grew 2%. Debt declined, and net debt is now only about $8M, less than 2X cash flow. Customer count declined as the company focused on profitabiity rather than pure growth. The company is managing well, but growth as noted is fairly low here. With a 53% YTD gain, the stock is now 19X earnings. Considering its small size, some economic risk and some debt, we would not consider it cheap. We would like to see more growth to even justify the current valuation.