Quantum Computing Inc. (NASDAQ: QUBT)

Sector: Technology Industry: Computer Hardware CIK: 0001758009
Market Cap 1.06 Bn
P/B 1.21
P/E -15.55
P/S 1,946.17
ROIC (Qtr) -5.91
Div Yield % 0.00
Rev 1y % (Qtr) 280.20
Total Debt (Qtr) 1.94 Mn
Debt/Equity (Qtr) 0.00

About

Quantum Computing Inc. (QCI), with the ticker symbol QUBT, is a prominent player in the technology industry, specifically focusing on the development and commercialization of quantum computing systems, software, and services. The company's main business activities center around the creation of quantum computing products, such as its flagship product, the Entropy Quantum Computing (EQC) system. This system uses the principles of quantum mechanics to solve complex optimization problems and operates at room temperature, utilizing low power consumption. The...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 835.59M provides 430.05x coverage of total debt 1.94M, indicating robust asset backing and low credit risk.
  • Tangible assets of 835.59M provide exceptional 2586.97x coverage of deferred revenue 323000, showing strong service capability backing.
  • Long-term investments of 257.47M provide solid 132.51x coverage of long-term debt 1.94M, indicating strategic financial planning.
  • Short-term investments of 203.14M provide solid 82.44x coverage of other current liabilities 2.46M, indicating strong liquidity.
  • Tangible assets of 835.59M provide robust 339.12x coverage of other current liabilities 2.46M, indicating strong asset backing.

Bear case

  • Operating cash flow of (23.05M) barely covers its investment activities of (469.04M), with a coverage ratio of 0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (469.04M) provide weak support for R&D spending of 18.23M, which is -25.73x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (23.05M) provides insufficient coverage of deferred revenue obligations of 323000, which is -71.37x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (23.05M) shows concerning coverage of stock compensation expenses of 9.36M, with a -2.46 ratio indicating potential earnings quality issues.
  • Free cash flow of (31.45M) provides weak coverage of capital expenditures of 8.40M, with a -3.74 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 164.72 Bn 49.07 19.50 0.00 Bn
2 DELL Dell Technologies Inc. 86.37 Bn 16.20 0.83 31.24 Bn
3 WDC Western Digital Corp 60.34 Bn 23.73 5.03 4.68 Bn
4 STX Seagate Technology Holdings plc 58.67 Bn 34.25 6.14 4.99 Bn
5 SNDK Sandisk Corp 34.41 Bn -19.78 4.42 1.35 Bn
6 PSTG Pure Storage, Inc. 21.84 Bn 167.52 6.27 0.23 Bn
7 HPQ Hp Inc 21.10 Bn 8.34 0.38 9.67 Bn
8 SMCI Super Micro Computer, Inc. 17.45 Bn 22.01 0.83 4.78 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 2.06
EV to Cash from Ops. EV/CFO -31.03 -0.65
EV to Debt EV to Debt 368.19 56.37
EV to EBIT EV/EBIT -10.81 2.89
EV to EBITDA EV/EBITDA -21.61 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF -22.75 -7.44
EV to Market Cap EV to Market Cap 0.67 7.64
EV to Revenue EV/Rev 1,310.23 78.30
Price to Book Value [P/B] P/B 1.21 -28.73
Price to Earnings [P/E] P/E -15.55 6.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.30
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.93
Interest Coverage Int. cover (Qtr) -30.73 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -169.49 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11,402.48 867.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -185.32 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -65.07 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -185.32 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) -185.62 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) -127.59 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) -53.25 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 126.14 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 96.98 7.26
Current Ratio Curr Ratio (Qtr) 154.87 13.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -3.57
Interest Cover Ratio Int Coverage (Qtr) -30.73 -105.42
Times Interest Earned Times Interest Earned (Qtr) -30.73 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -11,270.00 -629.92
EBIT Margin % EBIT Margin % (Qtr) -12,124.73 -683.67
EBT Margin % EBT Margin % (Qtr) -12,519.23 -687.58
Gross Margin % Gross Margin % (Qtr) 36.40 34.79
Net Profit Margin % Net Margin % (Qtr) -12,519.20 -692.43