Qatari German Company for Medical Devices (Q.P.S.C.) manufactures and sells single use disposable syringes in the Middle East. The company offers Q JectUltra, an insulin syringe serving as a tool in diabetic care; Q Flow for infusion therapy; Q Need, a single use hypodermic needle; Q Ject, a single use syringe for the curative medications; and Q Safe, a re-use prevention syringe. It also trades in medical equipment, tools, and supplies. Qatari German Company for Medical Devices (Q.P.S.C.) was incorporated in 2000 and is headquartered in Doha, Qatar.

Qatar

Qatari German Company for Medical Devices (Q.P.S.C.)

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

QGMD.QA reported revenue of QAR 5mn in the last 12 months, down 48% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 3% from FY24 to QAR -0.61.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 10ppts and its growth decelerated by 3ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -1066.7% in the last 12 months, a decline from 33.9% in FY23. 

Historically, QGMD.QA has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -1359.0%, down from 4.8% in FY23. 

Qatari German Company for Medical Devices (Q.P.S.C.) reported a return on equity (RoE) of -7080.8% in the last 12 months, down from 3.8% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -501.6%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -41.1% in the last 12 months, a decrease from 0.7% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -2.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

QGMD.QA has poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, weak debt servicing capacity, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure.

In highly turbulent market conditions, QGMD.QA is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, QGMD.QA is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to minimal. We would also like to highlight the minimal intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is trading at neutral levels on P/FCF. 

Qatari German Company for Medical Devices (Q.P.S.C.)

QAR 1.45

2

Qatari German Company for Medical Devices (Q.P.S.C.)

QAR 1.45

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

QAR 1.45

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