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Quantum eMotion

QNC
23
Semiconductors · Technology
Price
$2.15
-0.08 (-3.79%)
Market Cap
$472.7M
Exchange
New York Stock Exchange American
Winston Score
23
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+79.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 104.0M (2021) → 186.7M (2025)

Quantum eMotion Corp. is a small Canadian technology company that builds security chips using quantum physics. Its core product is a hardware random number generator — a tiny chip that creates truly unpredictable codes, which makes encryption much harder to crack. The company targets cybersecurity applications, including connected devices, financial systems, and government communications.

Quantum eMotion makes money by selling or licensing its chip technology to device makers and security solution providers. It is headquartered in Montreal, Canada, and operates at a very early stage — the deeply negative margins show it is spending far more than it earns right now. The main growth driver is rising demand for stronger encryption as quantum computers threaten to break today's standard security methods, but the biggest risk is that the company is tiny, pre-revenue at scale, and competing against much larger, well-funded semiconductor and cybersecurity firms.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

Revenue data limited

EPS Growth

+15.4% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$1M/ year

Rising (+51% vs prior year)

>1,000% of revenue

640.8x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

3.3%ownership

Relatively low insider ownership

Cash Runway

~5 years

$40M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$40M cash & investments at current burn rate

Heavy R&D investment

Quantum eMotion is putting 9612% of revenue into R&D and that number is rising. That's 640.8x the sector average. With 5+ years of cash runway, they have time to let it pay off.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Operating Margin
-36734.2%
Losing money on operations — -36734.2%
ROCE
-9.5%
Weak — -9.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
N/A
Data not available
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-25290.0%
Burning cash (-25290.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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