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D-WAVE QUANTUM INC Ranks High in Growth Model Evaluation

D-WAVE QUANTUM INC has garnered a 44% rating based on a renowned growth model, indicating potential for future growth. However, some fundamental weaknesses could affect investor confidence.

Date: 
AI Rating:   5
Analysis of D-WAVE QUANTUM INC
In evaluating D-WAVE QUANTUM INC (QBTS), it has achieved a 44% rating based on the P/B Growth Investor model, which focuses on low book-to-market stocks with growth potential. While a rating above 80% typically indicates stock interest, a score of 44% may suggest that investors should approach with caution.

**Key Metrics Evaluation**
1. **Book/Market Ratio:** The stock passes this criterion, indicating it may present good value at its current price.
2. **Return on Assets:** This is a significant failure for the stock, suggesting it may not efficiently use its assets to generate profit.
3. **Cash Flow from Operations to Assets:** A passing grade here indicates the firm is generating operational cash flow, a likely positive signal.
4. **Cash Flow from Operations to Assets vs. Return on Assets:** The stock passes this test, potentially indicating an improvement in operational efficiency compared to asset utilization.
5. **Sales Variance, Advertising to Assets, Capital Expenditures to Assets:** All these areas have failed, which could reflect concerns regarding growth and investment in marketing or expansion.
6. **Research and Development to Assets:** The passing mark suggests that QBTS is investing adequately in future development, which is crucial for long-term sustainability.

Given these points, QBTS has strengths in its book/market ratio and sufficient R&D investment, but significant concerns exist regarding its Return on Assets and the variances in sales, advertising, and capital expenditures. Investors might view these weaknesses as detractors from overall growth potential, impacting their confidence and possibly the stock price.
Stocks:  QBTS