QUINSTREET INC (QNST) Stock Fundamental Analysis
NASDAQ:QNST - Nasdaq - US74874Q1004 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to QNST. QNST was compared to 71 industry peers in the Interactive Media & Services industry. While QNST seems to be doing ok healthwise, there are quite some concerns on its profitability. QNST is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year QNST was profitable.
In the past year QNST had a positive cash flow from operations.
In multiple years QNST reported negative net income over the last 5 years.
QNST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QNST has a Return On Assets (-2.96%) which is comparable to the rest of the industry.
QNST's Return On Equity of -5.41% is in line compared to the rest of the industry. QNST outperforms 56.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.96% | ||
| ROE | -5.41% | ||
| ROIC | N/A |
ROA(3y)-10.06%
ROA(5y)-3.98%
ROE(3y)-15.42%
ROE(5y)-6.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of QNST (9.36%) is worse than 93.94% of its industry peers.
In the last couple of years the Gross Margin of QNST has declined.
QNST does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.36% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.81%
GM growth 5Y-11.04%
2. Health
2.1 Basic Checks
QNST does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, QNST has more shares outstanding
The number of shares outstanding for QNST has been increased compared to 5 years ago.
There is no outstanding debt for QNST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
QNST has an Altman-Z score of 5.59. This indicates that QNST is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.59, QNST is doing good in the industry, outperforming 78.79% of the companies in the same industry.
QNST has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.59 |
ROIC/WACCN/A
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.37 indicates that QNST should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, QNST is doing worse than 63.64% of the companies in the same industry.
QNST has a Quick Ratio of 1.37. This is a normal value and indicates that QNST is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of QNST (1.37) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
QNST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1866.67%, which is quite impressive.
Measured over the past years, QNST shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.62% on average per year.
The Revenue has grown by 68.99% in the past year. This is a very strong growth!
Measured over the past years, QNST shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
EPS 1Y (TTM)1866.67%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%600%
Revenue 1Y (TTM)68.99%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%130.35%
3.2 Future
QNST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 153.39% yearly.
Based on estimates for the next years, QNST will show a very strong growth in Revenue. The Revenue will grow by 29.61% on average per year.
EPS Next Y784.48%
EPS Next 2Y237.99%
EPS Next 3Y153.39%
EPS Next 5YN/A
Revenue Next Year80.73%
Revenue Next 2Y40.43%
Revenue Next 3Y29.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
QNST is valuated quite expensively with a Price/Earnings ratio of 34.08.
The rest of the industry has a similar Price/Earnings ratio as QNST.
The average S&P500 Price/Earnings ratio is at 29.62. QNST is around the same levels.
QNST is valuated rather expensively with a Price/Forward Earnings ratio of 17.60.
Based on the Price/Forward Earnings ratio, QNST is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, QNST is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.08 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
QNST's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QNST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.5 | ||
| EV/EBITDA | 66.45 |
4.3 Compensation for Growth
QNST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QNST's earnings are expected to grow with 153.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y237.99%
EPS Next 3Y153.39%
5. Dividend
5.1 Amount
No dividends for QNST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.11
-0.94 (-4.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.84%
Inst Owner Change-92.97%
Ins Owners4.21%
Ins Owner Change-9.07%
Market Cap1.14B
Analysts86.15
Price Target31.88 (58.53%)
Short Float %2.78%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.36%
Min EPS beat(2)0.92%
Max EPS beat(2)43.79%
EPS beat(4)3
Avg EPS beat(4)11.4%
Min EPS beat(4)-8.5%
Max EPS beat(4)43.79%
EPS beat(8)7
Avg EPS beat(8)25.58%
EPS beat(12)9
Avg EPS beat(12)22.16%
EPS beat(16)12
Avg EPS beat(16)17.49%
Revenue beat(2)2
Avg Revenue beat(2)20.29%
Min Revenue beat(2)15.57%
Max Revenue beat(2)25.01%
Revenue beat(4)3
Avg Revenue beat(4)10.97%
Min Revenue beat(4)-1%
Max Revenue beat(4)25.01%
Revenue beat(8)5
Avg Revenue beat(8)5.99%
Revenue beat(12)8
Avg Revenue beat(12)4.46%
Revenue beat(16)11
Avg Revenue beat(16)3.38%
PT rev (1m)9.01%
PT rev (3m)38.38%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)11.72%
EPS NY rev (1m)4.66%
EPS NY rev (3m)16.73%
Revenue NQ rev (1m)10.89%
Revenue NQ rev (3m)34.12%
Revenue NY rev (1m)8.62%
Revenue NY rev (3m)11.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.08 | ||
| Fwd PE | 17.6 | ||
| P/S | 1.22 | ||
| P/FCF | 34.5 | ||
| P/OCF | 24.88 | ||
| P/B | 5.06 | ||
| P/tB | 17.17 | ||
| EV/EBITDA | 66.45 |
EPS(TTM)0.59
EY2.93%
EPS(NY)1.14
Fwd EY5.68%
FCF(TTM)0.58
FCFY2.9%
OCF(TTM)0.81
OCFY4.02%
SpS16.45
BVpS3.97
TBVpS1.17
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.96% | ||
| ROE | -5.41% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.36% | ||
| FCFM | 3.54% |
ROA(3y)-10.06%
ROA(5y)-3.98%
ROE(3y)-15.42%
ROE(5y)-6.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.81%
GM growth 5Y-11.04%
F-Score6
Asset Turnover2.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 49.72% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 281.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 5.59 |
F-Score6
WACC9.06%
ROIC/WACCN/A
Cap/Depr(3y)64.15%
Cap/Depr(5y)52.19%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1866.67%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%600%
EPS Next Y784.48%
EPS Next 2Y237.99%
EPS Next 3Y153.39%
EPS Next 5YN/A
Revenue 1Y (TTM)68.99%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%130.35%
Revenue Next Year80.73%
Revenue Next 2Y40.43%
Revenue Next 3Y29.61%
Revenue Next 5YN/A
EBIT growth 1Y66.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year496.11%
EBIT Next 3Y93.78%
EBIT Next 5YN/A
FCF growth 1Y5108.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y274.54%
OCF growth 3Y-38.04%
OCF growth 5Y-20.53%