QUINSTREET INC (QNST)
US74874Q1004 - Common Stock
Taking everything into account, QNST scores 4 out of 10 in our fundamental rating. QNST was compared to 72 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year QNST was profitable.
QNST had a positive operating cash flow in the past year.
In multiple years QNST reported negative net income over the last 5 years.
Each year in the past 5 years QNST had a positive operating cash flow.
1.2 Ratios
QNST has a Return On Assets (-8.50%) which is comparable to the rest of the industry.
QNST has a Return On Equity (-14.45%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | -14.45% | ||
| 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
With a Gross Margin value of 7.54%, QNST is not doing good in the industry: 91.55% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of QNST has declined.
The Profit Margin and Operating Margin are not available for QNST so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 7.54% |
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
Compared to 5 years ago, QNST has more shares outstanding
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 5.48. This indicates that QNST is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.48, QNST is doing good in the industry, outperforming 78.87% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.48 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.34 indicates that QNST should not have too much problems paying its short term obligations.
QNST has a worse Current ratio (1.34) than 70.42% of its industry peers.
QNST has a Quick Ratio of 1.34. 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 (1.34) is worse than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for QNST have decreased strongly by -23.08% in the last year.
QNST shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.62% yearly.
Looking at the last year, QNST shows a small growth in Revenue. The Revenue has grown by 5.66% in the last year.
The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)-23.08%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%1200%
Revenue 1Y (TTM)5.66%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%52.19%
3.2 Future
Based on estimates for the next years, QNST will show a very strong growth in Earnings Per Share. The EPS will grow by 127.21% on average per year.
The Revenue is expected to grow by 18.96% on average over the next years. This is quite good.
EPS Next Y481.4%
EPS Next 2Y192.71%
EPS Next 3Y127.21%
EPS Next 5YN/A
Revenue Next Year38.68%
Revenue Next 2Y23.2%
Revenue Next 3Y18.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 202.00, which means the current valuation is very expensive for QNST.
QNST's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.20, QNST is valued quite expensively.
The Price/Forward Earnings ratio is 34.74, which means the current valuation is very expensive for QNST.
The rest of the industry has a similar Price/Forward Earnings ratio as QNST.
QNST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 202 | ||
| Fwd PE | 34.74 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QNST's earnings are expected to grow with 127.21% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y192.71%
EPS Next 3Y127.21%
5. Dividend
5.1 Amount
No dividends for QNST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
QUINSTREET INC
NASDAQ:QNST (11/4/2024, 8:00:00 PM)
After market: 26.5199 +6.32 (+31.29%)20.2
+0.29 (+1.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 202 | ||
| Fwd PE | 34.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.5% | ||
| ROE | -14.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 7.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-23.08%
EPS 3Y-46.69%
EPS 5Y
EPS Q2Q%
EPS Next Y481.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.66%
Revenue growth 3Y1.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y