QUINSTREET INC (QNST)

US74874Q1004 - Common Stock

23.55  +0.19 (+0.81%)

After market: 23.55 0 (0%)

Fundamental Rating

4

Overall QNST gets a fundamental rating of 4 out of 10. We evaluated QNST against 71 industry peers in the Interactive Media & Services industry. The financial health of QNST is average, but there are quite some concerns on its profitability. QNST shows excellent growth, but is valued quite expensive already.



2

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.
Each year in the past 5 years QNST had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -5.52%, QNST is in line with its industry, outperforming 50.00% of the companies in the same industry.
QNST has a Return On Equity (-10.07%) which is in line with its industry peers.
Industry RankSector Rank
ROA -5.52%
ROE -10.07%
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

Looking at the Gross Margin, with a value of 8.72%, QNST is doing worse than 93.94% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 8.72%
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%

6

2. Health

2.1 Basic Checks

QNST does not have a ROIC to compare to the WACC, probably because it is not profitable.
QNST has more shares outstanding than it did 1 year ago.
QNST has more shares outstanding than it did 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

An Altman-Z score of 5.83 indicates that QNST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.83, QNST is in the better half of the industry, outperforming 78.79% 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 5.83
ROIC/WACCN/A
WACC9.24%

2.3 Liquidity

QNST has a Current Ratio of 1.31. This is a normal value and indicates that QNST is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of QNST (1.31) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.31 indicates that QNST should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, QNST is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.31

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 600.00% over the past 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 very strong growth in Revenue. The Revenue has grown by 37.05%.
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)600%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%833.33%
Revenue 1Y (TTM)37.05%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%125.32%

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 155.75% on average per year.
Based on estimates for the next years, QNST will show a very strong growth in Revenue. The Revenue will grow by 26.33% on average per year.
EPS Next Y745.14%
EPS Next 2Y235.62%
EPS Next 3Y155.75%
EPS Next 5YN/A
Revenue Next Year66.39%
Revenue Next 2Y34.68%
Revenue Next 3Y26.33%
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.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 67.29, QNST can be considered very expensive at the moment.
QNST's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.48, QNST is valued quite expensively.
Based on the Price/Forward Earnings ratio of 20.91, the valuation of QNST can be described as rather expensive.
QNST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QNST is cheaper than 62.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. QNST is around the same levels.
Industry RankSector Rank
PE 67.29
Fwd PE 20.91

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QNST is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 228.58

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 155.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y235.62%
EPS Next 3Y155.75%

0

5. Dividend

5.1 Amount

No dividends for QNST!.
Industry RankSector Rank
Dividend Yield N/A

QUINSTREET INC

NASDAQ:QNST (1/3/2025, 8:00:01 PM)

After market: 23.55 0 (0%)

23.55

+0.19 (+0.81%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners91.96%
Inst Owner Change-0.03%
Ins Owners4.6%
Ins Owner Change7.44%
Market Cap1.32B
Analysts86.15
Price Target29.24 (24.16%)
Short Float %3.26%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield N/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)26.6%
Min EPS beat(2)9.41%
Max EPS beat(2)43.79%
EPS beat(4)3
Avg EPS beat(4)15.89%
Min EPS beat(4)-8.5%
Max EPS beat(4)43.79%
EPS beat(8)7
Avg EPS beat(8)25.71%
EPS beat(12)8
Avg EPS beat(12)19.88%
EPS beat(16)12
Avg EPS beat(16)20.55%
Revenue beat(2)2
Avg Revenue beat(2)14.66%
Min Revenue beat(2)4.32%
Max Revenue beat(2)25.01%
Revenue beat(4)3
Avg Revenue beat(4)8.02%
Min Revenue beat(4)-1%
Max Revenue beat(4)25.01%
Revenue beat(8)5
Avg Revenue beat(8)4.78%
Revenue beat(12)7
Avg Revenue beat(12)2.52%
Revenue beat(16)11
Avg Revenue beat(16)3.05%
PT rev (1m)0%
PT rev (3m)26.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)138.6%
EPS NY rev (1m)0%
EPS NY rev (3m)45.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)41.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)19.98%
Valuation
Industry RankSector Rank
PE 67.29
Fwd PE 20.91
P/S 1.72
P/FCF N/A
P/OCF 400.76
P/B 6.03
P/tB 22.37
EV/EBITDA 228.58
EPS(TTM)0.35
EY1.49%
EPS(NY)1.13
Fwd EY4.78%
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)0.06
OCFY0.25%
SpS13.67
BVpS3.91
TBVpS1.05
PEG (NY)0.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.52%
ROE -10.07%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 8.72%
FCFM 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
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 Turnover1.92
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 56.81%
Cap/Sales 1.85%
Interest Coverage N/A
Cash Conversion 58.13%
Profit Quality N/A
Current Ratio 1.31
Quick Ratio 1.31
Altman-Z 5.83
F-Score6
WACC9.24%
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)600%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%833.33%
EPS Next Y745.14%
EPS Next 2Y235.62%
EPS Next 3Y155.75%
EPS Next 5YN/A
Revenue 1Y (TTM)37.05%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%125.32%
Revenue Next Year66.39%
Revenue Next 2Y34.68%
Revenue Next 3Y26.33%
Revenue Next 5YN/A
EBIT growth 1Y24.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year496.11%
EBIT Next 3Y93.78%
EBIT Next 5YN/A
FCF growth 1Y-156.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.43%
OCF growth 3Y-38.04%
OCF growth 5Y-20.53%