QUEST RESOURCE HOLDING CORP (QRHC) Stock Fundamental Analysis
NASDAQ:QRHC - Nasdaq - US74836W2035 - Common Stock - Currency: USD
Taking everything into account, QRHC scores 3 out of 10 in our fundamental rating. QRHC was compared to 83 industry peers in the Commercial Services & Supplies industry. QRHC may be in some trouble as it scores bad on both profitability and health. QRHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year QRHC has reported negative net income.
In the past year QRHC has reported a negative cash flow from operations.
In multiple years QRHC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: QRHC reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -8.58%, QRHC is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
With a Return On Equity value of -27.81%, QRHC is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
QRHC has a Return On Invested Capital of 0.70%. This is in the lower half of the industry: QRHC underperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QRHC is significantly below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.58% | ||
| ROE | -27.81% | ||
| ROIC | 0.7% |
ROA(3y)-5.33%
ROA(5y)-2.85%
ROE(3y)-15.75%
ROE(5y)-8.75%
ROIC(3y)1.95%
ROIC(5y)2.04%
1.3 Margins
QRHC has a Operating Margin of 0.40%. This is in the lower half of the industry: QRHC underperforms 66.27% of its industry peers.
QRHC's Operating Margin has declined in the last couple of years.
QRHC has a Gross Margin of 17.33%. This is in the lower half of the industry: QRHC underperforms 79.52% of its industry peers.
QRHC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.4% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% |
OM growth 3Y-53.64%
OM growth 5Y-7.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y-1.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QRHC is destroying value.
QRHC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for QRHC has been increased compared to 5 years ago.
Compared to 1 year ago, QRHC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that QRHC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.12, QRHC is doing worse than 71.08% of the companies in the same industry.
A Debt/Equity ratio of 1.41 is on the high side and indicates that QRHC has dependencies on debt financing.
The Debt to Equity ratio of QRHC (1.41) is worse than 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.07
WACC10.58%
2.3 Liquidity
QRHC has a Current Ratio of 1.69. This is a normal value and indicates that QRHC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.69, QRHC is doing good in the industry, outperforming 61.45% of the companies in the same industry.
QRHC has a Quick Ratio of 1.69. This is a normal value and indicates that QRHC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of QRHC (1.69) is better than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
QRHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.57%.
QRHC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
The Revenue has been growing by 23.85% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-28.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y22.83%
Revenue growth 5Y23.85%
Sales Q2Q%0.91%
3.2 Future
The Earnings Per Share is expected to grow by 36.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, QRHC will show a quite strong growth in Revenue. The Revenue will grow by 9.23% on average per year.
EPS Next Y146.85%
EPS Next 2Y73.13%
EPS Next 3Y54.03%
EPS Next 5Y36.78%
Revenue Next Year4.11%
Revenue Next 2Y5.56%
Revenue Next 3Y10.62%
Revenue Next 5Y9.23%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for QRHC. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 11.48, the valuation of QRHC can be described as reasonable.
QRHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. QRHC is cheaper than 83.13% of the companies in the same industry.
QRHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRHC is valued a bit cheaper than 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.14 |
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.
QRHC's earnings are expected to grow with 54.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y73.13%
EPS Next 3Y54.03%
5. Dividend
5.1 Amount
QRHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.42
+0.17 (+7.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.94%
Inst Owner Change-1.73%
Ins Owners2.06%
Ins Owner Change0.79%
Market Cap49.88M
Analysts82.22
Price Target6.97 (188.02%)
Short Float %2.44%
Short Ratio4.74
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)0
Avg EPS beat(2)-609.86%
Min EPS beat(2)-1076.76%
Max EPS beat(2)-142.96%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.16%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-6.86%
Revenue beat(4)0
Avg Revenue beat(4)-5.68%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-1.89%
Revenue beat(8)1
Avg Revenue beat(8)-5.31%
Revenue beat(12)3
Avg Revenue beat(12)-3.17%
Revenue beat(16)6
Avg Revenue beat(16)1.17%
PT rev (1m)0%
PT rev (3m)-38.81%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-11.11%
EPS NY rev (1m)985.86%
EPS NY rev (3m)985.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.02%
Revenue NY rev (1m)-6.01%
Revenue NY rev (3m)-6.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.48 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.14 |
EPS(TTM)-0.45
EYN/A
EPS(NY)0.21
Fwd EY8.71%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS14
BVpS2.63
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.58% | ||
| ROE | -27.81% | ||
| ROCE | 0.89% | ||
| ROIC | 0.7% | ||
| ROICexc | 0.7% | ||
| ROICexgc | 2.49% | ||
| OM | 0.4% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% | ||
| FCFM | N/A |
ROA(3y)-5.33%
ROA(5y)-2.85%
ROE(3y)-15.75%
ROE(5y)-8.75%
ROIC(3y)1.95%
ROIC(5y)2.04%
ROICexc(3y)2.01%
ROICexc(5y)2.14%
ROICexgc(3y)14.14%
ROICexgc(5y)21.29%
ROCE(3y)2.46%
ROCE(5y)2.58%
ROICexcg growth 3Y-63.26%
ROICexcg growth 5Y-26.06%
ROICexc growth 3Y-43.24%
ROICexc growth 5Y-1.06%
OM growth 3Y-53.64%
OM growth 5Y-7.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y-1.71%
F-Score3
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 58.12% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 0.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 1.12 |
F-Score3
WACC10.58%
ROIC/WACC0.07
Cap/Depr(3y)31.38%
Cap/Depr(5y)31.5%
Cap/Sales(3y)1.11%
Cap/Sales(5y)0.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y146.85%
EPS Next 2Y73.13%
EPS Next 3Y54.03%
EPS Next 5Y36.78%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y22.83%
Revenue growth 5Y23.85%
Sales Q2Q%0.91%
Revenue Next Year4.11%
Revenue Next 2Y5.56%
Revenue Next 3Y10.62%
Revenue Next 5Y9.23%
EBIT growth 1Y-73.85%
EBIT growth 3Y-43.06%
EBIT growth 5Y14.15%
EBIT Next Year382.95%
EBIT Next 3Y109.46%
EBIT Next 5Y67.86%
FCF growth 1Y-269.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-346.67%
OCF growth 3YN/A
OCF growth 5YN/A