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Quest Resource Holding Corp (QRHC)
:QRHC
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Quest Resource
(NASDAQ:QRHC)
42Neutral
Quest Resource (QRHC) vs. S&P 500 (SPY)
Market Cap
$53.58M
Dividend YieldN/A
Average Volume (3M)106.45K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth0.05%
EPS Growth-99.92%
CountryUS
Employees224
SectorIndustrials
Sector Strength66
IndustryWaste Management
Share Statistics
EPS (TTM)-0.73
Shares Outstanding20,606,396
10 Day Avg. Volume103,275
30 Day Avg. Volume106,446
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)-3.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside148.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Quest Resource Business Overview & Revenue Model
Company DescriptionQuest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.
How the Company Makes MoneyQuest Resource makes money primarily through its waste management and recycling services. The company charges fees for waste collection, transportation, and disposal, as well as for recycling services that help clients manage their waste streams sustainably. Additionally, Quest Resource offers sustainability consulting services, providing expertise and strategies to help businesses reduce their environmental footprint. Key revenue streams include recurring service contracts with businesses across multiple industries. Partnerships with waste processing facilities and recycling centers also play a significant role in their earnings, enabling them to offer comprehensive and integrated solutions to their clients.
Quest Resource Financial Statement Overview
Summary
Quest Resource's financial health is under strain with negative margins, stagnant revenue growth, increased leverage, and liquidity concerns. These factors indicate the need for strategic improvements to enhance financial stability.Income Statement
Quest Resource's financial results show fluctuations in profitability with a negative net income in recent years. The gross profit margin has been relatively stable but the net profit margin is negative due to losses. Revenue growth has stalled recently, with minimal change from the prior year. The EBIT and EBITDA margins have turned negative, indicating operational challenges.45
Neutral
Balance Sheet
The company's balance sheet indicates a moderate debt-to-equity ratio, though the rising debt levels and declining equity are concerning. The return on equity is negative due to recent losses, which might affect future financial stability. The equity ratio has decreased over time, highlighting increased leverage.50
Neutral
Cash Flow
Quest Resource's cash flow statement reveals negative operating and free cash flows, indicating liquidity constraints. The operating cash flow to net income ratio is negative, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is also negative, highlighting inefficiencies in cash use.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 288.53M | 288.38M | 284.04M | 155.72M | 98.66M |
| Gross Profit | ||||
| 49.99M | 50.06M | 48.86M | 28.82M | 19.05M |
| EBIT | ||||
| -4.46M | 2.82M | 1.41M | 4.62M | 2.16M |
| EBITDA | ||||
| 5.81M | 13.11M | 11.78M | 7.49M | 3.47M |
| Net Income Common Stockholders | ||||
| -15.06M | -7.29M | -6.05M | 1.69M | 1.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 396.00K | 324.01K | 9.56M | 8.43M | 7.52M |
| Total Assets | ||||
| 175.65M | 177.12M | 181.49M | 175.67M | 102.23M |
| Total Debt | ||||
| 79.18M | 67.57M | 71.73M | 63.74M | 15.57M |
| Net Debt | ||||
| 78.79M | 67.24M | 62.17M | 55.31M | 8.06M |
| Total Liabilities | ||||
| 121.49M | 110.84M | 110.35M | 102.04M | 34.19M |
| Stockholders Equity | ||||
| 54.16M | 66.28M | 71.14M | 73.63M | 68.04M |
| Cash Flow | Free Cash Flow | |||
| -10.77M | -3.26M | -4.04M | 1.93M | 2.59M |
| Operating Cash Flow | ||||
| -6.08M | -1.36M | -2.34M | 2.57M | 3.10M |
| Investing Cash Flow | ||||
| -5.97M | -1.90M | -4.33M | -16.93M | -506.07K |
| Financing Cash Flow | ||||
| 12.13M | -5.98M | 7.81M | 15.27M | 1.51M |
Quest Resource Technical Analysis
Negative
2.62
Price Trends
4.40
Negative
5.55
Negative
6.99
Negative
Market Momentum
-0.53
Negative
28.49
Positive
11.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Negative. The current price of 2.62 is below the 20-day moving average (MA) of 3.27, below the 50-day MA of 4.40, and below the 200-day MA of 6.99, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 28.49 is Positive, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QRHC.
Quest Resource Risk Analysis
Quest Resource disclosed 35 risk factors in its most recent earnings report. Quest Resource reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quest Resource Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.07B | 13.60 | 3.76% | 3.13% | 3.60% | -14.67% | |
45 Neutral | $22.88M | ― | -161.00% | ― | -54.59% | -504.44% | |
42 Neutral | $53.58M | ― | -25.01% | ― | 0.05% | -99.92% | |
41 Neutral | $38.37M | ― | 77.71% | ― | -8.18% | -20.81% | |
35 Underperform | $13.34M | ― | -116.08% | ― | -100.00% | 24.94% | |
35 Underperform | $58.20M | ― | -19.57% | ― | -49.19% | -1214.66% |
* Industrials Sector Average
Performance Comparison
QRHC
Quest Resource
2.62
-6.65
-71.74%
AQMS
Aqua Metals
1.76
-10.46
-85.60%
TPIC
TPI Composites
0.87
-1.96
-69.26%
CETY
Clean Energy Technologies
0.50
-1.12
-69.14%
YGMZ
MingZhu Logistics Holdings
0.81
-2.40
-74.77%
Quest Resource Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -31.95% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Quest's success in onboarding new clients, reducing interest expenses through refinancing, and initiating operational improvements. However, these positives were countered by significant challenges, including industrial market weakness, client attrition, temporary costs, and the impact of accounts payable adjustments. The sentiment is a balance between promising growth initiatives and the need to address execution issues and financial adjustments.Highlights
Record Client Onboarding
Quest Resource Holding Corp. added clients at record rates in 2024, with significant onboarding from eight new client wins and expansions with five existing clients, contributing approximately $12 million of fourth quarter revenue.
Debt Refinancing and Interest Savings
Quest successfully refinanced its debt, reducing the blended interest rate margin by approximately 150 basis points, which will save approximately $1 million annually in interest expenses.
Operational Improvements and Cost Reduction
Quest implemented a 15% reduction in workforce and other G&A cost savings, expected to reduce SG&A by $3 million on an annualized basis. Additionally, the company is integrating technology into workflows to improve efficiency.
Pipeline Growth and Sales Process Overhaul
Quest restructured its sales process with a focus on metrics and discipline, resulting in significant pipeline growth and a disciplined approach to drive future sales.
Lowlights
Industrial Market Weakness and Client Attrition
Quest experienced approximately $9 million decrease in revenue due to weak industrial market conditions and client attrition, including the decision to exit the mall and shopping center sector.
Temporary Cost Increases and Execution Challenges
Quest faced temporary onboarding costs, higher cost of services due to the implementation of a new vendor management system, and execution issues leading to inconsistent margin and profit growth.
Accounts Payable Adjustments
Quest made a $1 million non-cash adjustment related to unreconciled accounts payable from 2021 and 2022, affecting gross profit dollars negatively.
Impairment Loss on RWS Business
Quest recognized an impairment loss of $5.5 million related to the sale of client contracts for the mall and shopping center portion of RWS.
Company Guidance
During the Quest Resource Holding Corp. earnings call for the fourth quarter and full year 2024, several key metrics and guidance were provided. The company reported fourth-quarter revenue of $70 million, representing a 1% increase from the previous year, but a 4% decrease sequentially. Gross profit for the quarter was $10.7 million, which marked a 6.7% decrease from the prior year. The company faced challenges with client attrition and weak industrial market conditions, impacting revenues by approximately $44 million annually. However, they anticipate $15 million in net incremental revenue for 2025 from new client wins, despite ongoing market changes. Adjusted EBITDA for the fourth quarter was affected by $1.5 million in non-cash adjustments, but management expects approximately $3.2 million without these adjustments. The company is implementing a series of strategic actions, including a 15% workforce reduction and targeting $3 million in annual SG&A cost savings, aiming to improve operational efficiencies and enhance shareholder value. They refinanced their debt, reducing interest expenses by $1 million annually, with a new maturity extending to 2030. While challenges remain, Quest Resource Holding Corp. is optimistic about top and bottom-line growth in 2025, driven by cost reductions, operational improvements, and continued client onboarding and expansion.Quest Resource Corporate Events
M&A TransactionsBusiness Operations and Strategy
Quest Resource Updates Investor Presentation on Growth Strategy
Positive
Mar 14, 2025
Quest Resource Holding Corporation has released an updated investor presentation, replacing previous versions, to be presented at investor meetings. The company emphasizes its growth strategy and focus on providing value-added services to high-value clients in strategic markets, resulting in a sustainable improvement in profitability. Quest’s transformation includes exiting low-value accounts, expanding through disciplined M&A, and achieving a 20% CAGR in revenue from 2016 to 2024. The company aims to enhance sustainability and compliance for its clients, addressing key challenges in the waste and recycling industry.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Quest Resource Appoints New CEO Amid Financial Report
Neutral
Mar 12, 2025
On March 12, 2025, Quest Resource Holding Corporation announced the retirement of its President and CEO, S. Ray Hatch, effective immediately, with his final employment day being March 28, 2025. Perry W. Moss, previously the Chief Revenue Officer, has been appointed as the new President and CEO. The company also reported its financial results for the fourth quarter and fiscal year 2024, highlighting a slight increase in revenue but a decrease in gross profit and adjusted EBITDA compared to the previous year. Quest made significant strides in client acquisition and operational efficiency, including refinancing debt, securing new clients, and reducing headcount, which are expected to improve long-term performance and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.