One-glance verdict
Undervalued
$11.74 our estimate vs market $1.09
Wall Street consensus: $3.25 (-72.3% lower than our fair-value estimate)
91% below our estimate, below the bear case
Fundamentals snapshot
Quest Resource Holding Corporation
QRHC · NCM · Industrials · Waste Management
Current price
$1.09
52-week range
$0.81 - $2.41
Market cap
$22.99M
Balance sheet
Distressed
-0.04x Concerning
Net debt $61.15M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -50.3% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 2.7% over 3 years.
What this company does
Quest Resource Holding Corporation
Quest Resource Holding Corporation helps big companies like grocery stores and auto shops manage and recycle their waste, like cardboard or old oil. They make money by charging for these disposal and recycling services, which is important because it shows how efficiently they can handle their customers' trash.
How the company got here
Quest Resource Holding Corporation, originally named Infinity Resources Holdings Corp., adopted its current name in October 2013. The company has evolved to focus on providing comprehensive waste management solutions. Its journey reflects a strategic shift towards offering services that help businesses manage and repurpose various waste materials. Headquartered in The Colony, Texas, Quest has established itself as a player in the industrial services sector.
What it actually does
Quest Resource Holding Corporation offers a wide array of services aimed at managing, recycling, and disposing of different types of waste and recyclables for businesses. Think of them as a specialized service that helps companies deal with everything from cardboard and plastic to used motor oil and electronic devices. They help businesses comply with environmental regulations and find more sustainable ways to handle their waste streams, which can include providing equipment like compactors and dumpsters.
Waste streams and recyclables management
This is the core of Quest's business, where they manage the disposal and recycling of a vast range of materials. This includes common items like cardboard, paper, and plastics, as well as more specialized waste such as used motor oil, scrap tires, and electronic devices. They serve a diverse client base, including big-box retailers, grocery stores, automotive businesses, manufacturing facilities, and construction sites. The goal is to provide efficient and environmentally sound solutions for each specific type of waste generated by these industries.
Ancillary services and equipment
Beyond just managing waste streams, Quest also provides related services and equipment to support their clients' needs. This can include offering products like antifreeze and windshield washer fluid, which are often byproducts or related materials in the automotive and transportation sectors they serve. Additionally, they may supply essential equipment such as dumpsters and compacting machinery, helping businesses manage their waste on-site more effectively before it's collected for recycling or disposal.
What management is betting on now
Quest's strategic focus is on expanding its reach within key industries that generate significant waste, such as automotive, retail, and manufacturing. They aim to deepen relationships with existing clients by offering more comprehensive waste management solutions and attracting new customers through their direct sales force and partnerships. The company is likely prioritizing efficiency and sustainability in its operations, seeking to be a preferred partner for businesses looking to manage their environmental footprint responsibly.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-583.03K
FY2024 Q4
$-5.18M
FY2025 Q1
$-1.23M
FY2025 Q2
$3.89M
FY2025 Q3
$5.63M
FY2025 Q4
$1.01M
FY2026 Q1
$110.00K
FY2026 Q2
$4.46M
Revenue
$64.07M
Net income
$-12.22M
Diluted EPS
-0.57
Operating cash flow
$4.46M
Free cash flow
$4.46M
Fetching…
Sources
Revenue
$61.73M
Net income
$-2.32M
Diluted EPS
-0.11
Operating cash flow
$190.00K
Free cash flow
$110.00K
Fetching…
Sources
Revenue
$58.91M
Net income
$-1.66M
Diluted EPS
-0.08
Operating cash flow
$1.05M
Free cash flow
$1.01M
Fetching…
Sources
Revenue
$63.34M
Net income
$-1.35M
Diluted EPS
-0.06
Operating cash flow
$5.66M
Free cash flow
$5.63M
Fetching…
Sources
Revenue
$59.54M
Net income
$-1.97M
Diluted EPS
-0.09
Operating cash flow
$3.90M
Free cash flow
$3.89M
Fetching…
Sources
Revenue
$68.43M
Net income
$-10.41M
Diluted EPS
-0.50
Operating cash flow
$-1.06M
Free cash flow
$-1.23M
Fetching…
Sources
Revenue
$69.97M
Net income
$-9.51M
Diluted EPS
-0.47
Operating cash flow
$-4.77M
Free cash flow
$-5.18M
Fetching…
Sources
Revenue
$72.77M
Net income
$-3.39M
Diluted EPS
-0.16
Operating cash flow
$-474.74K
Free cash flow
$-583.03K
Fetching…
Sources
Is it cheap or expensive?
Fair value $11.74 vs current price $1.09
Wall Street consensus is the average analyst price target: $3.25 (-72.3% lower than our fair-value estimate).
Our most-likely fair value is $11.74 a share — about 977.2% above today's price of $1.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $61.2M. Interest coverage -0.0x.
Net debt
$61.15M
Interest coverage
-0.04x
Quest Resource Holding Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
QRHC
BASELINE
Quest Resource Holding Corporation
Total debt $62.18M Interest coverage -0.04x This is the baseline the peer rows are being compared against.
Total debt $3.36B Interest coverage 3.99x This peer still has a real interest-payment cushion, while QRHC does not.
What you should know
The case for and against QRHC
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -50.3% last year — the company lost money on shareholders' equity.
-
Net debt grew 2.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
31.14x
P/B
0.86x
P/S
0.09x
EV/EBITDA
10.79x
PEG ratio
0.71x
Profitability
How much profit each dollar creates
Gross margin
16.4%
Operating margin
1.8%
Net margin
-7.1%
ROE
-50.3%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
2.32x
Current ratio
1.18x
Quick ratio
1.14x
Total debt
$62.18M
Total cash
$1.02M
Growth
How the business has been compounding
Revenue TTM
$248.05M
Revenue 5Y CAGR
12.6%
EPS TTM
-0.81
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$11.36M
Free CF TTM
$9.31M
FCF margin
3.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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