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Qualstar (QBAK)
OTHER OTC:QBAK
US Market

Qualstar (QBAK) AI Stock Analysis

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Qualstar

(OTC:QBAK)

Rating:57Neutral
Price Target:
$7.00
▼(-3.45%Downside)
Qualstar's overall stock score reflects its strong technical momentum but is constrained by weak financial performance and poor valuation metrics. The company's declining revenue and profitability weigh heavily, despite a solid balance sheet and improved cash management. Technical indicators suggest positive price momentum, but the high RSI points to potential overbought conditions.

Qualstar (QBAK) vs. SPDR S&P 500 ETF (SPY)

Qualstar Business Overview & Revenue Model

Company DescriptionQualstar Corporation (QBAK) is a leading provider of data storage solutions, specializing in the design, development, and manufacturing of high-quality tape libraries and data storage systems. Catering to a diverse range of industries, including media and entertainment, healthcare, and financial services, Qualstar's products are designed to meet the data backup, archiving, and disaster recovery needs of organizations worldwide.
How the Company Makes MoneyQualstar makes money by selling its data storage solutions, primarily through the sale of its tape libraries and related products. These products are distributed through a network of resellers, distributors, and original equipment manufacturers (OEMs). The company generates revenue from both the sale of new equipment and the provision of maintenance and support services. Additionally, Qualstar capitalizes on its expertise by offering custom engineering services, which can involve designing bespoke storage solutions tailored to specific customer requirements. Key partnerships with industry-leading technology companies can enhance its market reach and contribute to its revenue growth.

Qualstar Financial Statement Overview

Summary
Qualstar is showing positive financial momentum with notable improvements in revenue growth, profitability, and cash flow generation. The company maintains a strong balance sheet with low leverage, which positions it well for future growth. However, attention is needed on enhancing operational efficiencies and ensuring sustainable investment strategies to support long-term success.
Income Statement
75
Positive
Qualstar has shown strong revenue growth with a 7.8% increase from 2022 to 2023, recovering from a previous decline. The net profit margin improved significantly to 1.8% in 2023 from 0.6% in 2022, signaling better cost management and profitability. Gross profit margin also improved, rising to 30.9% in 2023 from 27.0% in 2022. However, EBIT and EBITDA margins remain relatively low, indicating room for operational efficiency improvements.
Balance Sheet
80
Positive
The company exhibits a solid balance sheet with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The equity ratio is strong at 62.3%, reflecting a stable capital structure. Return on equity increased to 3.8% in 2023 from 1.0% in 2022, showing improved profitability for shareholders. However, the company could benefit from further strengthening its asset base.
Cash Flow
70
Positive
Qualstar's free cash flow turned positive in 2023, improving significantly from a negative position in 2022. The operating cash flow to net income ratio improved, indicating better cash generation relative to net income. However, the free cash flow to net income ratio is still not optimal, and the company experienced negative investing cash flow, highlighting potential challenges in sustaining long-term investments.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
11.20M10.62M9.85M9.16M8.10M13.44M
Gross Profit
3.12M3.28M2.66M2.72M1.81M3.52M
EBIT
-19.00K140.00K92.00K-90.00K-1.26M-70.00K
EBITDA
18.00K177.00K135.00K466.00K-964.00K-70.00K
Net Income Common Stockholders
54.00K191.00K55.00K430.00K-1.26M-7.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.24M2.42M2.80M4.20M4.26M3.86M
Total Assets
33.20M8.05M8.10M8.69M8.42M10.04M
Total Debt
0.0095.00K260.00K321.00K710.00K705.00K
Net Debt
-1.23M-2.18M-2.51M-3.87M-3.55M-3.16M
Total Liabilities
2.80M3.04M2.75M2.83M2.81M3.29M
Stockholders Equity
30.40M5.01M5.34M5.86M5.62M6.74M
Cash FlowFree Cash Flow
371.00K131.00K-832.00K-124.00K36.00K-201.00K
Operating Cash Flow
378.00K138.00K-831.00K-68.00K60.00K-116.00K
Investing Cash Flow
44.00K-108.00K-26.00K-56.00K-24.00K-85.00K
Financing Cash Flow
-396.00K-522.00K-571.00K62.00K258.00K-717.00K

Qualstar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.25
Price Trends
50DMA
6.10
Positive
100DMA
5.81
Positive
200DMA
4.94
Positive
Market Momentum
MACD
0.42
Negative
RSI
65.82
Neutral
STOCH
76.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QBAK, the sentiment is Positive. The current price of 7.25 is above the 20-day moving average (MA) of 6.39, above the 50-day MA of 6.10, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 65.82 is Neutral, neither overbought nor oversold. The STOCH value of 76.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QBAK.

Qualstar Risk Analysis

Qualstar disclosed 20 risk factors in its most recent earnings report. Qualstar 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

Qualstar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$4.41B12.065.22%249.80%4.09%-12.16%
57
Neutral
$13.85M-3.86%-30.76%-276.74%
54
Neutral
$22.75M-41.45%-0.63%60.93%
51
Neutral
$27.75M-1582.76%-1.45%-15.76%
43
Neutral
$4.57M-41.53%8.08%59.60%
STSTI
26
Underperform
$9.26M0.54-454.29%92.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QBAK
Qualstar
7.35
1.49
25.43%
OESX
Orion Energy Systems
0.69
-0.28
-28.87%
POLA
Polar Power
1.82
-1.33
-42.22%
FLUX
Flux Power Holdings
1.60
-1.40
-46.67%
STI
Solidion Technology
3.41
-104.09
-96.83%
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.