Qualstar (QBAK) AI Stock Analysis

• Market Cap: $13.85M
• Dividend Yield: N/A
• Average Volume (3M): 584.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -30.76%
• EPS Growth: -276.74%
• Country: US
• Employees: 15
• Sector: Industrials
• Sector Strength: 92
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 1,884,033
• 10 Day Avg. Volume: 1,410
• 30 Day Avg. Volume: 584
• PEG Ratio: -1.73
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• 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 Business Overview & Revenue Model

Company Description

Qualstar 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 Money

Qualstar 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.20M	10.62M	9.85M	9.16M	8.10M	13.44M
	Gross Profit
3.12M	3.28M	2.66M	2.72M	1.81M	3.52M
	EBIT
-19.00K	140.00K	92.00K	-90.00K	-1.26M	-70.00K
	EBITDA
18.00K	177.00K	135.00K	466.00K	-964.00K	-70.00K
	Net Income Common Stockholders
54.00K	191.00K	55.00K	430.00K	-1.26M	-7.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.24M	2.42M	2.80M	4.20M	4.26M	3.86M
	Total Assets
33.20M	8.05M	8.10M	8.69M	8.42M	10.04M
	Total Debt
0.00	95.00K	260.00K	321.00K	710.00K	705.00K
	Net Debt
-1.23M	-2.18M	-2.51M	-3.87M	-3.55M	-3.16M
	Total Liabilities
2.80M	3.04M	2.75M	2.83M	2.81M	3.29M
	Stockholders Equity
30.40M	5.01M	5.34M	5.86M	5.62M	6.74M
Cash Flow		Free Cash Flow
371.00K	131.00K	-832.00K	-124.00K	36.00K	-201.00K
	Operating Cash Flow
378.00K	138.00K	-831.00K	-68.00K	60.00K	-116.00K
	Investing Cash Flow
44.00K	-108.00K	-26.00K	-56.00K	-24.00K	-85.00K
	Financing Cash Flow
-396.00K	-522.00K	-571.00K	62.00K	258.00K	-717.00K

Qualstar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
QBAK	57 Neutral	$13.85M	―	-3.86%	―	-30.76%	-276.74%
OESX	54 Neutral	$22.75M	―	-41.45%	―	-0.63%	60.93%
FLUX	51 Neutral	$27.75M	―	-1582.76%	―	-1.45%	-15.76%
POLA	43 Neutral	$4.57M	―	-41.53%	―	8.08%	59.60%
STI	26 Underperform	$9.26M	0.54	-454.29%	―	―	92.05%