Qualstar (QBAK) AI Stock Analysis

• Market Cap: $27.18M
• Dividend Yield: N/A
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.32
• Revenue Growth: -24.16%
• EPS Growth: N/A
• Country: US
• Employees: 15
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 1,884,033
• 10 Day Avg. Volume: 780
• 30 Day Avg. Volume: 2,586
• PEG Ratio: 0.03
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 26.23
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 53.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $16.00 ▼(-5.33% Downside)

The overall stock score of 56 reflects the company's solid balance sheet and positive cash flow management, which are offset by declining revenue and profitability. Technical indicators show a stable trend, but the high P/E ratio suggests potential overvaluation.

Positive Factors

Strategic Partnerships

The collaboration with CMS Distribution enhances Qualstar's market reach and product integration, supporting scalable growth and revenue diversification.

Industry Tailwinds

The increasing demand for secure, cost-efficient data storage solutions positions Qualstar to benefit from industry growth, supporting long-term revenue potential.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility, allowing Qualstar to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in market demand or competition, potentially impacting long-term growth and profitability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies or pricing pressures, which can hinder sustainable profitability and shareholder value.

Decreasing Assets

A decrease in assets limits Qualstar's ability to invest in growth initiatives or buffer against financial downturns, affecting long-term strategic options.

Qualstar Business Overview & Revenue Model

Company Description

Qualstar Corporation engages in power solutions and data storage systems businesses worldwide. The company operates through two segments, Power Solutions and Data Storage Systems. It provides data storage systems under the Qualstar brand and power solutions under the N2Power brand. The company designs, manufactures, and sells switching power supplies that are used to convert AC line voltage to DC voltages; or DC voltages to other DC voltages for use in various electronic equipment, such as telecommunications equipment, machine tools, routers, switches, wireless systems, and gaming devices. It also supports and sells data storage devices used to store, retrieve, and manage electronic data primarily in network computing environments. The company serves original equipment manufacturers, information technology departments, and lower and middle market companies through distributor and reseller network, distributors, and independent outside sales representatives. Qualstar Corporation was founded in 1984 and is based in Camarillo, California.

How the Company Makes Money

Qualstar generates revenue primarily through the sale of its data storage and power management products. The company earns money by selling hardware, such as tape libraries and power supplies, to businesses and organizations that require reliable data backup and efficient energy solutions. Additionally, Qualstar may offer software solutions and services that complement their hardware products, further enhancing their revenue streams. The company also benefits from long-term partnerships with distributors and resellers, which help to expand its market reach and drive sales. Maintenance contracts and support services for their products provide an additional source of recurring revenue, contributing to the overall financial stability of the company.

Qualstar Financial Statement Overview

Summary

Qualstar faces challenges with declining revenue and profitability but maintains a solid balance sheet with low debt levels. The improvement in free cash flow signals a positive cash management trend, though operating performance needs enhancement to sustain long-term growth.

Income Statement

Qualstar's income statement shows declining revenue, with a significant drop from $10.6M in 2023 to $8.0M in 2024. The gross profit margin decreased from 30.9% to 30.5%. The company also experienced a net loss in 2024, with a negative net profit margin of -5.9%, compared to a positive margin of 1.8% in 2023. EBIT and EBITDA margins are negative, indicating operating challenges.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 68.0% in 2024, slightly lower than 2023's 62.3%. The debt-to-equity ratio remains low at 0.08, highlighting low leverage. However, total assets and stockholders' equity have decreased, which could impact future financial flexibility.

Cash Flow

Free cash flow improved in 2024 to $222,000 from $131,000 in 2023, showcasing better cash management. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to reported losses. Yet, cash flow from operations remains modest compared to the company's revenue scale.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.48M	8.04M	10.62M	9.85M	9.16M	8.10M
Gross Profit	2.33M	2.46M	3.28M	2.66M	2.72M	1.81M
EBITDA	169.00K	-444.00K	177.00K	135.00K	466.00K	-964.00K
Net Income	343.00K	-471.00K	191.00K	55.00K	430.00K	-1.26M
Balance Sheet
Total Assets	6.52M	6.72M	8.05M	8.10M	8.69M	8.42M
Cash, Cash Equivalents and Short-Term Investments	2.64M	2.44M	2.42M	2.80M	4.20M	4.26M
Total Debt	316.00K	382.00K	95.00K	260.00K	321.00K	710.00K
Total Liabilities	1.68M	2.15M	3.04M	2.75M	2.83M	2.81M
Stockholders Equity	4.84M	4.58M	5.01M	5.34M	5.86M	5.62M
Cash Flow
Free Cash Flow	327.00K	222.00K	131.00K	-832.00K	-124.00K	36.00K
Operating Cash Flow	327.00K	222.00K	138.00K	-831.00K	-68.00K	60.00K
Investing Cash Flow	-202.00K	49.00K	-108.00K	-26.00K	-56.00K	-24.00K
Financing Cash Flow	-361.00K	-143.00K	-522.00K	-571.00K	62.00K	258.00K

Qualstar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.90
• 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 16.9 is above the 20-day moving average (MA) of 15.49, above the 50-day MA of 15.60, and above the 200-day MA of 9.47, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OESX	61 Neutral	$31.75M	-3.20	-45.94%	―	-12.77%	23.37%
QBAK	56 Neutral	$27.18M	59.22	7.22%	―	-24.16%	―
PPSI	48 Neutral	$41.16M	―	―	―	―	―
POLA	41 Neutral	$9.29M	-2.03	-119.92%	―	-44.32%	-49.47%
IPWR	38 Underperform	$28.94M	―	-74.44%	―	-69.65%	11.41%