Qualstar (QBAK) AI Stock Analysis

• Market Cap: $13.83M
• Dividend Yield: N/A
• Average Volume (3M): 168.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -30.76%
• EPS Growth: -276.74%
• Country: US
• Employees: 15
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 1,884,033
• 10 Day Avg. Volume: 228
• 30 Day Avg. Volume: 168
• PEG Ratio: 0.09
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.53
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: -20.28
• 1Y Price Target: $8.50
• Price Target Upside: 15.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $7.00 ▼(-5.15%Downside)

Qualstar's overall stock score is influenced mainly by financial and technical challenges. Declining revenue and profitability, coupled with weak technical indicators, weigh heavily on the score. Although the balance sheet is strong and cash flow management has improved, these positive aspects are overshadowed by the company's valuation concerns and lack of earnings data.

Qualstar Business Overview & Revenue Model

Company Description

Qualstar Corporation (QBAK) is a company that operates in the data storage industry, specializing in the design and manufacturing of high-quality data storage solutions. The company's core products include tape libraries, data storage systems, and related services. Qualstar serves a diverse range of sectors including media and entertainment, government, and healthcare, providing reliable and scalable storage solutions for long-term data retention and protection.

How the Company Makes Money

Qualstar makes money primarily through the sale of its data storage products, such as tape libraries and storage systems. These products are sold directly to end-users or through a network of resellers and distributors. The company's revenue model also includes service contracts and maintenance agreements that provide ongoing support and generate recurring income. Additionally, Qualstar may engage in strategic partnerships with technology providers or integrators to extend its market reach and enhance its product offerings. The company's earnings are influenced by factors such as technological advancements, market demand for data storage solutions, and its ability to maintain competitive pricing and high-quality standards.

Qualstar Financial Statement Overview

Summary

Qualstar faces challenges with declining revenue and profitability, as indicated by a net loss and negative profit margins. However, it maintains a solid balance sheet with low debt levels and shows improvement in free cash flow, signaling positive cash management.

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

Qualstar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 7.38 is below the 20-day moving average (MA) of 7.68, above the 50-day MA of 7.37, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 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	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
FLUX	58 Neutral	$31.45M	―	-1582.76%	―	-1.45%	-15.76%
POLA	48 Neutral	$4.92M	―	-41.53%	―	8.08%	59.60%
QBAK	48 Neutral	$13.83M	―	-3.86%	―	-30.76%	-276.74%
OESX	41 Neutral	$19.01M	―	-68.57%	―	-11.99%	0.06%
STI	26 Underperform	$11.63M	0.75	-454.29%	―	―	92.05%