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Qualstar Corporation (QBAK)
:QBAK
US Market

Qualstar (QBAK) AI Stock Analysis

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Qualstar

(OTC:QBAK)

Rating:63Neutral
Price Target:
$8.00
▲(0.00%Upside)
Qualstar's stock score is primarily supported by strong technical indicators reflecting bullish momentum, despite weak valuation metrics and financial performance challenges. The robust balance sheet and improved cash management provide some stability.

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

Qualstar Business Overview & Revenue Model

Company DescriptionQualstar 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 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's financial performance is challenged by declining revenue and profitability, with a net loss in 2024. However, it has a strong balance sheet with low debt and improved free cash flow, indicating positive cash management.
Income Statement
40
Negative
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
65
Positive
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
55
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.04M10.62M9.85M9.16M8.10M
Gross Profit
2.46M3.28M2.66M2.72M1.81M
EBIT
-470.00K140.00K92.00K-90.00K-1.26M
EBITDA
-444.00K177.00K135.00K466.00K-964.00K
Net Income Common Stockholders
-471.00K191.00K55.00K430.00K-1.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.44M2.42M2.80M4.20M4.26M
Total Assets
6.72M8.05M8.10M8.69M8.42M
Total Debt
382.00K95.00K260.00K321.00K710.00K
Net Debt
-2.02M-2.18M-2.51M-3.87M-3.55M
Total Liabilities
2.15M3.04M2.75M2.83M2.81M
Stockholders Equity
4.58M5.01M5.34M5.86M5.62M
Cash FlowFree Cash Flow
222.00K131.00K-832.00K-124.00K36.00K
Operating Cash Flow
222.00K138.00K-831.00K-68.00K60.00K
Investing Cash Flow
49.00K-108.00K-26.00K-56.00K-24.00K
Financing Cash Flow
-143.00K-522.00K-571.00K62.00K258.00K

Qualstar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.00
Price Trends
50DMA
6.40
Positive
100DMA
6.15
Positive
200DMA
5.09
Positive
Market Momentum
MACD
0.52
Negative
RSI
65.04
Neutral
STOCH
90.67
Negative
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 8 is above the 20-day moving average (MA) of 7.41, above the 50-day MA of 6.40, and above the 200-day MA of 5.09, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 90.67 is Negative, 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
63
Neutral
$15.07M-3.86%-30.76%-276.74%
54
Neutral
$19.23M-41.45%-0.63%60.93%
48
Neutral
$26.07M-1582.76%-1.45%-15.76%
43
Neutral
$4.34M-41.53%8.08%59.60%
STSTI
26
Underperform
$10.43M0.55-454.29%92.05%
$2.32M-236.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QBAK
Qualstar
8.00
1.90
31.15%
OESX
Orion Energy Systems
0.60
-0.46
-43.40%
POLA
Polar Power
1.72
-1.02
-37.23%
FLUX
Flux Power Holdings
1.58
-1.47
-48.20%
STI
Solidion Technology
3.50
-87.00
-96.13%
NXUR
Nxu
0.90
-7.10
-88.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.