Qualstar (QBAK) AI Stock Analysis

• Market Cap: $14.51M
• Dividend Yield: N/A
• Average Volume (3M): 559.00
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.13
• Revenue Growth: -42.14%
• EPS Growth: 1060.19%
• Country: US
• Employees: 15
• Sector: Industrials
• Sector Strength: 75
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 1,884,033
• 10 Day Avg. Volume: 1,667
• 30 Day Avg. Volume: 559
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: -14.56
• 1Y Price Target: $8.00
• Price Target Upside: 6.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $8.00 ▲(6.67% Upside)

Qualstar's overall stock score is primarily influenced by its financial performance, which shows declining revenue and profitability but a strong balance sheet with low debt. Technical analysis indicates mixed signals with short-term bullish momentum but potential caution due to RSI levels. Valuation is a concern due to the negative P/E ratio and lack of dividend yield.

Qualstar Business Overview & Revenue Model

Company Description

Qualstar Corporation (QBAK) is a technology company specializing in data storage solutions, primarily focusing on tape storage systems and related products. Operating in the data management and storage sector, Qualstar provides innovative solutions that cater to the needs of various industries, including enterprise, government, and healthcare. The company's core products include automated tape libraries, tape drives, and power management products, which are designed to enhance data security, backup, and archiving capabilities for its clients.

How the Company Makes Money

Qualstar generates revenue through the sale of its hardware products, which include automated tape libraries and tape drives. The company also earns income from the sale of related software and services, such as installation, maintenance, and support. Additionally, Qualstar may engage in partnerships with other technology firms to integrate its products into broader systems, thereby expanding its market reach and sales opportunities. Key revenue streams include direct sales to end users, reseller partnerships, and potential subscription services for ongoing support and software updates.

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: 7.50
• 50DMA: Negative
• 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 7.5 is above the 20-day moving average (MA) of 7.31, below the 50-day MA of 7.56, and above the 200-day MA of 5.88, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 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	$10.80B	16.70	6.58%	2.07%	2.48%	-16.85%
OESX	56 Neutral	$21.66M	―	-62.16%	―	-14.52%	-4.41%
QBAK	53 Neutral	$14.51M	31.38	-3.86%	―	-42.14%	1060.19%
POLA	47 Neutral	$4.95M	―	-49.34%	―	0.13%	45.00%
FLUX	45 Neutral	$31.99M	―	-1582.76%	―	-1.45%	-15.76%
STI	26 Underperform	$8.64M	0.49	-454.29%	―	―	―