Qualstar (QBAK) AI Stock Analysis

• Market Cap: $15.07M
• Dividend Yield: N/A
• Average Volume (3M): 1.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• 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: 2,124
• 30 Day Avg. Volume: 1,288
• PEG Ratio: 0.10
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 67.89
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: -22.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• 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 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 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

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
	EBIT
-470.00K	140.00K	92.00K	-90.00K	-1.26M
	EBITDA
-444.00K	177.00K	135.00K	466.00K	-964.00K
	Net Income Common Stockholders
-471.00K	191.00K	55.00K	430.00K	-1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.44M	2.42M	2.80M	4.20M	4.26M
	Total Assets
6.72M	8.05M	8.10M	8.69M	8.42M
	Total Debt
382.00K	95.00K	260.00K	321.00K	710.00K
	Net Debt
-2.02M	-2.18M	-2.51M	-3.87M	-3.55M
	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: 8.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
QBAK	63 Neutral	$15.07M	―	-3.86%	―	-30.76%	-276.74%
OESX	54 Neutral	$19.23M	―	-41.45%	―	-0.63%	60.93%
FLUX	48 Neutral	$26.07M	―	-1582.76%	―	-1.45%	-15.76%
POLA	43 Neutral	$4.34M	―	-41.53%	―	8.08%	59.60%
STI	26 Underperform	$10.43M	0.55	-454.29%	―	―	92.05%
NXUR		$2.32M	―	-236.01%	―	―	―