Q.E.P. Co. (QEPC) AI Stock Analysis

• Market Cap: $145.34M
• Dividend Yield: 0.51%
• Average Volume (3M): 1.45K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.63
• Revenue Growth: -45.13%
• EPS Growth: 702.21%
• Country: US
• Employees: 371
• Sector: Industrials
• Sector Strength: 64
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 4.35
• Shares Outstanding: 3,726,781
• 10 Day Avg. Volume: 1,204
• 30 Day Avg. Volume: 1,450
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.90
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Q.E.P. Co. receives a moderate score driven by strong financial stability and a favorable valuation. The technical analysis indicates upward momentum, although caution is advised due to the high RSI. The company's low profitability and declining revenues restrain the overall potential.

Q.E.P. Co. Business Overview & Revenue Model

Company Description

Q.E.P. Co., Inc. (QEPC) is a leading manufacturer and distributor of flooring tools and accessories for the professional installation and home improvement markets. The company operates primarily in the sectors of construction and home improvement, offering a wide range of products that include tile cutters, saws, adhesives, grout, underlayment, and other flooring installation tools. Headquartered in Boca Raton, Florida, Q.E.P. serves both domestic and international markets, supporting a robust network of retailers, distributors, and professional installers.

How the Company Makes Money

Q.E.P. Co. generates revenue primarily through the manufacturing and sale of its comprehensive range of flooring tools and installation accessories. These products are sold through various distribution channels including home improvement retailers, specialty hardware stores, and direct to professional contractors. The company's revenue streams are supported by its diverse product portfolio, which caters to both the DIY market and professional installers. Additionally, Q.E.P. maintains strategic partnerships with retailers and distributors, enhancing its market reach and sales volume. The company also benefits from its international operations, expanding its market presence beyond the United States, which contributes to its overall earnings.

Q.E.P. Co. Financial Statement Overview

Summary

Q.E.P. Co. demonstrates financial stability with a strong balance sheet characterized by low leverage and a high equity ratio. Although operational metrics like EBIT and EBITDA margins have improved, overall profitability remains low with declining revenues. Cash flow management could be optimized to support growth and improve returns.

Income Statement

In the TTM period, Q.E.P. Co. showed a gross profit margin of 35.03% and a net profit margin of 0.44%, indicating solid revenue generation but minimal net profit. The EBIT margin improved to 7.93%, and the EBITDA margin was 9.17%, suggesting operational improvements. However, revenue has declined compared to previous periods, reflecting potential market challenges.

Balance Sheet

Q.E.P. Co. maintains a solid equity base with an equity ratio of 58.45% in the TTM period, indicating financial stability. The debt-to-equity ratio stands at 0.29, reflecting strong capital structure management. ROE is low at 1.27%, highlighting limited returns on equity, which could be enhanced with better profit margins.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in free cash flow compared to previous periods. The operating cash flow to net income ratio of 17.95 suggests robust cash generation relative to net income. However, the free cash flow to net income ratio of 13.43 reflects the need for better free cash flow management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
219.59M	251.99M	433.66M	445.53M	387.60M	393.90M
	Gross Profit
76.91M	82.00M	114.04M	120.75M	108.69M	103.92M
	EBIT
17.42M	13.30M	3.90M	13.86M	11.11M	-12.71M
	EBITDA
20.15M	15.96M	13.07M	18.27M	15.58M	-5.59M
	Net Income Common Stockholders
958.00K	-4.71M	-63.00K	9.65M	6.90M	-12.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.47M	22.37M	5.00M	3.20M	10.90M	5.00M
	Total Assets
202.78M	125.85M	196.01M	206.36M	187.72M	184.95M
	Total Debt
62.23M	23.74M	69.90M	53.15M	51.40M	70.74M
	Net Debt
55.77M	1.37M	64.91M	49.95M	40.49M	65.74M
	Total Liabilities
127.26M	53.22M	118.17M	126.95M	116.80M	122.21M
	Stockholders Equity
75.52M	72.63M	77.84M	79.40M	70.93M	62.74M
Cash Flow		Free Cash Flow
12.86M	25.67M	-5.07M	-12.13M	24.04M	6.97M
	Operating Cash Flow
17.19M	29.48M	-72.00K	-11.04M	24.85M	8.31M
	Investing Cash Flow
31.72M	29.43M	-3.37M	1.01M	2.21M	501.00K
	Financing Cash Flow
-32.08M	-41.42M	5.30M	2.59M	-21.44M	-9.98M

Q.E.P. Co. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QEPC, the sentiment is Negative. The current price of 39 is below the 20-day moving average (MA) of 45.04, below the 50-day MA of 46.13, and above the 200-day MA of 37.18, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QEPC.

Q.E.P. Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QEPC	74 Outperform	$145.34M	8.97	19.91%	0.51%	-45.13%	702.21%
TILE	66 Neutral	$1.08B	12.51	18.90%	0.22%	4.29%	95.04%
MHK	66 Neutral	$6.61B	12.56	6.82%	―	-2.68%	―
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
FND	61 Neutral	$7.85B	36.77	10.04%	―	0.95%	-16.97%
HVT	58 Neutral	$303.86M	15.69	6.48%	6.83%	-16.15%	-66.79%
TTSH	52 Neutral	$262.59M	111.49	1.91%	―	-7.97%	-77.05%