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

• Market Cap: $141.62M
• Dividend Yield: 2.16%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.34
• Revenue Growth: -5.70%
• EPS Growth: 119.03%
• Country: US
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.18
• Shares Outstanding: 3,726,781
• 10 Day Avg. Volume: 954
• 30 Day Avg. Volume: 1,182
• PEG Ratio: -0.02
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 19.67
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 5.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $39.00 ▲(6.85% Upside)

Q.E.P. Co.'s overall stock score is driven by its stable financial performance and attractive valuation. The company's strong equity position and low leverage are positive, but challenges in revenue growth and cash conversion are concerns. Technical indicators suggest mixed market sentiment, with potential overbought conditions.

Positive Factors

Strong Balance Sheet

A low Debt-to-Equity Ratio indicates reduced financial risk and strong financial stability, allowing the company to invest in growth opportunities without excessive debt burden.

Cash Flow Improvement

Improved cash generation capabilities enhance the company's ability to fund operations, invest in growth, and provide returns to shareholders, supporting long-term financial health.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management and operational efficiency, which can sustain profitability even in challenging market conditions.

Negative Factors

Revenue Decline

A decline in revenue growth suggests potential market or operational challenges, which could impact future profitability and market competitiveness if not addressed.

Low Net Profit Margin

A low Net Profit Margin indicates challenges in converting revenue into profit, which may limit the company's ability to invest in growth and improve shareholder returns.

Revenue Decline in Q2

A year-over-year decline in Q2 revenue highlights potential demand issues or competitive pressures, which could affect long-term growth prospects if not addressed.

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

Company Description

Q.E.P. Co., Inc., together with its subsidiaries, manufactures, markets, and distributes a range of hardwood flooring, flooring installation tools, adhesives, and flooring related products for the professional installer markets. It operates through three segments: North America, Europe, and Australia/New Zealand. The company's product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers; scrapers; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; scarpers and blades clean-up, repair, and maintenance products; knee pads and safety tools; installation kits; underlayment products; cement boards and masonry tools; and Brutus products. The company markets its products under the QEP, LASH, Roberts, Harris Flooring Group, Capitol, HarrisWood, Kraus, Naturally Aged Flooring, Vitrex, Homelux, Brutus, PRCI, Plasplugs, Tomecanic, Premix-Marbletite (PMM), Apple Creek, and Elastimentt brands. It sells its products to home improvement retail centers, specialty distribution outlets, and flooring dealers. Q.E.P. Co., Inc. was founded in 1979 and is based in Boca Raton, Florida.

How the Company Makes Money

Q.E.P. Co. generates revenue primarily through the sale of its flooring products and tools to retailers, contractors, and distributors. The company has several key revenue streams, including direct sales to major home improvement chains, online sales, and wholesale distribution. By maintaining strong relationships with retailers and providing a wide range of high-quality products, QEPC capitalizes on the growing demand for flooring solutions. Additionally, Q.E.P. Co. benefits from strategic partnerships with various suppliers and brands, enhancing its product offerings and market reach. The company's ability to adapt to market trends and consumer preferences also plays a significant role in its revenue generation.

Q.E.P. Co. Financial Statement Overview

Summary

Q.E.P. Co. demonstrates a stable financial performance with strong equity and efficient operations. However, challenges in revenue growth and cash conversion may impact future profitability. The low leverage and strong ROE are positive indicators of financial health.

Income Statement

Q.E.P. Co. shows a mixed performance in its income statement. The TTM Gross Profit Margin is healthy at 35.89%, indicating efficient cost management. However, the Net Profit Margin is relatively low at 6.89%, reflecting challenges in converting revenue into profit. The Revenue Growth Rate has declined by 2.03% in the TTM, suggesting potential market or operational challenges. Despite these issues, the EBIT and EBITDA margins are stable, indicating operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.26 in the TTM, indicating low leverage and reduced financial risk. The Return on Equity is strong at 19.25%, showcasing effective use of equity to generate profits. The Equity Ratio stands at 65.63%, highlighting a solid equity base relative to total assets, which provides financial stability.

Cash Flow

Cash flow analysis reveals a positive Free Cash Flow Growth Rate of 21.27% in the TTM, indicating improved cash generation capabilities. However, the Operating Cash Flow to Net Income Ratio is relatively low at 0.39, suggesting potential challenges in converting accounting profits into cash. The Free Cash Flow to Net Income Ratio is moderate at 0.53, reflecting a balanced cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.94M	243.83M	251.99M	433.66M	445.53M	387.60M
Gross Profit	85.05M	86.57M	82.00M	114.04M	120.75M	108.69M
EBITDA	21.58M	21.20M	15.96M	13.07M	18.27M	15.58M
Net Income	16.32M	16.25M	-4.71M	-63.00K	9.65M	6.90M
Balance Sheet
Total Assets	136.54M	138.27M	125.85M	196.01M	206.36M	187.72M
Cash, Cash Equivalents and Short-Term Investments	34.37M	28.55M	22.37M	5.00M	3.20M	10.90M
Total Debt	23.01M	24.09M	23.74M	69.90M	53.15M	51.69M
Total Liabilities	46.95M	55.34M	53.22M	118.17M	126.95M	116.80M
Stockholders Equity	89.60M	82.93M	72.63M	77.84M	79.40M	70.93M
Cash Flow
Free Cash Flow	5.51M	8.19M	25.67M	-5.07M	-12.13M	24.04M
Operating Cash Flow	10.33M	12.74M	29.48M	-72.00K	-11.04M	24.85M
Investing Cash Flow	-2.89M	312.00K	29.43M	-3.37M	1.01M	2.21M
Financing Cash Flow	-2.98M	-6.86M	-41.42M	5.30M	2.59M	-21.44M

Q.E.P. Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QEPC, the sentiment is Positive. The current price of 36.5 is above the 20-day moving average (MA) of 36.36, below the 50-day MA of 36.91, and below the 200-day MA of 38.35, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 96.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QEPC.

Q.E.P. Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMT	72 Outperform	$2.23B	24.02	7.36%	2.74%	-2.63%	-4.46%
SWK	68 Neutral	$11.60B	25.90	4.92%	4.42%	-1.40%	―
EML	64 Neutral	$116.34M	22.37	4.98%	2.24%	-8.54%	-68.18%
QEPC	64 Neutral	$141.62M	7.61	19.31%	2.16%	-5.70%	119.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HLMN	61 Neutral	$1.77B	48.25	3.11%	―	4.47%	345.07%
CVR	38 Underperform	$13.48M	-3.75	-16.20%	0.84%	-12.32%	0.17%