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

• Market Cap: $138.90M
• Dividend Yield: 2.23%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.32
• 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: 0.45
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $40.00 ▲(11.45% Upside)

Q.E.P. Co.'s overall stock score reflects a combination of stable financial performance and attractive valuation, offset by technical indicators suggesting limited momentum. The company's strong equity position and low P/E ratio are significant positives, but challenges in revenue growth and cash flow generation are notable risks.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Healthy Gross Profit Margin

A healthy gross profit margin reflects effective cost management, allowing the company to maintain profitability even in challenging market conditions, supporting long-term financial health.

Robust Return on Equity

A robust return on equity indicates efficient use of shareholder funds to generate profits, enhancing investor confidence and supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue growth poses a risk to future profitability and market position, as it may indicate weakening demand or competitive pressures impacting sales.

Cash Flow Challenges

Cash flow challenges can limit the company's ability to invest in growth initiatives and meet financial obligations, potentially affecting long-term operational stability.

Negative Revenue Growth

Negative revenue growth reflects potential market share loss or reduced demand, which could impact the company's competitive position and future earnings potential.

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. shows a stable financial position with strong equity and profitability metrics, such as a healthy gross profit margin and robust return on equity. However, declining revenue and cash flow challenges pose risks to future growth.

Income Statement

Q.E.P. Co. shows a mixed performance in its income statement. The TTM gross profit margin is healthy at 35.87%, indicating efficient cost management. However, the revenue growth rate is negative, suggesting declining sales. Net profit margin is modest at 6.73%, reflecting moderate profitability. The EBIT and EBITDA margins are stable, showing consistent operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.27, suggesting low leverage and financial stability. Return on equity is robust at 20.04%, demonstrating effective use of equity to generate profits. The equity ratio is healthy, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. However, the free cash flow to net income ratio is reasonable, suggesting some ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	241.83M	243.83M	251.99M	433.66M	445.53M	387.60M
Gross Profit	86.74M	86.57M	82.00M	114.04M	120.75M	108.69M
EBITDA	22.05M	21.20M	15.96M	13.07M	18.27M	15.58M
Net Income	16.29M	16.25M	-4.71M	-63.00K	9.65M	6.90M
Balance Sheet
Total Assets	131.00M	138.27M	125.85M	196.01M	206.36M	187.72M
Cash, Cash Equivalents and Short-Term Investments	30.48M	28.55M	22.37M	5.00M	3.20M	10.90M
Total Debt	23.64M	24.09M	23.74M	69.90M	53.15M	51.69M
Total Liabilities	44.59M	55.34M	53.22M	118.17M	126.95M	116.80M
Stockholders Equity	86.42M	82.93M	72.63M	77.84M	79.40M	70.93M
Cash Flow
Free Cash Flow	4.54M	8.19M	25.67M	-5.07M	-12.13M	24.04M
Operating Cash Flow	9.31M	12.74M	29.48M	-72.00K	-11.04M	24.85M
Investing Cash Flow	-2.82M	312.00K	29.43M	-3.37M	1.01M	2.21M
Financing Cash Flow	-6.40M	-6.86M	-41.42M	5.30M	2.59M	-21.44M

Q.E.P. Co. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 35.89 is below the 20-day moving average (MA) of 36.85, below the 50-day MA of 37.18, and below the 200-day MA of 39.15, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 8.37 is Positive, 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
KMT	71 Outperform	$2.13B	22.90	7.36%	2.87%	-2.63%	-4.46%
SWK	64 Neutral	$11.03B	24.65	4.92%	4.57%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
QEPC	62 Neutral	$138.90M	7.46	19.31%	2.23%	-5.70%	119.03%
HLMN	61 Neutral	$1.78B	82.30	3.11%	―	4.47%	345.07%
EML	53 Neutral	$114.45M	22.01	4.98%	2.28%	-8.54%	-68.18%
CVR	38 Underperform	$8.70M	―	-16.20%	1.12%	-12.32%	0.17%