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

• Market Cap: $141.52M
• Dividend Yield: 1.58%
• Average Volume (3M): 2.01K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.36
• Revenue Growth: -5.70%
• EPS Growth: 119.03%
• Country: US
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.36
• Shares Outstanding: 3,726,781
• 10 Day Avg. Volume: 1,129
• 30 Day Avg. Volume: 2,011
• 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: 0.87
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $41.00
• Price Target Upside: 7.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $41.00 ▲(7.95% Upside)

Q.E.P. Co. has a stable financial position with strong equity and profitability metrics, but faces challenges with declining revenue and cash flow. The stock appears undervalued with a low P/E ratio and reasonable dividend yield, offering potential value to investors. Technical indicators suggest neutral to bearish sentiment, which may impact short-term performance.

Positive Factors

Strong Equity Position

A low debt-to-equity ratio suggests financial stability, providing the company with flexibility to invest in growth opportunities without excessive leverage.

Effective Use of Equity

High return on equity indicates efficient management and strong profitability, suggesting the company is effectively using its resources to generate returns.

Healthy Gross Profit Margin

A strong gross profit margin reflects the company's ability to manage costs effectively, supporting sustainable profitability and competitive pricing strategies.

Negative Factors

Declining Revenue

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact long-term growth prospects and market position.

Cash Flow Constraints

Constraints in cash flow generation can limit the company's ability to reinvest in business operations and meet financial obligations, affecting future growth.

Declining Free Cash Flow Growth

A decline in free cash flow growth can hinder the company's capacity to fund new projects and innovations, impacting its competitive edge and market expansion.

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

Company Description

Q.E.P. Co., Inc. (QEPC) is a leading manufacturer and distributor of flooring-related products and tools, serving a diverse range of industries including construction, retail, and home improvement. The company specializes in a variety of core products such as flooring installation tools, adhesives, and maintenance products, as well as offering a portfolio of brands that cater to both professional contractors and DIY consumers. With a strong presence in North America and expanding operations internationally, Q.E.P. Co. is committed to providing innovative solutions that meet the needs of its customers.

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. exhibits a balanced financial profile with strengths in operating cash flow and a stable balance sheet. Despite recent challenges in revenue growth and net income volatility, the company has managed to stabilize its financials.

Income Statement

The income statement shows a mixed performance. Gross profit margins have been relatively stable, but net profit margins have been volatile due to fluctuating net income. After a period of negative net income, the company returned to profitability in the latest year. Revenue growth remains a challenge, with recent declines in total revenue.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The company has shown improvements in stockholders' equity, which strengthens its financial position. However, the equity ratio highlights some reliance on debt.

Cash Flow

Cash flow analysis shows positive operating cash flow, which is a good sign of internal cash generation. However, free cash flow has been inconsistent, reflecting fluctuations in capital expenditures and operating cash flow. The free cash flow to net income ratio indicates efficient cash conversion when net income was positive.

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	51.40M
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: Neutral
• Last Price: 37.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QEPC, the sentiment is Neutral. The current price of 37.98 is above the 20-day moving average (MA) of 37.68, below the 50-day MA of 38.22, and below the 200-day MA of 39.71, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QEPC.

Q.E.P. Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMN	71 Outperform	$1.92B	88.59	1.82%	―	1.93%	260.13%
SWK	69 Neutral	$12.01B	24.60	5.38%	4.24%	-2.71%	―
QEPC	65 Neutral	$141.52M	7.62	20.07%	1.58%	-5.70%	119.03%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
KMT	63 Neutral	$1.58B	17.37	7.35%	3.85%	-3.91%	-12.49%
EML	60 Neutral	$154.83M	12.62	7.78%	1.73%	-0.83%	4.51%
CVR	38 Underperform	$9.47M	―	-22.36%	1.22%	-16.39%	-65.00%