Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $44.04M
• Dividend Yield: N/A
• Average Volume (3M): 146.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -9.25%
• EPS Growth: -189.37%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.02
• Shares Outstanding: 20,870,094
• 10 Day Avg. Volume: 65,443
• 30 Day Avg. Volume: 146,309
• PEG Ratio: -0.09
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.46
• P/FCF Ratio: -12.45
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 19.09
• 1Y Price Target: $2.25
• Price Target Upside: 81.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.00 ▲(61.29% Upside)

Quest Resource's overall stock score reflects significant financial challenges, including declining revenue and high leverage. While there are positive signs of operational improvements and short-term technical momentum, the negative valuation and ongoing market pressures weigh heavily on the score. The company's efforts to improve cash generation and reduce debt are positive, but substantial risks remain.

Positive Factors

Operational Efficiency

Operational efficiency initiatives have led to improved cash generation and financial results, indicating a stronger focus on cost management and resource optimization, which can enhance long-term profitability and competitive positioning.

Debt Reduction

The reduction in debt enhances financial stability and reduces interest expenses, improving the company's balance sheet health and providing more flexibility for strategic investments.

Strategic Focus on High-Value Clients

Focusing on high-value clients with complex needs can lead to more stable revenue streams and higher margins, strengthening the company's market position and competitive advantage in the waste management industry.

Negative Factors

Declining Revenue

The year-over-year decline in revenue indicates challenges in maintaining growth, which can affect the company's ability to invest in new opportunities and sustain its market position.

High Leverage

High leverage poses financial risk, limiting the company's ability to maneuver in adverse conditions and potentially impacting its creditworthiness and cost of capital.

Challenges in Industrial Markets

Prolonged challenges in industrial markets can hinder revenue growth and profitability, as these sectors are crucial for the company's waste management services, impacting long-term business sustainability.

Quest Resource Business Overview & Revenue Model

Company Description

Quest Resource Holding Corporation (QRHC) is a leading provider of waste and recycling services, primarily focused on providing innovative solutions for managing waste streams. The company operates across various sectors, including commercial, industrial, and municipal waste management. QRHC offers a range of services, including recycling, waste diversion, and consulting, aimed at helping clients reduce waste disposal costs and enhance sustainability initiatives.

How the Company Makes Money

Quest Resource generates revenue through several key streams. Primarily, the company earns income from waste management and recycling services, which involve collecting, processing, and disposing of waste for clients across different sectors. Additionally, QRHC provides consulting services that help organizations develop effective waste management strategies, further contributing to its revenue. The company also benefits from partnerships with municipalities and private enterprises that require comprehensive waste management solutions, allowing them to secure long-term contracts. Furthermore, QRHC may generate income from the sale of recycled materials, enhancing its financial performance as demand for sustainable materials continues to grow.

Quest Resource Financial Statement Overview

Summary

Quest Resource faces significant financial challenges, with declining revenue, negative profitability, and high leverage. The company's ability to manage costs and improve cash flow is crucial for future stability. While the industry may present cyclical challenges, strategic improvements are necessary to enhance financial health and shareholder value.

Income Statement

Quest Resource's income statement reveals declining revenue with a negative growth rate of -3.48% in the TTM period. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. Gross profit margin has slightly decreased over the years, reflecting pressure on cost management. The negative trends in revenue and profitability are concerning, although the industry typically faces cyclical challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.68 in the TTM period, indicating significant leverage. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains stable, suggesting a reasonable proportion of equity financing. The high leverage poses a risk, but the company maintains a balanced asset structure.

Cash Flow

Cash flow analysis indicates negative free cash flow growth and a challenging operating cash flow position. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses. Overall, cash flow management appears weak, with potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	261.28M	288.53M	288.38M	284.04M	155.72M	98.66M
Gross Profit	44.16M	49.99M	50.06M	48.86M	28.71M	19.06M
EBITDA	5.24M	11.44M	14.40M	14.45M	9.12M	2.95M
Net Income	-23.23M	-15.06M	-7.29M	-6.05M	1.69M	1.03M
Balance Sheet
Total Assets	149.28M	175.65M	177.12M	181.49M	175.67M	102.23M
Cash, Cash Equivalents and Short-Term Investments	1.15M	396.00K	324.01K	9.56M	8.43M	7.52M
Total Debt	66.80M	79.18M	67.57M	73.95M	65.73M	16.78M
Total Liabilities	107.28M	121.49M	110.84M	110.35M	102.04M	34.19M
Stockholders Equity	42.01M	54.16M	66.28M	71.14M	73.63M	68.04M
Cash Flow
Free Cash Flow	2.17M	-12.05M	-3.26M	-4.04M	1.93M	2.65M
Operating Cash Flow	3.74M	-6.08M	-1.36M	-2.34M	2.57M	3.10M
Investing Cash Flow	3.17M	-5.97M	-1.90M	-4.33M	-16.93M	-506.07K
Financing Cash Flow	-6.90M	12.13M	-5.98M	7.81M	15.27M	1.51M

Quest Resource Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Positive. The current price of 1.24 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 1.60, and below the 200-day MA of 2.12, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 71.59 is Negative, neither overbought nor oversold. The STOCH value of 88.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QRHC.

Quest Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PESI	60 Neutral	$237.71M	―	-23.26%	―	-9.64%	40.01%
QRHC	51 Neutral	$44.04M	―	-44.35%	―	-9.25%	-189.37%
AWX	47 Neutral	$10.65M	59.22	0.47%	―	-4.84%	-81.73%
AQMS	36 Underperform	$21.09M	-0.07	-187.08%	―	―	-106.93%

Quest Resource Corporate Events

Quest Resource Updates Investor Presentation for Growth

Quest Resource Holding Corporation has released an updated investor presentation, replacing previous versions, to provide insights into its strategic focus and financial performance. The company emphasizes its transformation towards offering complex, differentiated services to high-value clients, resulting in improved business profiles and revenue growth. Quest highlights its commitment to sustainability and regulatory compliance, addressing key challenges in waste management and recycling. The company reports a significant compound annual growth rate in gross profit and revenue, driven by organic growth and disciplined mergers and acquisitions, while also noting the importance of non-GAAP financial measures for evaluating performance.

Quest Resource Appoints New Senior Vice President

Quest Resource Holding Corporation announced that David P. Sweitzer, the Chief Operating Officer and Executive Vice President, resigned from his positions on October 20, 2025. Following this, the company appointed Felipe Garcia as Senior Vice President of Key Accounts on October 21, 2025, where he will lead customer teams and develop strategic relationships, leveraging his extensive experience from Republic Services Group and the facility maintenance industry.