Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $43.85M
• Dividend Yield: N/A
• Average Volume (3M): 153.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -0.91%
• EPS Growth: -305.99%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 94
• Industry: Waste Management
• EPS (TTM): -0.14
• Shares Outstanding: 20,681,818
• 10 Day Avg. Volume: 60,991
• 30 Day Avg. Volume: 153,186
• PEG Ratio: 0.03
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.00
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 4.25
• 1Y Price Target: $5.50
• Price Target Upside: 152.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $2.00 ▼(-8.26%Downside)

Quest Resource's overall stock score is primarily impacted by its struggling financial performance and weak valuation metrics. Although technical analysis suggests neutral momentum, the company's significant financial and operational challenges overshadow these indicators. Continued focus on cost reduction and operational improvements is necessary to improve the outlook.

Quest Resource Business Overview & Revenue Model

Company Description

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

How the Company Makes Money

Quest Resource generates revenue primarily through the provision of waste and recycling management services. The company offers customized programs that include waste collection, transportation, disposal, and recycling services to commercial, industrial, and retail clients. Key revenue streams include service fees for waste management, recycling processing, and consulting services aimed at optimizing clients' sustainability initiatives. Additionally, Quest Resource may benefit from partnerships with waste haulers and recycling facilities, which enable them to offer comprehensive and cost-effective solutions. Their earnings are influenced by service contract agreements, waste volume processed, and efficiency in managing operational costs.

Quest Resource Financial Statement Overview

Summary

Quest Resource faces significant financial challenges. The income statement shows negative profitability margins and stagnant revenue growth. The balance sheet reveals moderate leverage but declining equity, and the cash flow statement highlights liquidity issues with negative free cash flow and operating cash flow.

Income Statement

The income statement reveals a challenging financial performance. The gross profit margin is relatively stable, but the company is experiencing significant negative net income, impacting the net profit margin adversely. Revenue growth is stagnant with a slight decline in the TTM period. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies or high costs impacting profitability.

Balance Sheet

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio indicating reliance on debt financing. Equity ratio suggests moderate equity financing, but the declining stockholders' equity is a concern. Return on equity is negative, reflecting net losses impacting shareholder returns.

Cash Flow

The cash flow statement indicates a negative free cash flow and operating cash flow, suggesting liquidity challenges. The negative free cash flow growth rate underscores persistent cash flow issues, and the ratios of cash flow to net income highlight operational struggles.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.53M	288.38M	284.04M	155.72M	98.66M
Gross Profit	49.99M	50.06M	48.86M	28.82M	19.05M
EBITDA	5.81M	12.77M	11.37M	7.27M	3.27M
Net Income	-15.06M	-7.29M	-6.05M	1.69M	1.03M
Balance Sheet
Total Assets	175.65M	177.12M	181.49M	175.67M	102.23M
Cash, Cash Equivalents and Short-Term Investments	396.00K	324.01K	9.56M	8.43M	7.52M
Total Debt	79.18M	67.57M	71.73M	63.74M	15.57M
Total Liabilities	121.49M	110.84M	110.35M	102.04M	34.19M
Stockholders Equity	54.16M	66.28M	71.14M	73.63M	68.04M
Cash Flow
Free Cash Flow	-10.77M	-3.26M	-4.04M	1.93M	2.59M
Operating Cash Flow	-6.08M	-1.36M	-2.34M	2.57M	3.10M
Investing Cash Flow	-5.97M	-1.90M	-4.33M	-16.93M	-506.07K
Financing Cash Flow	12.13M	-5.98M	7.81M	15.27M	1.51M

Quest Resource Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.18
• 50DMA: Positive
• 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 QRHC, the sentiment is Positive. The current price of 2.18 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.17, and below the 200-day MA of 4.57, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.53 is Neutral, 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 *	65 Neutral	$11.08B	15.70	5.19%	2.15%	3.13%	-24.94%
AWX	61 Neutral	$10.11M	12.66	2.21%	―	<0.01%	―
PESI	60 Neutral	$225.58M	―	-41.10%	―	-28.62%	-543.45%
QRHC	46 Neutral	$43.85M	―	-44.84%	―	-0.91%	-305.99%
GWAV	―	$17.74M	―	-147.18%	―	―	―
AQMS	36 Underperform	$5.57M	―	-167.48%	―	-100.00%	24.94%
AMBI	―	$258.30M	―		―	―	―

Quest Resource Corporate Events

Quest Resource Holds 2025 Annual Stockholders Meeting

On July 8, 2025, Quest Resource Holding Corporation held its 2025 Annual Meeting of Stockholders, where several key matters were voted on by the stockholders. These included the election of two Class I directors, an advisory vote on executive compensation, a vote on the frequency of future advisory votes on executive compensation, and the ratification of the appointment of Semple, Marchal and Cooper, LLP as the independent registered public accountant for the fiscal year ending December 31, 2025. All proposals were approved by the requisite vote of the stockholders.

The most recent analyst rating on (QRHC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Quest Resource stock, see the QRHC Stock Forecast page.

Quest Resource Amends Credit Agreements for Flexibility

On May 12, 2025, Quest Resource Holding Corporation and its domestic subsidiaries entered into amendments to their existing credit agreements with Monroe Capital Management Advisors, LLC and PNC Bank, National Association. These amendments waived financial covenant testing for the first quarter of 2025 and modified interest rates and financial covenants, impacting the company’s financial flexibility and operational strategy. Additionally, an intercreditor agreement amendment was made to define the relative rights of PNC Bank and Monroe Capital concerning their collateral interests.

The most recent analyst rating on (QRHC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Quest Resource stock, see the QRHC Stock Forecast page.

Quest Resource Modifies Board with New Cooperation Agreement

On May 7, 2025, Quest Resource Holding Corporation entered into a Cooperation Agreement with the Wynnefield Group to modify its Board of Directors. The agreement involves increasing the board size to seven directors, appointing Robert Lipstein as a new Class III director, and including him in the Audit Committee. The agreement also outlines conditions for replacing the director if necessary and includes provisions for voting commitments, standstill, and non-disparagement during the Cooperation Period, which extends until 30 days before the 2027 Annual Meeting’s nomination deadline.