Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $34.80M
• Dividend Yield: N/A
• Average Volume (3M): 90.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -5.20%
• EPS Growth: -275.34%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 83
• Industry: Waste Management
• EPS (TTM): -0.04
• Shares Outstanding: 20,712,204
• 10 Day Avg. Volume: 167,867
• 30 Day Avg. Volume: 90,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.28
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: -15.26
• 1Y Price Target: $1.88
• Price Target Upside: 11.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-10.71% Downside)

Quest Resource's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis further indicates bearish momentum, while the earnings call reflects mixed sentiment with ongoing challenges. The company's efforts in cost reduction and operational improvements are positive but insufficient to offset the significant financial and operational hurdles.

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

QRHC generates revenue through a diversified model that includes fees for waste collection, transportation, and disposal services. The company also earns income from its recycling operations, where materials are processed and sold to manufacturers for reuse. Additionally, QRHC's environmental consulting services provide clients with tailored solutions for waste management, contributing further to its revenue streams. Key partnerships with municipalities and businesses enhance its service offerings and expand its client base, while compliance with environmental regulations allows QRHC to capture opportunities in the growing market for sustainable waste management solutions.

Quest Resource Financial Statement Overview

Summary

Quest Resource is facing significant financial challenges with declining revenues, high leverage, and weak cash flow generation. The income statement shows negative revenue growth and profitability, the balance sheet indicates high financial risk due to leverage, and the cash flow statement highlights poor cash generation.

Income Statement

Quest Resource's income statement reveals a challenging financial position with declining revenue and profitability. The TTM data shows a negative revenue growth rate of -4.79%, indicating a contraction in sales. The gross profit margin has decreased slightly to 16.40% from 17.33% in the previous year, while the net profit margin has worsened to -9.34%. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and cost pressures. Overall, the income statement suggests a need for strategic improvements to reverse the declining trend.

Balance Sheet

The balance sheet of Quest Resource shows a high debt-to-equity ratio of 1.66, indicating significant leverage and potential financial risk. The return on equity is negative at -49.50%, reflecting poor profitability and returns for shareholders. The equity ratio stands at 28.05%, suggesting a moderate level of equity financing relative to total assets. While the company has maintained a stable asset base, the high leverage and negative ROE highlight financial vulnerabilities.

Cash Flow

Quest Resource's cash flow statement highlights significant challenges in cash generation. The free cash flow growth rate is negative at -67.21%, indicating a substantial decline in available cash. The operating cash flow to net income ratio is negative, suggesting that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is positive at 1.15, but this is due to the negative net income, not improved cash flow. Overall, the cash flow position is weak and requires attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.70M	288.53M	288.38M	284.04M	155.72M	98.66M
Gross Profit	44.40M	49.99M	50.06M	48.86M	28.82M	19.05M
EBITDA	-7.48M	5.81M	12.77M	11.37M	7.27M	3.27M
Net Income	-25.27M	-15.06M	-7.29M	-6.05M	1.69M	1.03M
Balance Sheet
Total Assets	153.06M	175.65M	177.12M	181.49M	175.67M	102.23M
Cash, Cash Equivalents and Short-Term Investments	449.00K	396.00K	324.01K	9.56M	8.43M	7.52M
Total Debt	72.28M	79.18M	67.57M	73.95M	65.73M	16.78M
Total Liabilities	110.12M	121.49M	110.84M	110.35M	102.04M	34.19M
Stockholders Equity	42.94M	54.16M	66.28M	71.14M	73.63M	68.04M
Cash Flow
Free Cash Flow	-2.77M	-10.77M	-3.26M	-4.04M	1.93M	2.59M
Operating Cash Flow	-2.40M	-6.08M	-1.36M	-2.34M	2.57M	3.10M
Investing Cash Flow	3.11M	-5.97M	-1.90M	-4.33M	-16.93M	-506.07K
Financing Cash Flow	-1.22M	12.13M	-5.98M	7.81M	15.27M	1.51M

Quest Resource Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRHC, the sentiment is Negative. The current price of 1.68 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.09, and below the 200-day MA of 4.08, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 32.14 is Neutral, neither overbought nor oversold. The STOCH value of 32.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QRHC.

Quest Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥268.00B	14.94	8.32%	2.78%	6.18%	11.46%
PESI	52 Neutral	$217.95M	―	-34.16%	―	-16.87%	-124.96%
AWX	47 Neutral	$9.83M	84.07	0.32%	―	-6.27%	308.11%
QRHC	44 Neutral	$34.80M	―	-46.57%	―	-5.20%	-275.34%
GWAV	―	$11.44M	―	-147.18%	―	―	―
AQMS	36 Underperform	$3.77M	―	-182.91%	―	-100.00%	-112.68%
AMBI	―	$272.71M	―		―	―	―

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.