Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $37.70M
• Dividend Yield: N/A
• Average Volume (3M): 90.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -5.20%
• EPS Growth: -275.34%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 73
• Industry: Waste Management
• EPS (TTM): -0.04
• Shares Outstanding: 20,712,204
• 10 Day Avg. Volume: 60,099
• 30 Day Avg. Volume: 90,961
• 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: 3.03
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: -15.26
• 1Y Price Target: $2.75
• Price Target Upside: 51.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: $2.00 ▲(9.89% Upside)

Quest Resource's overall stock score is driven by significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. Technical indicators suggest a bearish trend, and valuation metrics are unattractive. While there are some positive developments in operational improvements and debt reduction, these are overshadowed by ongoing revenue declines and sector challenges.

Quest Resource Business Overview & Revenue Model

Company Description

Quest Resource Holding Corporation (QRHC) is a leading provider of waste management and recycling services based in the United States. The company operates primarily in the environmental services sector, focusing on sustainable solutions for various industries, including commercial, industrial, and municipal sectors. QRHC offers a comprehensive suite of services that includes waste disposal, recycling programs, and environmental consulting, enabling its clients to manage their waste responsibly while adhering to regulatory requirements.

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 experiencing significant financial challenges, including declining revenues, high leverage, and weak cash flow generation. These factors indicate financial instability and potential risks if corrective measures are not implemented.

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: Neutral
• Last Price: 1.82
• 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 QRHC, the sentiment is Neutral. The current price of 1.82 is above the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.97, and below the 200-day MA of 3.66, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 67.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QRHC.

Quest Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
PESI	52 Neutral	$222.38M	―	-34.16%	―	-16.87%	-124.96%
AWX	47 Neutral	$9.75M	80.79	0.32%	―	-6.27%	308.11%
QRHC	46 Neutral	$37.70M	―	-46.57%	―	-5.20%	-275.34%
GWAV	―	$3.57M	―	-147.18%	―	―	―
AQMS	36 Underperform	$5.08M	―	-182.91%	―	-100.00%	-112.68%
AMBI	―	$252.21M	―		―	―	―

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.