Quest Resource (QRHC) AI Stock Analysis

• Market Cap: $46.43M
• Dividend Yield: N/A
• Average Volume (3M): 84.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -0.91%
• EPS Growth: -305.99%
• Country: US
• Employees: 224
• Sector: Industrials
• Sector Strength: 93
• Industry: Waste Management
• EPS (TTM): -0.14
• Shares Outstanding: 20,636,557
• 10 Day Avg. Volume: 71,401
• 30 Day Avg. Volume: 84,726
• PEG Ratio: 0.04
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 150.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $2.00 ▼(-9.09%Downside)

Quest Resource faces significant challenges in financial performance, with persistent losses and cash flow issues. Weak technical indicators suggest continued downward pressure on the stock. While the earnings call shows strategic initiatives for improvement, immediate financial gains are uncertain. The corporate event's positive outlook provides some long-term potential, but overall risks remain high.

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 makes money primarily through its waste management and recycling services. The company charges fees for waste collection, transportation, and disposal, as well as for recycling services that help clients manage their waste streams sustainably. Additionally, Quest Resource offers sustainability consulting services, providing expertise and strategies to help businesses reduce their environmental footprint. Key revenue streams include recurring service contracts with businesses across multiple industries. Partnerships with waste processing facilities and recycling centers also play a significant role in their earnings, enabling them to offer comprehensive and integrated solutions to their clients.

Quest Resource Financial Statement Overview

Summary

Quest Resource's financial health is under strain with negative margins, stagnant revenue growth, increased leverage, and liquidity concerns. These factors indicate the need for strategic improvements to enhance financial stability.

Income Statement

Quest Resource's financial results show fluctuations in profitability with a negative net income in recent years. The gross profit margin has been relatively stable but the net profit margin is negative due to losses. Revenue growth has stalled recently, with minimal change from the prior year. The EBIT and EBITDA margins have turned negative, indicating operational challenges.

Balance Sheet

The company's balance sheet indicates a moderate debt-to-equity ratio, though the rising debt levels and declining equity are concerning. The return on equity is negative due to recent losses, which might affect future financial stability. The equity ratio has decreased over time, highlighting increased leverage.

Cash Flow

Quest Resource's cash flow statement reveals negative operating and free cash flows, indicating liquidity constraints. The operating cash flow to net income ratio is negative, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is also negative, highlighting inefficiencies in cash use.

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
	EBIT
-4.46M	2.82M	1.41M	4.62M	2.16M
	EBITDA
5.81M	13.11M	11.78M	7.49M	3.47M
	Net Income Common Stockholders
-15.06M	-7.29M	-6.05M	1.69M	1.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
396.00K	324.01K	9.56M	8.43M	7.52M
	Total Assets
175.65M	177.12M	181.49M	175.67M	102.23M
	Total Debt
79.18M	67.57M	71.73M	63.74M	15.57M
	Net Debt
78.79M	67.24M	62.17M	55.31M	8.06M
	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: Negative
• Last Price: 2.20
• 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 Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.29, below the 50-day MA of 2.39, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 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 *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
TPIC	49 Neutral	$66.16M	―	77.71%	―	1.71%	-3.55%
QRHC	46 Neutral	$46.43M	―	-44.84%	―	-0.91%	-305.99%
CETY	44 Neutral	$15.76M	―	-90.36%	―	-87.59%	51.14%
AQMS	36 Underperform	$7.03M	―	-167.48%	―	-100.00%	24.94%
YGMZ	35 Underperform	$93.55M	5.34	-13.60%	―	-49.19%	-1214.66%
RAYA		$67.32M	―	-4.77%	―	―	―

Quest Resource Corporate Events

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.

Quest Resource Updates Investor Presentation on Growth Strategy

Quest Resource Holding Corporation has released an updated investor presentation, replacing previous versions, to be presented at investor meetings. The company emphasizes its growth strategy and focus on providing value-added services to high-value clients in strategic markets, resulting in a sustainable improvement in profitability. Quest’s transformation includes exiting low-value accounts, expanding through disciplined M&A, and achieving a 20% CAGR in revenue from 2016 to 2024. The company aims to enhance sustainability and compliance for its clients, addressing key challenges in the waste and recycling industry.

Quest Resource Appoints New CEO Amid Financial Report

On March 12, 2025, Quest Resource Holding Corporation announced the retirement of its President and CEO, S. Ray Hatch, effective immediately, with his final employment day being March 28, 2025. Perry W. Moss, previously the Chief Revenue Officer, has been appointed as the new President and CEO. The company also reported its financial results for the fourth quarter and fiscal year 2024, highlighting a slight increase in revenue but a decrease in gross profit and adjusted EBITDA compared to the previous year. Quest made significant strides in client acquisition and operational efficiency, including refinancing debt, securing new clients, and reducing headcount, which are expected to improve long-term performance and shareholder value.