Company Overview
Quest Resource Holding Corporation operates within the Industrials sector, specifically focusing on the Waste Management industry, where it delivers comprehensive solutions for the reuse, recycling, and disposal of various waste streams and recyclables across the United States. The company's operational scope includes providing specialized disposal and recycling services for specific materials such as cardboard, paper, metals, used motor oil, oil filters, and scrap tires to address environmental and logistical needs. In terms of scale, the organization maintains a market capitalization of $23.89M and employs a workforce of 195 individuals to support its service delivery. With an annual revenue of $250.22M, the company demonstrates a significant operational footprint, yet the market cap suggests a relatively small-cap classification that reflects a niche position in the broader waste management landscape rather than a dominant market leader. The disparity between the substantial revenue generation and the modest market valuation indicates that the market may be pricing in specific risks or limited growth visibility associated with its current operational model and sector dynamics.
Financial Health
The company reported a revenue of $250.22M over the trailing twelve months, yet it recorded a net income of $-15,382,000, while generating an EBITDA of $5.68M. The significant negative gap between the positive revenue figure and the substantial net loss reveals a cost structure where operating expenses and tax provisions likely outweigh the gross profits generated from waste disposal services. Despite the accounting loss, the company produced a free cash flow of $21.05M, which indicates a degree of financial flexibility to fund operations, service customers, or potentially reduce its outstanding debt without immediate external financing. The margin analysis shows a gross margin of 17.0%, an operating margin of 0.5%, and a profit margin of -6.1%, suggesting that while the core recycling and disposal activities are somewhat profitable at the gross level, high overhead costs and other expenses are eroding operating and net profitability. The balance sheet shows a cash position of $1.01M against total debt of $67.15M, resulting in a debt-to-equity ratio of 165.75, which characterizes the company as highly leveraged with a conservative cash reserve relative to its obligations. Liquidity is assessed via a current ratio of 1.29, indicating that the company possesses slightly more current assets than current liabilities, providing a modest buffer for short-term financial obligations. Finally, the return on equity stands at -32.5% and the return on assets is -0.1%, metrics that reveal that management has not yet achieved positive capital efficiency or effectiveness in generating returns on the shareholder and asset base.
Valuation Assessment
Valuation metrics for Quest Resource Holding Corporation include a trailing twelve-month P/E ratio of N/A and a forward P/E of 8.34. The absence of a trailing P/E due to negative earnings contrasts with the forward P/E, implying that the market is pricing in an expected trajectory where earnings must turn positive to validate the forward multiple. The price-to-book ratio is 0.59, which indicates that the company is trading significantly below its book value, suggesting the market assigns little premium to its assets or expects potential value erosion. Alternative valuation metrics such as a price-to-sales ratio of 0.10 and an EV/EBITDA of 15.84 provide context on how the market values the company relative to its sales and operational cash flow before interest and taxes. Regarding price momentum, the stock has a 52-week high of $3.06 and a 52-week low of $0.81. Without a specific current price provided in the data, the valuation context is strictly defined by these historical bounds, which establish the maximum and minimum volatility ranges observed during the past year. The stock exhibits a beta of 0.08, which indicates that the price volatility is extremely low relative to the broader market, moving independently of general equity market swings.
Growth & Income
Revenue growth year-over-year stands at -15.8%, while earnings growth is N/A due to the negative earnings reported in the trailing twelve months. Since earnings are currently negative, a direct comparison of growth rates between revenue and earnings is not mathematically possible, but the decline in revenue suggests a contraction in the business or a reduction in service volumes rather than growth. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute cash to shareholders and instead retains all earnings. This retention strategy, combined with the company's current financial state, implies a focus on internal resource allocation rather than income generation through dividends. The overall growth and income profile is characterized by negative revenue expansion, significant operational losses, and a lack of dividend distribution, reflecting a company in a challenging phase of its financial lifecycle.