QRHC is now undervalued and could go up 117%

Based on our analysis, Quest Resource Holding has received an undervalued rating of 4 out of 5 stars from Cashu. This rating is supported by several key financial ratios that indicate potential for growth and improvement compared to sector averages. Firstly, the Price-to-Book (PB) Ratio for Quest Resource Holding stands at 2.22, which is lower than the sector average of 2.46. A lower PB ratio suggests that the company may be undervalued relative to its assets, indicating potential for price appreciation as the market corrects this discrepancy. In terms of profitability, Quest Resource Holding has a Net Profit Margin of -2.53, significantly lower than the sector average of 0.81. While a negative margin indicates current challenges in profitability, there are opportunities for operational improvements that could enhance future earnings. The Return on Equity (ROE) for Quest stands at -11.00, compared to the sector average of 1.70. Although this negative figure reflects past performance issues, it also highlights a potential turnaround opportunity if the company implements effective strategies to generate profit from shareholder equity. Lastly, the Return on Assets (ROA) Ratio is recorded at -4.12, again below the sector average of 0.37. This negative return indicates that the company is currently not utilizing its assets effectively, but it also suggests a chance for management to enhance operational efficiency. In conclusion, while Quest Resource Holding faces financial challenges, its lower valuation metrics compared to the sector highlight potential for recovery and growth, making it an interesting candidate for investors seeking undervalued opportunities. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.