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. Several key financial ratios indicate that the company is positioned for potential growth, making it attractive for investors looking for value. The price-to-book (PB) ratio for Quest Resource Holding stands at 2.47, slightly below the sector average of 2.54. A lower PB ratio suggests that the stock may be undervalued relative to its book value, indicating potential upside as the market recognizes the company’s worth. Quest’s net profit margin is notably negative at -5.22, compared to the sector's positive margin of 0.75. While this indicates current challenges in profitability, it also suggests that operational improvements could lead to significant margin recovery and enhanced profitability in the future. The return on equity (ROE) for Quest is -27.81, while the sector average is 1.94. A negative ROE highlights the company's struggle to generate profit from shareholders' equity. However, this can also indicate that the company is in a transitional phase, where improvements in operational efficiency could lead to future profitability. Lastly, the return on assets (ROA) ratio is -8.58, compared to the sector average of 0.07. A negative ROA demonstrates that the company is currently not generating sufficient returns from its assets, but it also offers the potential for a rebound as the company optimizes its asset utilization. In summary, despite current negative ratios, Quest Resource Holding’s relative valuation metrics suggest potential for recovery, making it an interesting prospect for investors. 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.