QRHC is now undervalued and could go up 117%

Based on our analysis, Quest Resource Holding appears to be undervalued with a rating of 4 out of 5 stars. Despite facing challenges reflected in its financial ratios, the company shows potential for recovery and growth. The Price-to-Book (PB) ratio for Quest Resource Holding stands at 2.47, slightly below the sector average of 2.54. This indicates that the company's stock may be undervalued compared to its assets. A lower PB ratio suggests that investors might be paying less for each dollar of net assets, which could signal an attractive entry point for potential investors. However, the company's net profit margin is concerning at -5.22%, compared to the sector average of 0.75%. This negative margin indicates that the company is currently operating at a loss, but it also highlights the potential for operational improvements. If Quest Resource can enhance its efficiency and profitability, it could lead to a significant turnaround. Additionally, the Return on Equity (ROE) ratio is -27.81, starkly contrasting with the sector's average of 1.94. This negative ROE suggests that the company is not generating returns for its shareholders at this time. However, it also presents a chance for improvement if management successfully implements strategic initiatives. Finally, the Return on Assets (ROA) ratio of -8.58, compared to the sector average of 0.07, indicates inefficiencies in asset utilization. If Quest Resource can optimize its asset management, it may enhance profitability moving forward. 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.