QRHC is now undervalued and could go up 117%

Based on our analysis, Quest Resource Holding (QRHC) has been assigned an undervalued rating of 4 out of 5 stars by Cashu. This rating stems from several key financial ratios that suggest potential for improvement and growth in the company’s operations. 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 can indicate that the stock is undervalued relative to its assets, presenting a potential opportunity for investors. The negative net profit margin of -5.22, compared to the sector average of 0.75, signifies that the company is currently facing challenges in profitability. However, this could suggest room for operational improvements and future profitability. Furthermore, the return on equity (ROE) ratio of -27.81 is considerably lower than the sector average of 1.94. A negative ROE indicates that the company is currently not generating profit from its equity investments, but it may also highlight the potential for recovery and improvement in shareholder returns. Lastly, Quest Resource Holding's return on assets (ROA) ratio is -8.58, compared to the sector average of 0.07, indicating inefficiencies in asset utilization. Nonetheless, such a significant discrepancy could point to future operational enhancements that may improve profitability. In summary, while current financial ratios suggest challenges, they also indicate significant potential for improvement, justifying the company's undervalued rating. 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.