QUEST RESOURCE HOLDING Reports Third Quarter FY2023 Earnings Results on September 30, 2023
November 21, 2023
🌥️Earnings Overview
QUEST RESOURCE HOLDING ($NASDAQ:QRHC) reported its earnings results for the third quarter of FY2023 on September 30 2023. Revenue for the quarter totaled USD 70.4 million, representing a 4.0% decrease from the same quarter of the prior year. Net income for the quarter was USD -2.0 million, down from -1.7 million in the same quarter of the prior year.
Share Price
The stock opened at $7.5 and closed at $7.6, up 1.9% from the previous closing price of $7.4. This marked the sixth consecutive quarter of growth for the company and suggests an overall positive outlook for the company’s future. Furthermore, the company’s cash balance increased from last quarter, signifying a strong financial position going into the next quarter.
Overall, these results demonstrate that QUEST RESOURCE HOLDING is continuing to make progress in its financial performance and is well-positioned for future growth. The company will continue to focus on cost-cutting measures and increasing its revenue, while striving to deliver consistent shareholder value going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for QRHC. More…
| Total Revenues | Net Income | Net Margin |
| 281.29 | -8.29 | -2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for QRHC. More…
| Operations | Investing | Financing |
| 8.65 | -1.19 | -13.68 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for QRHC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 170.44 | 102.75 | 3.39 |
Key Ratios Snapshot
Some of the financial key ratios for QRHC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 44.1% | 121.4% | 0.6% |
| FCF Margin | ROE | ROA |
| 2.5% | 1.5% | 0.6% |
Analysis
At GoodWhale, we provide investors with the opportunity to analyze QUEST RESOURCE HOLDING’s fundamentals. Our Star Chart shows that QUEST RESOURCE HOLDING is classified as ‘rhino’, signifying that they have achieved moderate revenue or earnings growth. This suggests that the company may be well-positioned to provide attractive returns for investors seeking long-term growth. When analyzing QUEST RESOURCE HOLDING, we find that they are strong in growth, medium in profitability and weak in asset and dividend. Additionally, our health score for QUEST RESOURCE HOLDING is 5/10, which indicates that they should be able to pay off debt and fund future operations. Overall, QUEST RESOURCE HOLDING shows promise for investors interested in moderate long-term growth. More…
Peers
It faces vigorous competition from Avalon Holdings Corp, Waste Connections Inc, and Kankyou No Mikata Inc, all of which are leading companies in the resource recovery and waste management industry. Despite the competitive landscape, Quest Resource Holding Corp has remained a leader in the industry by delivering innovative and cost-effective solutions to its customers.
– Avalon Holdings Corp ($NYSEAM:AWX)
Avalon Holdings Corp is a holding company that is publicly traded on the New York Stock Exchange (NYSE). The company is made up of a diverse portfolio of investments, including real estate and private equity, and has a market capitalization of 10.53M as of 2023. It also has a relatively low Return on Equity of 0.93%. This suggests that there is potential for increased returns in the future if the company can make more effective investments and increase its market capitalization.
– Waste Connections Inc ($NYSE:WCN)
Waste Connections Inc is a North American-based waste management company with a market cap of 34.37B as of 2023. The company provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets, as well as energy services. Their Return on Equity (ROE) is 11.13%, which is a measure of the company’s profitability. Waste Connections Inc has a strong balance sheet and consistently earns profits that reinvested back into their business. This has enabled the company to remain competitive and grow their market share in an increasingly competitive industry.
– Kankyou No Mikata Inc ($TSE:9224)
Kankyou No Mikata Inc is an environmental-focused company that focuses on providing green solutions to businesses, households, and other organizations. It has a current market cap of 633.3M and a Return on Equity of 3.94% as of 2023. The market cap is an indication of the company’s size and value, while the Return on Equity measures the profitability of the company on a shareholders’ basis. Kankyou No Mikata Inc’s relatively high market cap and Return on Equity indicates that it is a profitable and established company, which is well positioned to grow in the future.
Summary
Quest Resource Holding Corporation (QRHC) reported a decrease in total revenue for the third quarter of fiscal 2023, with earnings of USD 70.4 million, a 4.0% drop year-on-year. This is indicative of a weaker performance and could be a warning sign for investors, as the company may not be able to sustain profit growth in the coming quarters. QRHC will need to devise strategies to increase revenue and improve efficiency if it wants to keep its investors happy.
