Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Quest Resource Holding Corporation (NASDAQ:QRHC) due to its excellent fundamentals in more than one area. QRHC is a company with robust financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Quest Resource Holding here.
Flawless balance sheet with reasonable growth potential
Investors in search for stocks with room to flourish should look no further than QRHC, with its expected earnings growth of 50%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 51% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. QRHC’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that QRHC manages its cash and cost levels well, which is an important determinant of the company’s health. QRHC appears to have made good use of debt, producing operating cash levels of 0.43x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Quest Resource Holding, I’ve put together three fundamental factors you should further research:
- Historical Performance: What has QRHC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is QRHC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether QRHC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of QRHC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.