| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.84 | 1939 |
| Intrinsic value (DCF) | 1.78 | -17 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Quest Resource Holding Corporation (NASDAQ: QRHC) is a leading provider of waste management and recycling solutions in the United States, specializing in the reuse, recycling, and disposal of diverse waste streams. The company serves industries such as automotive, retail, hospitality, manufacturing, and construction, offering tailored solutions for motor oil, scrap tires, food waste, plastics, and regulated/non-regulated wastes. With a focus on landfill diversion and sustainability, QRHC helps clients achieve environmental compliance while reducing costs. Its direct sales force and strategic partnerships enable broad market penetration across multiple sectors. Headquartered in The Colony, Texas, QRHC operates in the competitive waste management industry, positioning itself as a niche player with specialized services. The company’s emphasis on circular economy principles aligns with growing regulatory and corporate sustainability demands, making it a relevant player in the Industrials sector.
Quest Resource Holding Corporation presents a high-risk, high-reward opportunity in the waste management sector. Despite its negative net income and operating cash flow, QRHC operates in a growing industry driven by environmental regulations and corporate sustainability initiatives. The company’s niche focus on recycling and waste diversion could benefit from increasing demand for circular economy solutions. However, its high debt load and negative earnings raise concerns about financial stability. Investors should weigh QRHC’s potential for market expansion against its current profitability challenges. The stock’s low beta (0.552) suggests lower volatility compared to the broader market, but its small market cap (~$44M) and lack of dividends may deter conservative investors.
QRHC competes in the fragmented waste management industry by specializing in recycling and waste diversion services, differentiating itself from larger players focused on traditional landfill operations. Its competitive advantage lies in its ability to provide customized solutions for complex waste streams, particularly in automotive, retail, and food service sectors. However, the company faces intense competition from established waste management firms with greater scale, financial resources, and nationwide infrastructure. QRHC’s smaller size limits its ability to compete on price for commoditized services, but its agility and niche expertise allow it to capture high-margin opportunities in specialized recycling. The lack of significant profitability or positive cash flow weakens its competitive positioning against financially stronger rivals. To sustain growth, QRHC must expand its service offerings, improve operational efficiency, and potentially pursue strategic partnerships or acquisitions.