Quest Resource Holding Corporation (QRHC)

Quest Resource Holding Corporation (QRHC) Industrial Operations Profile

Quest Resource Holding Corporation offers comprehensive waste management and recycling solutions across the United States, focusing on diverse waste streams from retail, automotive, and manufacturing sectors. The company provides disposal, recycling, and landfill diversion services, leveraging strategic partnerships to serve a broad range of industries and clients.

What Is the Investment Thesis for QRHC?

Quest Resource Holding Corporation presents a focused play on the waste management and recycling sector, leveraging its comprehensive service offerings and diverse customer base. With a market capitalization of $26.34M, the company's growth potential is tied to its ability to expand its service offerings and penetrate new markets. Key value drivers include increasing regulatory focus on waste diversion and recycling, which could drive demand for Quest's services. The company's negative profit margin of -3.0% highlights the need for improved operational efficiency and cost management. A beta of 0.25 suggests low volatility relative to the market. Investors should monitor revenue growth, gross margin (currently at 14.8%), and progress towards profitability as key indicators of the company's success.

Based on FMP financials and quantitative analysis

QRHC Key Highlights

• Market capitalization of $26.34M indicates a small-cap company with potential for growth.
• Gross margin of 14.8% reflects the profitability of Quest's core services.
• Profit margin of -3.0% highlights the need for improved operational efficiency.
• Beta of 0.25 suggests lower volatility compared to the broader market.
• Focus on diverse waste streams from retail, automotive, and manufacturing sectors provides a stable revenue base.

Who Are QRHC's Competitors?

QRHC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are QRHC's Key Strengths?

• Comprehensive waste management solutions.
• Diverse customer base across multiple industries.
• Established network of recycling and disposal facilities.
• Expertise in handling various waste streams.

What Are QRHC's Weaknesses?

• Negative profit margin.
• Small market capitalization.
• Limited brand recognition compared to larger competitors.
• Dependence on strategic partnerships for customer acquisition.

What Could Drive QRHC Stock Higher?

• Increasing environmental regulations driving demand for waste diversion and recycling services.
• Growing emphasis on sustainability among businesses and consumers.
• Potential strategic acquisitions to expand service offerings and geographic reach.
• Technological innovation to improve operational efficiency and enhance service offerings.

What Are the Key Risks for QRHC?

• Financial-distress signal — its Altman Z-Score of 0.58 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-17.8%) — the business is not currently generating profit on shareholder capital.
• Fluctuations in commodity prices for recycled materials.
• Increasing competition from larger waste management companies.
• Changes in environmental regulations.
• Economic downturns affecting waste generation.
• Negative profit margin impacting financial performance.

What Are the Growth Opportunities for QRHC?

• Expansion of Service Offerings: Quest can expand its service offerings to include more specialized waste streams and recycling processes. This could involve investing in new technologies and equipment to handle emerging waste types, such as electronic waste or specialized industrial byproducts. By broadening its capabilities, Quest can attract new customers and increase its market share. Timeline: Ongoing.
• Penetration of New Markets: Quest has the opportunity to penetrate new geographic markets and industries. This could involve expanding its sales force and marketing efforts to target regions with growing waste management needs. Additionally, Quest can explore partnerships with industry associations and trade groups to reach new customer segments. Timeline: Ongoing.
• Strategic Acquisitions: Quest can pursue strategic acquisitions to expand its service offerings and geographic reach. This could involve acquiring smaller waste management companies with complementary capabilities or established customer bases. Acquisitions can provide Quest with access to new technologies, markets, and talent, accelerating its growth. Timeline: Ongoing.
• Technological Innovation: Investing in technology can improve operational efficiency and enhance service offerings. This could involve implementing advanced data analytics to optimize waste collection routes, improve recycling processes, and track waste streams more effectively. Technological innovation can also help Quest differentiate itself from competitors and attract environmentally conscious customers. Timeline: Ongoing.
• Strengthening Strategic Partnerships: Quest can strengthen its existing strategic partnerships and forge new alliances to expand its reach and service capabilities. This could involve collaborating with waste haulers, recycling facilities, and other industry players to create a more integrated and comprehensive waste management solution. Strategic partnerships can provide Quest with access to new resources, expertise, and customers. Timeline: Ongoing.

What Opportunities Does QRHC Have?

• Expansion of service offerings to include specialized waste streams.
• Penetration of new geographic markets and industries.
• Strategic acquisitions of smaller waste management companies.
• Technological innovation to improve operational efficiency.

What Threats Does QRHC Face?

• Increasing competition from larger waste management companies.
• Fluctuations in commodity prices for recycled materials.
• Changes in environmental regulations.
• Economic downturns affecting waste generation.

What Are QRHC's Competitive Advantages?

• Established network of recycling and disposal facilities.
• Long-standing relationships with key customers in various industries.
• Expertise in managing diverse waste streams and recyclables.
• Focus on providing customized waste management solutions.

What Does QRHC Do?

Quest Resource Holding Corporation, established in 2002 and headquartered in The Colony, Texas, specializes in providing solutions for the reuse, recycling, and disposal of various waste streams and recyclables across the United States. Originally incorporated as Infinity Resources Holdings Corp., the company rebranded to Quest Resource Holding Corporation in October 2013, marking a strategic shift towards comprehensive waste management solutions. The company offers a broad array of services, including the disposal and recycling of motor oil, automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, and construction debris. Additionally, Quest handles regulated and non-regulated solid, liquid, and gas wastes, offering santifreeze, windshield washer fluid, and dumpster and compacting equipment. Quest's services cater to a diverse clientele, including big box stores, grocers, automotive maintenance providers, quick lube services, dealerships, collision repair shops, transportation and logistics companies, internal fleet operators, manufacturing plants, multi-family and commercial properties, restaurant chains, food operations, and construction and demolition projects. The company markets its services through a direct sales force and strategic partnerships, targeting the automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries.

What Products and Services Does QRHC Offer?

• Provides disposal and recycling services for motor oil and automotive lubricants.
• Offers recycling solutions for oil filters, scrap tires, and oily water.
• Manages goods destruction and food waste recycling.
• Handles meat renderings, cooking oil, and grease trap waste disposal.
• Recycles plastics, cardboard, metal, glass, and mixed paper.
• Provides disposal and recycling services for construction debris.
• Manages regulated and non-regulated solid, liquid, and gas wastes.
• Offers landfill diversion services.

How Does QRHC Make Money?

• Generates revenue by providing waste disposal and recycling services to businesses.
• Offers customized waste management solutions tailored to specific industries and customer needs.
• Utilizes a direct sales force and strategic partnerships to acquire customers.
• Focuses on waste streams and recyclables from big box stores, automotive services, and manufacturing plants.

What Industry Does QRHC Operate In?

Quest Resource Holding Corporation operates within the waste management industry, which is experiencing growth driven by increasing environmental regulations and a growing emphasis on sustainability. The industry includes companies providing waste collection, recycling, and disposal services. The competitive landscape includes large national players and smaller regional firms. Quest differentiates itself through its focus on specific waste streams and its ability to provide tailored solutions to diverse industries. The increasing demand for landfill diversion and recycling services positions Quest favorably within this evolving market.

Who Are QRHC's Key Customers?

• Big box stores and grocers.
• Automotive maintenance providers, quick lube services, dealerships, and collision repair shops.
• Transportation and logistics companies and internal fleet operators.
• Manufacturing plants.
• Multi-family and commercial properties.
• Restaurant chains and food operations.
• Construction and demolition projects.

QRHC Valuation & Market Position

With a $26.34M market cap, Quest Resource Holding Corporation sits in the micro-cap segment of the market. Relative to its peer group, QRHC's quantitative score of 33/100 is below the peer average of 62/100.

FY2026 estForward Outlook

Wall Street analysts project Quest Resource Holding Corporation revenue of about $257.3M for fiscal 2026, with EPS near $-0.13.

F-Score 4/9Financial Health

Quest Resource Holding Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.58 places it in the distress zone, a signal of elevated financial risk.

ROE -18%Key Financial Metrics

Return on equity for Quest Resource Holding Corporation stands at -17.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -4.9%, showing how much profit it generates from its asset base. Its free cash flow yield is 34.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.28 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -25.1%, the inverse of the P/E and a quick read on earnings relative to price.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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