QUINSTREET INC (QNST) Stock Fundamental Analysis
NASDAQ:QNST - Nasdaq - US74874Q1004 - Common Stock - Currency: USD
QNST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. The financial health of QNST is average, but there are quite some concerns on its profitability. QNST is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
QNST had positive earnings in the past year.
QNST had a positive operating cash flow in the past year.
In multiple years QNST reported negative net income over the last 5 years.
In the past 5 years QNST always reported a positive cash flow from operatings.
1.2 Ratios
QNST has a Return On Assets of -0.16%. This is comparable to the rest of the industry: QNST outperforms 52.86% of its industry peers.
The Return On Equity of QNST (-0.28%) is comparable to the rest of the industry.
QNST has a Return On Invested Capital (0.27%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.28% | ||
| ROIC | 0.27% |
ROA(3y)-10.06%
ROA(5y)-3.98%
ROE(3y)-15.42%
ROE(5y)-6.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
QNST has a Operating Margin (0.09%) which is in line with its industry peers.
QNST's Gross Margin of 9.75% is on the low side compared to the rest of the industry. QNST is outperformed by 92.86% of its industry peers.
QNST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.09% | ||
| PM (TTM) | N/A | ||
| GM | 9.75% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.81%
GM growth 5Y-11.04%
2. Health
2.1 Basic Checks
QNST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
QNST has more shares outstanding than it did 1 year ago.
QNST has more shares outstanding than it did 5 years ago.
There is no outstanding debt for QNST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.17 indicates that QNST is not in any danger for bankruptcy at the moment.
The Altman-Z score of QNST (5.17) is better than 78.57% of its industry peers.
There is no outstanding debt for QNST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.17 |
ROIC/WACC0.03
WACC9.31%
2.3 Liquidity
QNST has a Current Ratio of 1.46. This is a normal value and indicates that QNST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.46, QNST is doing worse than 68.57% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that QNST should not have too much problems paying its short term obligations.
QNST has a worse Quick ratio (1.46) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 3800.00% over the past year.
The earnings per share for QNST have been decreasing by -26.62% on average. This is quite bad
QNST shows a strong growth in Revenue. In the last year, the Revenue has grown by 88.81%.
Measured over the past years, QNST shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
EPS 1Y (TTM)3800%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%250%
Revenue 1Y (TTM)88.81%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%60.06%
3.2 Future
Based on estimates for the next years, QNST will show a very strong growth in Earnings Per Share. The EPS will grow by 129.17% on average per year.
QNST is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.42% yearly.
EPS Next Y790.8%
EPS Next 2Y228.56%
EPS Next 3Y129.17%
EPS Next 5YN/A
Revenue Next Year80.73%
Revenue Next 2Y39.67%
Revenue Next 3Y29.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.92 indicates a rather expensive valuation of QNST.
Compared to the rest of the industry, the Price/Earnings ratio of QNST indicates a somewhat cheap valuation: QNST is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of QNST to the average of the S&P500 Index (27.19), we can say QNST is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.34, QNST is valued correctly.
QNST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QNST is cheaper than 72.86% of the companies in the same industry.
QNST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
QNST's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QNST indicates a somewhat cheap valuation: QNST is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 30.69 |
4.3 Compensation for Growth
QNST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QNST's earnings are expected to grow with 129.17% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y228.56%
EPS Next 3Y129.17%
5. Dividend
5.1 Amount
QNST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.48
-0.08 (-0.51%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.38%
Inst Owner Change0%
Ins Owners4.06%
Ins Owner Change-4.12%
Market Cap881.59M
Analysts85
Price Target24.99 (61.43%)
Short Float %2.98%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.85%
Min EPS beat(2)0.78%
Max EPS beat(2)0.92%
EPS beat(4)4
Avg EPS beat(4)13.72%
Min EPS beat(4)0.78%
Max EPS beat(4)43.79%
EPS beat(8)7
Avg EPS beat(8)17.44%
EPS beat(12)10
Avg EPS beat(12)23.33%
EPS beat(16)12
Avg EPS beat(16)16.13%
Revenue beat(2)1
Avg Revenue beat(2)6.71%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)15.57%
Revenue beat(4)3
Avg Revenue beat(4)10.69%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)25.01%
Revenue beat(8)4
Avg Revenue beat(8)5.45%
Revenue beat(12)8
Avg Revenue beat(12)4.71%
Revenue beat(16)10
Avg Revenue beat(16)3.14%
PT rev (1m)0%
PT rev (3m)-21.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 14.34 | ||
| P/S | 0.86 | ||
| P/FCF | 14.79 | ||
| P/OCF | 12.31 | ||
| P/B | 3.74 | ||
| P/tB | 11.07 | ||
| EV/EBITDA | 30.69 |
EPS(TTM)0.74
EY4.78%
EPS(NY)1.08
Fwd EY6.97%
FCF(TTM)1.05
FCFY6.76%
OCF(TTM)1.26
OCFY8.13%
SpS18.09
BVpS4.13
TBVpS1.4
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.28% | ||
| ROCE | 0.34% | ||
| ROIC | 0.27% | ||
| ROICexc | 0.39% | ||
| ROICexgc | 3.03% | ||
| OM | 0.09% | ||
| PM (TTM) | N/A | ||
| GM | 9.75% | ||
| FCFM | 5.79% |
ROA(3y)-10.06%
ROA(5y)-3.98%
ROE(3y)-15.42%
ROE(5y)-6.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-14.81%
GM growth 5Y-11.04%
F-Score7
Asset Turnover2.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.52% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 273.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 5.17 |
F-Score7
WACC9.31%
ROIC/WACC0.03
Cap/Depr(3y)64.15%
Cap/Depr(5y)52.19%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3800%
EPS 3Y-46.69%
EPS 5Y-26.62%
EPS Q2Q%250%
EPS Next Y790.8%
EPS Next 2Y228.56%
EPS Next 3Y129.17%
EPS Next 5YN/A
Revenue 1Y (TTM)88.81%
Revenue growth 3Y1.98%
Revenue growth 5Y6.15%
Sales Q2Q%60.06%
Revenue Next Year80.73%
Revenue Next 2Y39.67%
Revenue Next 3Y29.42%
Revenue Next 5YN/A
EBIT growth 1Y102.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year515.23%
EBIT Next 3Y100.12%
EBIT Next 5YN/A
FCF growth 1Y660.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4492.24%
OCF growth 3Y-38.04%
OCF growth 5Y-20.53%