Q.E.P. Co., Inc.
Q.E.P. Co., Inc. Fundamental Analysis
Q.E.P. Co., Inc. (QEPC) shows moderate financial fundamentals with a PE ratio of 10.00, profit margin of 6.44%, and ROE of 17.43%. The company generates $0.2B in annual revenue with weak year-over-year growth of -3.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze QEPC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentQEPC demonstrates superior asset utilization.
Valuation Score
ExcellentQEPC trades at attractive valuation levels.
Growth Score
WeakQEPC faces weak or negative growth trends.
Financial Health Score
ExcellentQEPC maintains a strong and stable balance sheet.
Profitability Score
ModerateQEPC maintains healthy but balanced margins.
Key Financial Metrics
Is QEPC Expensive or Cheap?
P/E Ratio
QEPC trades at 10.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, QEPC's PEG of -1.51 indicates potential undervaluation.
Price to Book
The market values Q.E.P. Co., Inc. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.79 times EBITDA. This is generally considered low.
How Well Does QEPC Make Money?
Net Profit Margin
For every $100 in sales, Q.E.P. Co., Inc. keeps $6.44 as profit after all expenses.
Operating Margin
Core operations generate 7.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.43 in profit for every $100 of shareholder equity.
ROA
Q.E.P. Co., Inc. generates $10.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Q.E.P. Co., Inc. generates limited operating cash flow of $12.13M, signaling weaker underlying cash strength.
Free Cash Flow
Q.E.P. Co., Inc. produces free cash flow of $8.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.71 in free cash annually.
FCF Yield
QEPC converts 5.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How QEPC Stacks Against Its Sector Peers
| Metric | QEPC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.00 | 26.71 | Better (Cheaper) |
| ROE | 17.43% | 1270.00% | Weak |
| Net Margin | 6.44% | -41697.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 3.40 | 10.13 | Strong Liquidity |
| ROA | 10.98% | -1511097.00% (disorted) | Strong |
QEPC outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Q.E.P. Co., Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-37.50%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
235.16%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
54.68%
Industry Style: Cyclical, Value, Infrastructure
High Growth