QuinStreet, Inc. Fundamental Analysis (NASDAQ: QNST)
QuinStreet, Inc. Fundamental Analysis (NASDAQ: QNST)
QuinStreet, Inc. (NASDAQ: QNST) shows strong financial fundamentals with a PE ratio of 14.61, profit margin of 6.28%, and ROE of 27.66%. The company generates $1.3B in annual revenue with strong year-over-year growth of 78.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze QNST's fundamental strength across five key dimensions:
Efficiency Score
ExcellentQNST demonstrates superior asset utilization.
Valuation Score
ExcellentQNST trades at attractive valuation levels.
Growth Score
ModerateQNST shows steady but slowing expansion.
Financial Health Score
ExcellentQNST maintains a strong and stable balance sheet.
Profitability Score
ModerateQNST maintains healthy but balanced margins.
Key Financial Metrics
Is QNST Expensive or Cheap?
P/E Ratio
QNST trades at 14.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, QNST's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values QuinStreet, Inc. at 3.67 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.25 times EBITDA. This signals the market has high growth expectations.
How Well Does QNST Make Money?
Net Profit Margin
For every $100 in sales, QuinStreet, Inc. keeps $6.28 as profit after all expenses.
Operating Margin
Core operations generate 2.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.66 in profit for every $100 of shareholder equity.
ROA
QuinStreet, Inc. generates $11.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
QuinStreet, Inc. produces operating cash flow of $131.54M, showing steady but balanced cash generation.
Free Cash Flow
QuinStreet, Inc. produces free cash flow of $128.13M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.23 in free cash annually.
FCF Yield
QNST converts 10.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How QNST Stacks Against Its Sector Peers
| Metric | QNST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.61 | 19.53 | Better (Cheaper) |
| ROE | 27.66% | 597.00% | Weak |
| Net Margin | 6.28% | 492.00% | Weak |
| Debt/Equity | 0.23 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.22 | 1.89 | Neutral |
| ROA | 11.26% | 310.00% | Weak |
QNST outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews QuinStreet, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.51%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-76.28%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
62.86%
Industry Style: Growth, Technology, Streaming
High Growth