S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
In a challenging market environment, Quest Resource (NASDAQ:QRHC) Holding Corporation (QRHC) stock has touched a 52-week low, dipping to $5.77. According to InvestingPro data, the company operates with a current ratio of 1.52, indicating sufficient liquidity despite its significant debt burden of $74.46 million. The company, which specializes in environmental reuse, recycling, and disposal services, has faced headwinds that have pressured its stock price over the past year, culminating in a significant downturn from its previous positions. Investors have witnessed a 1-year change in the stock's value, with QRHC experiencing a decline of -19.86%, reflecting broader market trends and sector-specific obstacles. Based on InvestingPro analysis, the stock appears undervalued at current levels, with analysts maintaining a strong buy consensus. This latest price level serves as a critical marker for the stock, setting a new low threshold within the past year and potentially signaling a cautious outlook among investors. While the company faces near-term challenges, InvestingPro analysis reveals 13 additional investment tips and comprehensive metrics available in the Pro Research Report, helping investors make more informed decisions about QRHC's future prospects.
In other recent news, Quest Resource Holding Corporation has completed a refinancing process with Monroe Capital (NASDAQ:MRCC) Management Advisors, LLC and PNC Bank, aimed at reducing the company’s long-term cost of capital to support growth. The amended financing agreements include a $54 million term loan with Monroe, with a reduced interest rate, and a revised agreement with PNC Bank to increase the revolver commitment from $35 million to $45 million. These developments are expected to cut approximately $1 million in annual interest expense.
In the latest earnings report, Quest Resource reported a modest revenue increase of 3.3% year-over-year to $72.8 million, largely driven by the onboarding of seven new clients. However, it also reported a decline in gross profit by 5.9%, attributed to a shift in revenue mix, higher service costs, and unexpected billing credits. Despite these challenges, the company anticipates over $20 million in net incremental revenue in 2025, driven by new client growth and technological enhancements.
These recent developments underscore Quest Resource's commitment to navigating market challenges and focusing on client growth and technological advancements. The company continues to onboard new clients and is keen on enhancing its technology platform and client service capabilities. The details of the refinanced terms have been filed in a Current Report on Form 8-K with the U.S. Securities and Exchange Commission.
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