Quest Resource Holding Stock Beneish M Score

QRHC Stock  USD 6.98  0.03  0.43%   
This module uses fundamental data of Quest Resource to approximate the value of its Beneish M Score. Quest Resource M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Quest Resource Piotroski F Score and Quest Resource Altman Z Score analysis.
  
At present, Quest Resource's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 2.9 M, whereas Short and Long Term Debt is forecasted to decline to about 990.8 K. At present, Quest Resource's Average Payables is projected to increase significantly based on the last few years of reporting. The current year's ROIC is expected to grow to 0.02, whereas Price To Sales Ratio is forecasted to decline to 0.49.
At this time, it appears that Quest Resource Holding is a possible manipulator. The earnings manipulation may begin if Quest Resource's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Quest Resource executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Quest Resource's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.06
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.5

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Quest Resource Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Quest Resource's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables61.1 M58.1 M
Sufficiently Up
Slightly volatile
Total Revenue302.8 M288.4 M
Sufficiently Up
Slightly volatile
Total Assets186 M177.1 M
Sufficiently Up
Slightly volatile
Total Current Assets63.6 M60.6 M
Sufficiently Up
Slightly volatile
Non Current Assets Total72.5 M116.5 M
Way Down
Slightly volatile
Property Plant Equipment7.1 M6.8 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization10.4 M9.9 M
Sufficiently Up
Slightly volatile
Selling General Administrative37.8 M36 M
Sufficiently Up
Slightly volatile
Total Current Liabilities47.2 M44.9 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total69.2 M65.9 M
Sufficiently Up
Slightly volatile
Short Term Debt2.9 M1.7 M
Way Up
Very volatile
Long Term Debt67.9 M64.6 M
Sufficiently Up
Slightly volatile
Long Term Investments197.3 K221.9 K
Fairly Down
Slightly volatile
Gross Profit Margin0.260.1736
Way Up
Slightly volatile

Quest Resource Holding Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Quest Resource's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Quest Resource in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Quest Resource's degree of accounting gimmicks and manipulations.

About Quest Resource Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

10.45 Million

At present, Quest Resource's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Quest Resource Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Quest Resource. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables13.9M17.4M39.9M45.9M58.1M61.1M
Total Revenue99.0M98.7M155.7M284.0M288.4M302.8M
Total Assets80.7M102.2M175.7M181.5M177.1M186.0M
Total Current Assets18.4M26.0M50.3M57.8M60.6M63.6M
Net Debt1.1M8.1M55.3M62.2M67.2M70.6M
Short Term Debt627.9K624K1.3M1.6M1.7M2.9M
Long Term Debt4.5M14.9M62.4M70.6M64.6M67.9M
Operating Income595K2.2M4.6M1.4M2.8M3.0M
Investments(301.3K)(506.1K)(16.9M)(4.3M)(1.2M)(1.3M)

Quest Resource ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Quest Resource's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Quest Resource's managers, analysts, and investors.
Environmental
Governance
Social

About Quest Resource Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Quest Resource Holding's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Quest Resource using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Quest Resource Holding based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Quest Resource Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Quest Resource's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Quest Resource Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Quest Resource Holding Stock:
Check out Quest Resource Piotroski F Score and Quest Resource Altman Z Score analysis.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Environmental & Facilities Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Quest Resource. If investors know Quest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Quest Resource listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.667
Earnings Share
(0.38)
Revenue Per Share
14.016
Quarterly Revenue Growth
0.033
Return On Assets
0.0146
The market value of Quest Resource Holding is measured differently than its book value, which is the value of Quest that is recorded on the company's balance sheet. Investors also form their own opinion of Quest Resource's value that differs from its market value or its book value, called intrinsic value, which is Quest Resource's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Quest Resource's market value can be influenced by many factors that don't directly affect Quest Resource's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Quest Resource's value and its price as these two are different measures arrived at by different means. Investors typically determine if Quest Resource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Quest Resource's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.