Quinstreet, Inc (NASDAQ: QNST)

Sector: Communication Services Industry: Advertising Agencies CIK: 0001117297
Market Cap 635.29 Mn
P/B 2.16
P/E 10.18
P/S 0.57
ROIC (Qtr) 205.54
Div Yield % 0.00
Rev 1y % (Qtr) 1.86
Total Debt (Qtr) 6.38 Mn
Debt/Equity (Qtr) 0.02
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About

Investment thesis

Bull case

  • Strong operating cash flow of 101.23M provides robust 15.87x coverage of total debt 6.38M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 101.23M provides exceptional 351.50x coverage of interest expenses 288000, showing strong debt service capability.
  • Strong tangible asset base of 343.33M provides 53.84x coverage of total debt 6.38M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 101.23M provides 1.62x coverage of SG&A expenses 62.53M, showing efficient operational cost management.
  • Robust free cash flow of 97.98M exceeds capital expenditure of 3.25M by 30.15x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 101.23M barely covers its investment activities of (13.63M), with a coverage ratio of -7.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (13.63M) provide weak support for R&D spending of 33.02M, which is -0.41x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 101.23M shows concerning coverage of stock compensation expenses of 33.06M, with a 3.06 ratio indicating potential earnings quality issues.
  • Operating cash flow of 101.23M provides minimal -2.12x coverage of tax expenses of (47.71M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 101.23M barely covers operating expenses of (39000) with a -2595.69 ratio, suggesting thin operational efficiency margins and limited flexibility.

Consolidation Items Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Advertising Agencies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APP AppLovin Corp 127.41 Bn 45.02 23.08 3.51 Bn
2 OMC Omnicom Group Inc. 14.77 Bn 15.35 1.09 7.07 Bn
3 TTD Trade Desk, Inc. 12.45 Bn 28.38 4.46 0.38 Bn
4 WPP WPP plc 3.86 Bn 7.39 0.20 -
5 QMMM QMMM Holdings Ltd 1.98 Bn -702.35 1,054.15 -
6 MGNI Magnite, Inc. 1.64 Bn 28.22 2.33 0.63 Bn
7 CCO Clear Channel Outdoor Holdings, Inc. 1.41 Bn -238.00 1.35 6.46 Bn
8 ZD Ziff Davis, Inc. 1.31 Bn 11.84 0.90 0.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.10 12.80
EV to Cash from Ops. EV/CFO 5.34 -9.24
EV to Debt EV to Debt 84.83 865.17
EV to EBIT EV/EBIT 36.16 -23.35
EV to EBITDA EV/EBITDA 14.45 -13.82
EV to Free Cash Flow [EV/FCF] EV/FCF 5.52 -15.99
EV to Market Cap EV to Market Cap 0.85 -11.05
EV to Revenue EV/Rev 0.49 29.66
Price to Book Value [P/B] P/B 2.16 18.02
Price to Earnings [P/E] P/E 10.18 -21.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 111.99
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.23
Interest Coverage Int. cover (Qtr) 51.94 -127.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.61 -7,492.41
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 84.94 58.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.50
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 656.59 161.56
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 156.27 -120.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 229.18 -65.24
EBT Growth (1y) % EBT 1y % (Qtr) 219.39 -164.00
EPS Growth (1y) % EPS 1y % (Qtr) 595.45 12.86
FCF Growth (1y) % FCF 1y % (Qtr) 131.26 -627.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.01 -10.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.24 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.60 0.60
Current Ratio Curr Ratio (Qtr) 1.51 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -1.37
Interest Cover Ratio Int Coverage (Qtr) 51.94 -127.87
Times Interest Earned Times Interest Earned (Qtr) 51.94 -127.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.40 -7.55
EBIT Margin % EBIT Margin % (Qtr) 1.35 -208.19
EBT Margin % EBT Margin % (Qtr) 1.33 -119.23
Gross Margin % Gross Margin % (Qtr) 10.00 41.53
Net Profit Margin % Net Margin % (Qtr) 5.60 -119.40