2023-03-29 03:26:45 ET
Summary
- Quest Resource Holding is a waste manager. The company specializes in recycling and landfill deviation. It has a light-asset business model partnering with smaller local operators.
- The company's current management has been very good at reducing expenses and increasing margins, even while revenues were falling.
- However, the company also took substantial debt to pursue acquisitions, and now that debt looms over it as a high cost and risk.
- Taking different approaches to QRHC's valuation, I find that the company's shares are not discounted enough to accommodate the risk of debt.
For further details see:
Quest Resource Holding's Debt Is Dragging The Company's Performance