NasdaqGS:QNST

Stock Analysis Report

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Executive Summary

QuinStreet, Inc., an Internet performance marketing company, provides customer acquisition services for its clients in the United States and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has QuinStreet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QNST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

QNST

5.1%

US Interactive Media and Services

2.3%

US Market


1 Year Return

-35.0%

QNST

25.3%

US Interactive Media and Services

6.7%

US Market

Return vs Industry: QNST underperformed the US Interactive Media and Services industry which returned 25.3% over the past year.

Return vs Market: QNST underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

QNSTIndustryMarket
7 Day-1.8%5.1%2.3%
30 Day-1.8%8.7%6.0%
90 Day15.4%32.4%18.9%
1 Year-35.0%-35.0%25.4%25.3%9.0%6.7%
3 Year158.1%158.1%46.9%46.8%36.6%27.7%
5 Year61.3%61.3%108.6%108.1%64.2%46.1%

Price Volatility Vs. Market

How volatile is QuinStreet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is QuinStreet undervalued compared to its fair value and its price relative to the market?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QNST ($10.39) is trading below our estimate of fair value ($13.75)

Significantly Below Fair Value: QNST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QNST is good value based on its PE Ratio (26.5x) compared to the US Interactive Media and Services industry average (31.5x).

PE vs Market: QNST is poor value based on its PE Ratio (26.5x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: QNST is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: QNST's PB Ratio (2.2x) is in line with the US Interactive Media and Services industry average.


Next Steps

Future Growth

How is QuinStreet forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QNST's forecast earnings growth (8.8% per year) is above the savings rate (2.2%).

Earnings vs Market: QNST's earnings (8.8% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: QNST's earnings are forecast to grow, but not significantly.

Revenue vs Market: QNST's revenue (3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: QNST's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QNST's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has QuinStreet performed over the past 5 years?

72.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QNST has a large one-off gain of $12.0M impacting its March 31 2020 financial results.

Growing Profit Margin: QNST's current net profit margins (4%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: QNST has become profitable over the past 5 years, growing earnings by 72.2% per year.

Accelerating Growth: QNST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QNST had negative earnings growth (-69%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-37.3%).


Return on Equity

High ROE: QNST's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is QuinStreet's financial position?


Financial Position Analysis

Short Term Liabilities: QNST's short term assets ($179.3M) exceed its short term liabilities ($90.9M).

Long Term Liabilities: QNST's short term assets ($179.3M) exceed its long term liabilities ($20.4M).


Debt to Equity History and Analysis

Debt Level: QNST is debt free.

Reducing Debt: QNST has no debt compared to 5 years ago when its debt to equity ratio was 46.3%.

Debt Coverage: QNST has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: QNST has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is QuinStreet current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate QNST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate QNST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if QNST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if QNST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QNST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Doug Valenti (60yo)

21yrs

Tenure

US$3,392,750

Compensation

Mr. Douglas Valenti, also known as Doug, founded QuinStreet, Inc. in 1999 and has been its Chief Executive Officer since July 1999. Mr. Valenti served as the President of QuinStreet Inc. Prior to QuinStree ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.39M) is above average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Doug's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Valenti
Chairman21yrsUS$3.39m6.61% $35.7m
Gregory Wong
Senior VP & CFO6.83yrsUS$1.53m0.21% $1.2m
Nina Bhanap
CTO and President of Product & Technology11yrsUS$1.55mno data
Brett Moses
Senior VP & Category Head of Financial Services5yrsUS$1.15m0.031% $166.2k
Andreja Stevanovic
Senior VP & Category Head of Financial Services5yrsUS$1.18m0.031% $166.2k
Erica Abrams
Investor Relations Contactno datano datano data
Martin Collins
Chief Legal & Privacy Officer6.25yrsUS$563.33kno data
Timothy Stevens
Senior Vice President3.58yrsUS$1.46mno data
Peter Brooks
Senior Vice President8yrsUS$543.98kno data
William Bradley
4.5yrsUS$150.24kno data

6.3yrs

Average Tenure

47yo

Average Age

Experienced Management: QNST's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Valenti
Chairman21yrsUS$3.39m6.61% $35.7m
James Simons
Independent Director21yrsUS$158.99k0.082% $442.4k
Gregory Sands
Independent Director21yrsUS$169.99k1.08% $5.8m
Andrew Sheehan
Independent Director3.42yrsUS$153.49k0.051% $275.4k
David Pauldine
Independent Director5.75yrsUS$159.99k0.17% $939.3k
Stuart Huizinga
Independent Director5.25yrsUS$179.99k0.026% $142.9k
Matthew Glickman
Independent Director3.25yrsUS$164.49kno data
Robin Josephs
Independent Director7.17yrsUS$187.49k0.13% $688.6k

6.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: QNST's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: QNST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

QuinStreet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QuinStreet, Inc.
  • Ticker: QNST
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$539.787m
  • Shares outstanding: 51.95m
  • Website: https://quinstreet.com

Number of Employees


Location

  • QuinStreet, Inc.
  • 950 Tower Lane
  • 6th Floor
  • Foster City
  • California
  • 94404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QNSTNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDFeb 2010
5Q8DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2010

Biography

QuinStreet, Inc., an Internet performance marketing company, provides customer acquisition services for its clients in the United States and internationally. It offers online marketing services to its clients in the form of qualified clicks, leads, inquiries, calls, applications, customers, display advertisements, or impressions through its Websites or third-party publishers. The company provides its services in various verticals, such as financial services, education, home services, and business-to-business technology. QuinStreet, Inc. was founded in 1999 and is headquartered in Foster City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 06:54
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.