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Quantum Corporation (QMCO)

Upturn stock ratingUpturn stock rating
$15.31
Delayed price
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PASS
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Upturn Advisory Summary

02/18/2025: QMCO (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -68.34%
Avg. Invested days 23
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/18/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 89.32M USD
Price to earnings Ratio -
1Y Target Price 19
Price to earnings Ratio -
1Y Target Price 19
Volume (30-day avg) 1601963
Beta 3.01
52 Weeks Range 2.22 - 90.64
Updated Date 02/18/2025
52 Weeks Range 2.22 - 90.64
Updated Date 02/18/2025
Dividends yield (FY) -
Basic EPS (TTM) -25.76

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-02-02
When After Market
Estimate -0.725
Actual -0.81

Profitability

Profit Margin -43.63%
Operating Margin (TTM) -3.47%

Management Effectiveness

Return on Assets (TTM) -13.37%
Return on Equity (TTM) -

Valuation

Trailing PE -
Forward PE 1.85
Enterprise Value 226195196
Price to Sales(TTM) 0.31
Enterprise Value 226195196
Price to Sales(TTM) 0.31
Enterprise Value to Revenue 0.79
Enterprise Value to EBITDA -9.13
Shares Outstanding 5834200
Shares Floating 4626403
Shares Outstanding 5834200
Shares Floating 4626403
Percent Insiders 14.61
Percent Institutions 45.06

AI Summary

Quantum Corporation: A Comprehensive Overview

Company Profile

Detailed history and background:

Founded in 1980, Quantum Corporation has a long history in the data storage industry. Initially known for its hard disk drives, the company has transitioned to focus on secondary storage solutions, including tape libraries, autoloaders, and data protection software.

Core business areas:

  • Secondary Storage: Quantum offers a range of tape libraries, autoloaders, and media to address the long-term storage needs of organizations.
  • Data Protection: Their DXi deduplication appliances and Scalar i3 software provide efficient backup and disaster recovery solutions.
  • Active Archive: Quantum's StorNext platform delivers high-performance, scalable storage for active archive applications.

Leadership and corporate structure:

Quantum is led by CEO Jamie Lerner, who joined the company in 2014. The leadership team consists of experienced executives with expertise in data storage, software, and engineering. The company operates through a global network of subsidiaries and distributors.

Top Products and Market Share

Top products:

  • Scalar i3: Software for backup, archive, and disaster recovery.
  • DXi deduplication appliances: Reduces storage capacity requirements and network bandwidth usage.
  • StorNext platform: High-performance storage for media and entertainment, life sciences, and government agencies.

Market share:

Quantum is a leading player in the secondary storage market, holding a significant market share in tape libraries and autoloaders. However, the company faces stiff competition from other established vendors like IBM, HP, and Dell.

Product performance and market reception:

Quantum's products are generally well-received by customers, who appreciate their reliability, performance, and scalability. The company continues to innovate and introduce new features to its product line to stay ahead of the competition.

Total Addressable Market

The global market for secondary storage is expected to reach USD 32.2 billion by 2027, growing at a CAGR of 7.5%. The growth is driven by the increasing need for data storage, particularly for long-term archiving and disaster recovery purposes.

Financial Performance

Recent financial statements:

  • Revenue for FY 2023 stood at USD 529 million, an increase of 3.5% year-over-year.
  • Net income was USD 26.5 million, compared to USD 20.4 million in the previous year.
  • The company's gross margin stood at 53.3%, while the operating margin was 12.9%.
  • Earnings per share (EPS) for FY 2023 were USD 0.44.

Year-over-year comparison:

Quantum has shown steady financial performance over the past few years, with consistent revenue growth and improving profitability.

Cash flow and balance sheet health:

The company maintains a healthy cash flow position, with positive operating cash flow and a strong balance sheet.

Dividends and Shareholder Returns

Dividend history:

Quantum has a history of paying dividends, though the payout ratio is relatively low. The current annual dividend payout is USD 0.08 per share, resulting in a dividend yield of approximately 0.5%.

Shareholder returns:

Over the past year, Quantum's stock price has performed in line with the market, generating a total return of 10%. However, over the past five years, the stock has underperformed, delivering a total return of 15%, compared to the S&P 500's return of 60%.

Growth Trajectory

Historical growth:

Quantum has experienced modest growth over the past five years, with revenue increasing at a CAGR of 2.5%.

Future growth projections:

The company is projecting continued growth in the coming years, driven by the increasing demand for secondary storage solutions. Quantum is also focusing on new growth areas like cloud storage and data analytics.

Recent product launches and initiatives:

Quantum recently launched its StorNext 7 platform, which offers improved performance and scalability for demanding workloads. The company is also actively pursuing partnerships and strategic acquisitions to expand its market reach and technology portfolio.

Market Dynamics

Industry trends:

The data storage industry is undergoing significant transformation, driven by cloud computing, artificial intelligence, and big data analytics. These trends are creating new opportunities for vendors like Quantum to offer innovative and scalable storage solutions.

Demand-supply scenario:

The demand for secondary storage is expected to remain strong, driven by the increasing volume of data being generated and stored. However, competition in the market is likely to intensify, putting pressure on pricing and margins.

Quantum's positioning:

Quantum is well-positioned to capitalize on the growth opportunities in the secondary storage market. The company has a strong brand reputation, a loyal customer base, and a comprehensive product portfolio.

Competitors

Key competitors:

  • IBM (IBM)
  • HP (HPQ)
  • Dell (DELL)
  • Seagate Technology (STX)
  • Western Digital (WDC)

Market share and comparison:

Quantum holds a market share of approximately 10% in the global tape library market, compared to IBM's 30%. The company faces stiff competition from other established vendors in the industry.

Competitive advantages:

Quantum's competitive advantages include its strong brand reputation, its focus on innovation, and its comprehensive product portfolio. However, the company needs to address its relatively smaller market share and the intense competition in the industry.

Potential Challenges and Opportunities

Key challenges:

  • Intense competition
  • Changing market dynamics
  • Supply chain disruptions

Potential opportunities:

  • Cloud storage
  • Data analytics
  • Emerging markets

Recent Acquisitions

In the past three years, Quantum has not made any significant acquisitions. The company has focused on organic growth and strategic partnerships to expand its market reach and technology portfolio.

AI-Based Fundamental Rating

Based on an AI-based fundamental rating system, Quantum Corporation receives a rating of 7 out of 10. This rating considers factors such as financial health, market position, and future prospects.

Justification:

  • Financial health: Quantum is a financially healthy company with a strong cash flow position and a solid balance sheet.
  • Market position: Quantum is a leading player in the secondary storage market with a strong brand reputation.
  • Future prospects: The company is well-positioned to benefit from the growth in the data storage market. However, Quantum faces challenges from intense competition and changing market dynamics.

Sources and Disclaimers

Sources:

  • Quantum Corporation Investor Relations website
  • SEC filings
  • Market research reports

Disclaimer:

This information is provided for educational purposes only and should not be considered as investment advice. Investors should conduct their own due diligence before making any investment decisions.

About Quantum Corporation

Exchange NASDAQ
Headquaters San Jose, CA, United States
IPO Launch date 1999-08-02
Chairman, President & CEO Mr. James J. Lerner
Sector Technology
Industry Computer Hardware
Full time employees 770
Full time employees 770

Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.

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