To The Moon

Earnings Calendar (30Jun25)

Let us look at Quantum Corporation’s recent performance. This is the description of the business.

From investing.com, the analysts’ sentiment is neutral with a price target of $19.00. This suggests an upside of 110.18%. The technical analysis recommends a rating of “Strong Sell”.

Observations:

• Revenue has fallen from $553 million in 2015 to $312 million in 2024.

• Gross profit has fallen from $245 million in 2015 to $125 million in 2024.

• Operating profit started at $16 million in 2015 but ended in 2024 with a loss of $26 million. The company has been making losses since 2022.

• Earnings per share (EPS) started at $10.22 in 2015 to -$8.60 in 2024.

• With a -0.5 P/E ratio, the business continues to operate at a loss.

(The next section is made with help from Grok).

Over the past 10 years, Quantum Corporation has faced significant challenges, with revenue declining at a -7.1% CAGR and operating profits remaining negative, reflecting a shrinking market share in traditional data storage. EPS has worsened to -$8.60 in 2024, and the company does not pay dividends, focusing on survival rather than shareholder returns. The negative P/E ratio (-0.5) and poor ROA (-14.2%), ROE (19.5%), and ROIC (14.3%) indicate financial distress, though a low valuation (P/B -0.3, P/S 0.2) might attract value investors. Negative FCF and moderate leverage limit flexibility, but the stable gross margin (40% in 2024) suggests potential in niche areas like tape and software-defined storage. Quantum’s competitive advantages include its specialised storage solutions for archival and cloud backup, but its survival depends on adapting to market shifts, such as increased demand for cloud-native solutions, as of June 2025.

The forecast for the coming earnings’ EPS and revenue is -$0.01 and $93.1 million.

Given the above information, I prefer to avoid this stock even though analysts suggest an upside for the price.

@TigerStars

$QUANTUM CORP(QMCO)$