John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

QuinStreet Is An Attractive Way To Play The Growing Demand For Pay-for-performance Marketing

Key takeaways

  • QuinStreet (NASDAQ:QNST) trades at a mid single-digit EBITDA multiple due to the high profile scrutiny of the for-profit education industry and increasing competition in the financial services vertical.
  • However the current valuation ignores its proven ability to survive (and thrive) despite many challenges over different operating environments given its dominant market position and multiple competitive advantages.
  • The strong balance sheet, significant insider/institutional ownership and 9.5% free cash flow yield limit downside risk while long-term margin expansion and entry into new verticals provides significant growth potential.

Company overview

QNST is an online performance marketing company that delivers targeted and measurable results (e.g. qualified leads or clicks) to clients primarily in the education and financial services industries as...

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