Q2 HOLDINGS INC (QTWO) Stock Fundamental Analysis
USA - NYSE:QTWO - US74736L1098 - Common Stock
71.99 USD
+1.82 (+2.59%)
71.99 USD
0 (0%)
Taking everything into account, QTWO scores 5 out of 10 in our fundamental rating. QTWO was compared to 284 industry peers in the Software industry. QTWO has only an average score on both its financial health and profitability. QTWO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
QTWO had positive earnings in the past year.
QTWO had a positive operating cash flow in the past year.
In the past 5 years QTWO always reported negative net income.
Of the past 5 years QTWO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QTWO (0.35%) is better than 60.56% of its industry peers.
Looking at the Return On Equity, with a value of 0.84%, QTWO is in the better half of the industry, outperforming 63.03% of the companies in the same industry.
The Return On Invested Capital of QTWO (0.60%) is better than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.84% | ||
| ROIC | 0.6% |
ROA(3y)-5.5%
ROA(5y)-6.87%
ROE(3y)-16.01%
ROE(5y)-17.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
QTWO has a better Profit Margin (0.66%) than 61.27% of its industry peers.
Looking at the Operating Margin, with a value of 0.66%, QTWO is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
QTWO has a worse Gross Margin (52.62%) than 65.85% of its industry peers.
QTWO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.66% | ||
| PM (TTM) | 0.66% | ||
| GM | 52.62% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.1%
GM growth 5Y0.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QTWO is destroying value.
Compared to 1 year ago, QTWO has more shares outstanding
QTWO has more shares outstanding than it did 5 years ago.
QTWO has a better debt/assets ratio than last year.
2.2 Solvency
QTWO has an Altman-Z score of 3.11. This indicates that QTWO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of QTWO (3.11) is comparable to the rest of the industry.
There is no outstanding debt for QTWO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.06
WACC10.49%
2.3 Liquidity
QTWO has a Current Ratio of 0.90. This is a bad value and indicates that QTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.90, QTWO is doing worse than 76.06% of the companies in the same industry.
QTWO has a Quick Ratio of 0.90. This is a bad value and indicates that QTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
QTWO has a worse Quick ratio (0.90) than 75.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
QTWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.67%, which is quite impressive.
QTWO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.28% yearly.
QTWO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.50%.
The Revenue has been growing by 17.16% on average over the past years. This is quite good.
EPS 1Y (TTM)66.67%
EPS 3Y72.41%
EPS 5Y33.28%
EPS Q2Q%29.55%
Revenue 1Y (TTM)11.5%
Revenue growth 3Y11.78%
Revenue growth 5Y17.16%
Sales Q2Q%15.24%
3.2 Future
QTWO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.47% yearly.
QTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y39.32%
EPS Next 2Y23.9%
EPS Next 3Y19.47%
EPS Next 5YN/A
Revenue Next Year13.39%
Revenue Next 2Y11.96%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.72, QTWO can be considered very expensive at the moment.
QTWO's Price/Earnings ratio is a bit cheaper when compared to the industry. QTWO is cheaper than 63.38% of the companies in the same industry.
QTWO is valuated rather expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.59 indicates a quite expensive valuation of QTWO.
QTWO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QTWO is cheaper than 62.68% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QTWO to the average of the S&P500 Index (32.68), we can say QTWO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
60.92% of the companies in the same industry are more expensive than QTWO, based on the Enterprise Value to EBITDA ratio.
QTWO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. QTWO is cheaper than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.68 | ||
| EV/EBITDA | 64.16 |
4.3 Compensation for Growth
QTWO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QTWO's earnings are expected to grow with 19.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)0.98
EPS Next 2Y23.9%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
QTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.99
+1.82 (+2.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners106.25%
Inst Owner Change-0.81%
Ins Owners0.5%
Ins Owner Change-1.93%
Market Cap4.50B
Revenue(TTM)696.46M
Net Income(TTM)4.88M
Analysts79.13
Price Target103.52 (43.8%)
Short Float %5%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.13%
Min EPS beat(2)7.29%
Max EPS beat(2)12.97%
EPS beat(4)4
Avg EPS beat(4)13.49%
Min EPS beat(4)7.29%
Max EPS beat(4)23.75%
EPS beat(8)7
Avg EPS beat(8)9.14%
EPS beat(12)10
Avg EPS beat(12)32.79%
EPS beat(16)12
Avg EPS beat(16)27.48%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.35%
Revenue beat(4)0
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.04%
Revenue beat(12)0
Avg Revenue beat(12)-1.44%
Revenue beat(16)0
Avg Revenue beat(16)-1.46%
PT rev (1m)-1.39%
PT rev (3m)1.14%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 28.59 | ||
| P/S | 6.05 | ||
| P/FCF | 29.68 | ||
| P/OCF | 25.19 | ||
| P/B | 7.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 64.16 |
EPS(TTM)2.2
EY3.06%
EPS(NY)2.52
Fwd EY3.5%
FCF(TTM)2.43
FCFY3.37%
OCF(TTM)2.86
OCFY3.97%
SpS11.9
BVpS9.36
TBVpS-0.25
PEG (NY)0.83
PEG (5Y)0.98
Graham Number21.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.84% | ||
| ROCE | 0.76% | ||
| ROIC | 0.6% | ||
| ROICexc | 3.22% | ||
| ROICexgc | N/A | ||
| OM | 0.66% | ||
| PM (TTM) | 0.66% | ||
| GM | 52.62% | ||
| FCFM | 20.39% |
ROA(3y)-5.5%
ROA(5y)-6.87%
ROE(3y)-16.01%
ROE(5y)-17.84%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.1%
GM growth 5Y0.97%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 44.3% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 271.01% | ||
| Profit Quality | 3101.41% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.11 |
F-Score7
WACC10.49%
ROIC/WACC0.06
Cap/Depr(3y)44.55%
Cap/Depr(5y)45.59%
Cap/Sales(3y)4.8%
Cap/Sales(5y)5.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.67%
EPS 3Y72.41%
EPS 5Y33.28%
EPS Q2Q%29.55%
EPS Next Y39.32%
EPS Next 2Y23.9%
EPS Next 3Y19.47%
EPS Next 5YN/A
Revenue 1Y (TTM)11.5%
Revenue growth 3Y11.78%
Revenue growth 5Y17.16%
Sales Q2Q%15.24%
Revenue Next Year13.39%
Revenue Next 2Y11.96%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
EBIT growth 1Y108.18%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.04%
EBIT Next 3Y39.61%
EBIT Next 5YN/A
FCF growth 1Y327.29%
FCF growth 3Y169.21%
FCF growth 5YN/A
OCF growth 1Y165.01%
OCF growth 3Y63.45%
OCF growth 5Y198.8%
Q2 HOLDINGS INC / QTWO FAQ
What is the fundamental rating for QTWO stock?
ChartMill assigns a fundamental rating of 5 / 10 to QTWO.
What is the valuation status for QTWO stock?
ChartMill assigns a valuation rating of 4 / 10 to Q2 HOLDINGS INC (QTWO). This can be considered as Fairly Valued.
Can you provide the profitability details for Q2 HOLDINGS INC?
Q2 HOLDINGS INC (QTWO) has a profitability rating of 4 / 10.
What is the valuation of Q2 HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Q2 HOLDINGS INC (QTWO) is 32.72 and the Price/Book (PB) ratio is 7.69.