Q2 HOLDINGS INC (QTWO) Stock Fundamental Analysis
USA - NYSE:QTWO - US74736L1098 - Common Stock
69.9 USD
-0.31 (-0.44%)
Overall QTWO gets a fundamental rating of 5 out of 10. We evaluated QTWO against 281 industry peers in the Software industry. QTWO has only an average score on both its financial health and profitability. QTWO is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
QTWO had positive earnings in the past year.
In the past year QTWO had a positive cash flow from operations.
QTWO had negative earnings in each of the past 5 years.
QTWO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.22%, QTWO is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
QTWO has a better Return On Equity (5.09%) than 69.04% of its industry peers.
With a decent Return On Invested Capital value of 3.00%, QTWO is doing good in the industry, outperforming 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 5.09% | ||
| ROIC | 3% |
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
The Profit Margin of QTWO (4.12%) is better than 64.41% of its industry peers.
QTWO has a better Operating Margin (3.43%) than 66.19% of its industry peers.
Looking at the Gross Margin, with a value of 53.37%, QTWO is doing worse than 66.55% of the companies in the same industry.
In the last couple of years the Gross Margin of QTWO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.43% | ||
| PM (TTM) | 4.12% | ||
| GM | 53.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QTWO is destroying value.
QTWO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, QTWO has more shares outstanding
The debt/assets ratio for QTWO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.23 indicates that QTWO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.23, QTWO is in the better half of the industry, outperforming 63.70% of the companies in the same industry.
QTWO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.28
WACC10.57%
2.3 Liquidity
A Current Ratio of 0.97 indicates that QTWO may have some problems paying its short term obligations.
With a Current ratio value of 0.97, QTWO is not doing good in the industry: 74.02% of the companies in the same industry are doing better.
QTWO has a Quick Ratio of 0.97. This is a bad value and indicates that QTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.97, QTWO is not doing good in the industry: 72.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.97% over the past year.
Measured over the past years, QTWO shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.28% on average per year.
The Revenue has grown by 13.93% in the past year. This is quite good.
QTWO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.16% yearly.
EPS 1Y (TTM)71.97%
EPS 3Y72.41%
EPS 5Y33.28%
EPS Q2Q%45.45%
Revenue 1Y (TTM)13.93%
Revenue growth 3Y11.78%
Revenue growth 5Y17.16%
Sales Q2Q%15.25%
3.2 Future
The Earnings Per Share is expected to grow by 19.47% on average over the next years. This is quite good.
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 30.79, QTWO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of QTWO indicates a somewhat cheap valuation: QTWO is cheaper than 63.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.56, QTWO is valued a bit more expensive.
The Price/Forward Earnings ratio is 27.76, which means the current valuation is very expensive for QTWO.
60.85% of the companies in the same industry are more expensive than QTWO, based on the Price/Forward Earnings ratio.
QTWO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 27.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QTWO is valued a bit cheaper than 62.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QTWO indicates a somewhat cheap valuation: QTWO is cheaper than 72.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.41 | ||
| EV/EBITDA | 50.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QTWO's earnings are expected to grow with 19.47% in the coming years.
PEG (NY)0.78
PEG (5Y)0.93
EPS Next 2Y23.9%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
No dividends for QTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:QTWO (11/18/2025, 3:00:19 PM)
69.9
-0.31 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners106.25%
Inst Owner Change5.95%
Ins Owners0.5%
Ins Owner Change-2.39%
Market Cap4.36B
Revenue(TTM)769.63M
Net Income(TTM)31.73M
Analysts79.13
Price Target103.52 (48.1%)
Short Float %4.33%
Short Ratio1.96
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)11.04%
Min EPS beat(2)7.29%
Max EPS beat(2)14.78%
EPS beat(4)4
Avg EPS beat(4)11.25%
Min EPS beat(4)7.29%
Max EPS beat(4)14.78%
EPS beat(8)7
Avg EPS beat(8)9.45%
EPS beat(12)10
Avg EPS beat(12)19.61%
EPS beat(16)13
Avg EPS beat(16)29.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-0.77%
Revenue beat(12)0
Avg Revenue beat(12)-1.17%
Revenue beat(16)0
Avg Revenue beat(16)-1.38%
PT rev (1m)-1.39%
PT rev (3m)-1%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 27.76 | ||
| P/S | 5.67 | ||
| P/FCF | 28.41 | ||
| P/OCF | 24.14 | ||
| P/B | 7.01 | ||
| P/tB | 157.57 | ||
| EV/EBITDA | 50.58 |
EPS(TTM)2.27
EY3.25%
EPS(NY)2.52
Fwd EY3.6%
FCF(TTM)2.46
FCFY3.52%
OCF(TTM)2.9
OCFY4.14%
SpS12.33
BVpS9.98
TBVpS0.44
PEG (NY)0.78
PEG (5Y)0.93
Graham Number22.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 5.09% | ||
| ROCE | 3.8% | ||
| ROIC | 3% | ||
| ROICexc | 16.52% | ||
| ROICexgc | N/A | ||
| OM | 3.43% | ||
| PM (TTM) | 4.12% | ||
| GM | 53.37% | ||
| FCFM | 19.96% |
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 | 3.22 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.78% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 217.07% | ||
| Profit Quality | 484.18% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.23 |
F-Score7
WACC10.57%
ROIC/WACC0.28
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)71.97%
EPS 3Y72.41%
EPS 5Y33.28%
EPS Q2Q%45.45%
EPS Next Y39.32%
EPS Next 2Y23.9%
EPS Next 3Y19.47%
EPS Next 5YN/A
Revenue 1Y (TTM)13.93%
Revenue growth 3Y11.78%
Revenue growth 5Y17.16%
Sales Q2Q%15.25%
Revenue Next Year13.39%
Revenue Next 2Y11.96%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
EBIT growth 1Y152.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.04%
EBIT Next 3Y39.61%
EBIT Next 5YN/A
FCF growth 1Y212.31%
FCF growth 3Y169.21%
FCF growth 5YN/A
OCF growth 1Y130.23%
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 30.79 and the Price/Book (PB) ratio is 7.01.