Q2 Holdings, Inc. (QTWO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Credo Technology Group Holding Ltd.

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Squarespace, Inc.

Varonis Systems, Inc.

Box, Inc.

Why is Q2 Holdings, Inc. ?

With a growth in Operating Profit of 131.12%, the company declared Outstanding results in Jun 25

The company has declared positive results for the last 9 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 177.52 MM
ROCE(HY) Highest at 0.92%
DEBT-EQUITY RATIO (HY) Lowest at 0.94 %

With ROE of -2.24%, it has a risky valuation with a 10.43 Price to Book Value

Over the past year, while the stock has generated a return of -29.44%, its profits have risen by 82.2%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Q2 Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Q2 Holdings, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Q2 Holdings, Inc.

-38.63%

0.54

43.90%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.56%

EBIT Growth (5y)

20.54%

EBIT to Interest (avg)

-6.83

Debt to EBITDA (avg)

3.68

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.69

Tax Ratio

49.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.61

EV to EBIT

64.24

EV to EBITDA

25.48

EV to Capital Employed

5.43

EV to Sales

3.69

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

8.46%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

34What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 201.46 MM

ROCE(HY)

Highest at 8.82%

DEBT-EQUITY RATIO (HY)

Lowest at -13.33 %

NET SALES(Q)

Highest at USD 208.22 MM

PRE-TAX PROFIT(Q)

Highest at USD 22.22 MM

NET PROFIT(Q)

Highest at USD 21.86 MM

RAW MATERIAL COST(Y)

Fallen by -8.26% (YoY

CASH AND EQV(HY)

Highest at USD 1,005.24 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 14.41 times

EPS(Q)

Highest at USD 0.3

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Q2 Holdings, Inc.

Pre-Tax Profit

At USD 22.22 MM has Grown at 411.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 21.86 MM has Grown at 5,844.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 201.46 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 208.22 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 22.22 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 21.86 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -13.33 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

EPS

Highest at USD 0.3

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,005.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 14.41 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales