Q2 Holdings (QTWO) Fundamental Analysis: Revenue, Earnings & Valuation

0.12 / 10

Underperform

Fundamental score is 0.12, showing severe weakness. Inventory turnover days (210.8) and Asset‑MV (‑0.55) are negative; Profit‑MV (‑0.61) and Operating cycle (21.2) sit in lowest groups. Equity multiplier modest (2.18). Asset‑liability ratio (48%) average, long‑term debt low, Net profit/Total profit high (95%). Rating: Underperform.

Analysis Checks(3/10)

Asset-liability ratio (%)

Value48.15

Score2/3

Weight-99.43%

1M Return1.54%

Operating cycle

Value21.24

Score0/3

Weight63.63%

1M Return-1.16%

Days sales outstanding

Value21.24

Score0/3

Weight54.33%

1M Return-0.94%

Profit-MV

Value-0.61

Score1/3

Weight220.18%

1M Return-3.97%

Current assets turnover ratio

Value1.43

Score2/3

Weight-146.79%

1M Return2.36%

Long-term debt to working capital ratio (%)

Value5.88

Score1/3

Weight-44.29%

1M Return0.73%

Asset-MV

Value-0.55

Score0/3

Weight256.49%

1M Return-6.04%

Equity multiplier (DuPont analysis %)

Value2.18

Score0/3

Weight29.63%

1M Return-0.49%

Inventory turnover days

Value210.83

Score2/3

Weight-227.48%

1M Return3.65%

Net profit / Total profit (%)

Value95.04

Score1/3

Weight-6.28%

1M Return0.10%

Is QTWO undervalued or overvalued?

QTWO scores 0.12/10 on fundamentals and holds a Premium valuation at present. Backed by its 8.82% ROE, 6.54% net margin, 56.01 P/E ratio, 4.40 P/B ratio, and 231.25% earnings growth, these metrics solidify its Underperform investment rating.