Q2 HOLDINGS INC (QTWO) Fundamental Analysis & Valuation

NYSE:QTWO • US74736L1098

Current stock price

48.22 USD
-1.19 (-2.41%)
At close:
48.22 USD
0 (0%)
After Hours:

This QTWO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. QTWO Profitability Analysis

1.1 Basic Checks

  • QTWO had positive earnings in the past year.
  • In the past year QTWO had a positive cash flow from operations.
  • In the past 5 years QTWO reported 4 times negative net income.
  • QTWO had a positive operating cash flow in each of the past 5 years.
QTWO Yearly Net Income VS EBIT VS OCF VS FCFQTWO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M

1.2 Ratios

  • QTWO's Return On Assets of 4.07% is fine compared to the rest of the industry. QTWO outperforms 70.91% of its industry peers.
  • QTWO has a better Return On Equity (7.86%) than 73.09% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.74%, QTWO is in the better half of the industry, outperforming 72.36% of the companies in the same industry.
Industry RankSector Rank
ROA 4.07%
ROE 7.86%
ROIC 4.74%
ROA(3y)-1.45%
ROA(5y)-4.11%
ROE(3y)-4.72%
ROE(5y)-11.99%
ROIC(3y)N/A
ROIC(5y)N/A
QTWO Yearly ROA, ROE, ROICQTWO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10 -20 -30

1.3 Margins

  • QTWO has a Profit Margin of 6.54%. This is in the better half of the industry: QTWO outperforms 67.27% of its industry peers.
  • QTWO's Operating Margin of 5.52% is fine compared to the rest of the industry. QTWO outperforms 68.73% of its industry peers.
  • The Gross Margin of QTWO (54.06%) is worse than 66.55% of its industry peers.
  • In the last couple of years the Gross Margin of QTWO has grown nicely.
Industry RankSector Rank
OM 5.52%
PM (TTM) 6.54%
GM 54.06%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.07%
GM growth 5Y4.52%
QTWO Yearly Profit, Operating, Gross MarginsQTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. QTWO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QTWO is destroying value.
  • The number of shares outstanding for QTWO has been increased compared to 1 year ago.
  • Compared to 5 years ago, QTWO has more shares outstanding
  • Compared to 1 year ago, QTWO has an improved debt to assets ratio.
QTWO Yearly Shares OutstandingQTWO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
QTWO Yearly Total Debt VS Total AssetsQTWO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.2 Solvency

  • An Altman-Z score of 3.09 indicates that QTWO is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.09, QTWO is doing good in the industry, outperforming 66.55% of the companies in the same 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 RankSector Rank
Debt/Equity 0
Debt/FCF 1.75
Altman-Z 3.09
ROIC/WACC0.46
WACC10.38%
QTWO Yearly LT Debt VS Equity VS FCFQTWO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.02 indicates that QTWO should not have too much problems paying its short term obligations.
  • QTWO's Current ratio of 1.02 is on the low side compared to the rest of the industry. QTWO is outperformed by 74.18% of its industry peers.
  • A Quick Ratio of 1.02 indicates that QTWO should not have too much problems paying its short term obligations.
  • The Quick ratio of QTWO (1.02) is worse than 73.09% of its industry peers.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1.02
QTWO Yearly Current Assets VS Current LiabilitesQTWO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. QTWO Growth Analysis

3.1 Past

  • QTWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.17%, which is quite impressive.
  • QTWO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 103.28% yearly.
  • The Revenue has grown by 14.12% in the past year. This is quite good.
  • Measured over the past years, QTWO shows a quite strong growth in Revenue. The Revenue has been growing by 14.56% on average per year.
EPS 1Y (TTM)48.17%
EPS 3Y110.64%
EPS 5Y103.28%
EPS Q2Q%30.77%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y12%
Revenue growth 5Y14.56%
Sales Q2Q%13.75%

3.2 Future

  • Based on estimates for the next years, QTWO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.23% on average per year.
  • The Revenue is expected to grow by 10.49% on average over the next years. This is quite good.
EPS Next Y22.61%
EPS Next 2Y19.78%
EPS Next 3Y19.23%
EPS Next 5YN/A
Revenue Next Year10.74%
Revenue Next 2Y10.46%
Revenue Next 3Y10.49%
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.
QTWO Yearly Revenue VS EstimatesQTWO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
QTWO Yearly EPS VS EstimatesQTWO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3 4

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5

4. QTWO Valuation Analysis

4.1 Price/Earnings Ratio

  • QTWO is valuated rather expensively with a Price/Earnings ratio of 19.84.
  • Based on the Price/Earnings ratio, QTWO is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
  • QTWO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 16.18, which indicates a correct valuation of QTWO.
  • QTWO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QTWO is cheaper than 69.45% of the companies in the same industry.
  • QTWO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
Industry RankSector Rank
PE 19.84
Fwd PE 16.18
QTWO Price Earnings VS Forward Price EarningsQTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 65.82% of the companies in the same industry are more expensive than QTWO, based on the Enterprise Value to EBITDA ratio.
  • 76.73% of the companies in the same industry are more expensive than QTWO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.36
EV/EBITDA 29.69
QTWO Per share dataQTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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 19.23% in the coming years.
PEG (NY)0.88
PEG (5Y)0.19
EPS Next 2Y19.78%
EPS Next 3Y19.23%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. QTWO Dividend Analysis

5.1 Amount

  • QTWO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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QTWO Fundamentals: All Metrics, Ratios and Statistics

Q2 HOLDINGS INC

NYSE:QTWO (4/8/2026, 8:04:00 PM)

After market: 48.22 0 (0%)

48.22

-1.19 (-2.41%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners112%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change13.13%
Market Cap3.01B
Revenue(TTM)794.81M
Net Income(TTM)52.01M
Analysts80.91
Price Target79.78 (65.45%)
Short Float %3.62%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)12.94%
Min EPS beat(2)11.11%
Max EPS beat(2)14.78%
EPS beat(4)4
Avg EPS beat(4)11.54%
Min EPS beat(4)7.29%
Max EPS beat(4)14.78%
EPS beat(8)8
Avg EPS beat(8)13.5%
EPS beat(12)11
Avg EPS beat(12)24.69%
EPS beat(16)13
Avg EPS beat(16)24.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-0.62%
Revenue beat(12)0
Avg Revenue beat(12)-0.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)0.57%
PT rev (3m)-12.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)0%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 19.84
Fwd PE 16.18
P/S 3.79
P/FCF 17.36
P/OCF 14.94
P/B 4.55
P/tB 42.64
EV/EBITDA 29.69
EPS(TTM)2.43
EY5.04%
EPS(NY)2.98
Fwd EY6.18%
FCF(TTM)2.78
FCFY5.76%
OCF(TTM)3.23
OCFY6.7%
SpS12.74
BVpS10.61
TBVpS1.13
PEG (NY)0.88
PEG (5Y)0.19
Graham Number24.08
Profitability
Industry RankSector Rank
ROA 4.07%
ROE 7.86%
ROCE 5.99%
ROIC 4.74%
ROICexc 11.58%
ROICexgc N/A
OM 5.52%
PM (TTM) 6.54%
GM 54.06%
FCFM 21.81%
ROA(3y)-1.45%
ROA(5y)-4.11%
ROE(3y)-4.72%
ROE(5y)-11.99%
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 3Y6.07%
GM growth 5Y4.52%
F-Score7
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.75
Debt/EBITDA 0
Cap/Depr 52.59%
Cap/Sales 3.53%
Interest Coverage 15.43
Cash Conversion 207.02%
Profit Quality 333.35%
Current Ratio 1.02
Quick Ratio 1.02
Altman-Z 3.09
F-Score7
WACC10.38%
ROIC/WACC0.46
Cap/Depr(3y)45.84%
Cap/Depr(5y)46.59%
Cap/Sales(3y)4.2%
Cap/Sales(5y)4.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.17%
EPS 3Y110.64%
EPS 5Y103.28%
EPS Q2Q%30.77%
EPS Next Y22.61%
EPS Next 2Y19.78%
EPS Next 3Y19.23%
EPS Next 5YN/A
Revenue 1Y (TTM)14.12%
Revenue growth 3Y12%
Revenue growth 5Y14.56%
Sales Q2Q%13.75%
Revenue Next Year10.74%
Revenue Next 2Y10.46%
Revenue Next 3Y10.49%
Revenue Next 5YN/A
EBIT growth 1Y226.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.94%
EBIT Next 3Y28.18%
EBIT Next 5YN/A
FCF growth 1Y62.45%
FCF growth 3Y198.63%
FCF growth 5YN/A
OCF growth 1Y48.4%
OCF growth 3Y76.63%
OCF growth 5YN/A

Q2 HOLDINGS INC / QTWO Fundamental Analysis FAQ

What is the fundamental rating for QTWO stock?

ChartMill assigns a fundamental rating of 5 / 10 to QTWO.


What is the valuation status of Q2 HOLDINGS INC (QTWO) stock?

ChartMill assigns a valuation rating of 5 / 10 to Q2 HOLDINGS INC (QTWO). This can be considered as Fairly Valued.


What is the profitability of QTWO stock?

Q2 HOLDINGS INC (QTWO) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for QTWO stock?

The Price/Earnings (PE) ratio for Q2 HOLDINGS INC (QTWO) is 19.84 and the Price/Book (PB) ratio is 4.55.


What is the financial health of Q2 HOLDINGS INC (QTWO) stock?

The financial health rating of Q2 HOLDINGS INC (QTWO) is 6 / 10.