Market Cap
US$1.0b
Last Updated
2020/02/17 00:27 UTC
Data Sources
Company Financials +
Executive Summary
QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide.
Rewards
Risk Analysis
No risks detected for QADA from our risk checks.
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has QAD's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QADA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.8%
QADA
1.7%
US Software
1.5%
US Market
1 Year Return
23.4%
QADA
42.3%
US Software
20.1%
US Market
Return vs Industry: QADA underperformed the US Software industry which returned 42.2% over the past year.
Return vs Market: QADA exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| QADA | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 1.7% | 1.5% |
| 30 Day | -1.7% | 7.7% | 1.4% |
| 90 Day | 8.6% | 18.4% | 8.7% |
| 1 Year | 24.2%23.4% | 43.9%42.3% | 22.7%20.1% |
| 3 Year | 83.1%79.3% | 152.8%142.4% | 50.1%40.5% |
| 5 Year | 162.0%150.4% | 224.7%201.5% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is QAD's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is QAD's (NASDAQ:QADA) Share Price Gain Of 146% Well Earned?3 weeks ago | Simply Wall St
Health Check: How Prudently Does QAD (NASDAQ:QADA) Use Debt?1 month ago | Simply Wall St
Does QAD Inc. (NASDAQ:QADA) Have A Particularly Volatile Share Price?Valuation
Is QAD undervalued compared to its fair value and its price relative to the market?
32.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: QADA ($52.36) is trading below our estimate of fair value ($77.97)
Significantly Below Fair Value: QADA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: QADA is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: QADA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate QADA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: QADA is overvalued based on its PB Ratio (9.1x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is QAD forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
118.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QADA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: QADA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: QADA's is expected to become profitable in the next 3 years.
Revenue vs Market: QADA's revenue (7.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: QADA's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: QADA's Return on Equity is forecast to be low in 3 years time (14.4%).
Next Steps
Past Performance
How has QAD performed over the past 5 years?
-40.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QADA is currently unprofitable.
Growing Profit Margin: QADA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: QADA is unprofitable, and losses have increased over the past 5 years at a rate of -40.1% per year.
Accelerating Growth: Unable to compare QADA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: QADA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).
Return on Equity
High ROE: QADA has a negative Return on Equity (-9.76%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is QAD's financial position?
Financial Position Analysis
Short Term Liabilities: QADA's short term assets ($196.6M) exceed its short term liabilities ($126.5M).
Long Term Liabilities: QADA's short term assets ($196.6M) exceed its long term liabilities ($31.5M).
Debt to Equity History and Analysis
Debt Level: QADA's debt to equity ratio (11.3%) is considered satisfactory.
Reducing Debt: QADA's debt to equity ratio has reduced from 21.9% to 11.3% over the past 5 years.
Balance Sheet
Inventory Level: QADA has a low level of unsold assets or inventory.
Debt Coverage by Assets: QADA's debt is covered by short term assets (assets are 14.9x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: QADA has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: QADA has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is QAD's current dividend yield, its reliability and sustainability?
0.55%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: QADA's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: QADA's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: QADA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: QADA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: QADA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of QADA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.8yrs
Average management tenure
CEO
Anton Chilton (51yo)
1.2yrs
Tenure
US$1,506,522
Compensation
Mr. Anton Chilton has been the Chief Executive Officer and Director of QAD Inc. since December 19, 2018. Mr. Chilton was Chief of Global Field Operations and Executive Vice President at QAD Inc. since Marc ...
CEO Compensation Analysis
Compensation vs Market: Anton's total compensation ($USD1.51M) is below average for companies of similar size in the US market ($USD2.47M).
Compensation vs Earnings: Anton's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.2yrs | US$1.51m | 0.19% $1.9m | |
| Founder | 34.1yrs | US$3.85m | 1.02% $10.3m | |
| CFO, Executive VP & Corporate Secretary | 16.6yrs | US$2.08m | 0.73% $7.4m | |
| Chief Accounting Officer | 12.1yrs | US$685.35k | 0.035% $350.5k | |
| Chief Technology Officer | 8.8yrs | no data | no data | |
| Chief Information Officer | 0yrs | no data | no data | |
| Senior Vice President | 5.6yrs | no data | no data | |
| Chief Marketing Officer & Senior VP | 0yrs | no data | no data | |
| Chief People Officer | 5.6yrs | no data | no data | |
| Senior Vice President | 0yrs | no data | no data |
8.8yrs
Average Tenure
51.5yo
Average Age
Experienced Management: QADA's management team is seasoned and experienced (8.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.2yrs | US$1.51m | 0.19% $1.9m | |
| Founder | 34.1yrs | US$3.85m | 1.02% $10.3m | |
| Independent Director | 12.1yrs | US$289.00k | 0.14% $1.4m | |
| Chairman of the Board & Lead Director | 1.5yrs | US$391.03k | 0.15% $1.5m | |
| Independent Director | 0.2yrs | no data | 0.020% $198.7k | |
| Independent Director | 13.8yrs | US$277.50k | 0.29% $2.9m |
6.8yrs
Average Tenure
61yo
Average Age
Experienced Board: QADA's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
QAD Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: QAD Inc.
- Ticker: QADA
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Application Software
- Sector: Software
- Market Cap: US$1.011b
- Shares outstanding: 20.35m
- Website: https://www.qad.com
Number of Employees
Location
- QAD Inc.
- 100 Innovation Place
- Santa Barbara
- California
- 93108
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| QADA | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Dec 2010 |
| QADB | NasdaqGS (Nasdaq Global Select) | Class B Common Stock | US | USD | Dec 2010 |
Biography
QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Cloud ERP and QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers’ material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company’s QAD Enterprise Applications also comprise QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:27 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.