NasdaqGS:QADA

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Executive Summary

QAD Inc. provides cloud-based enterprise software solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. More Details

Rewards

Earnings are forecast to grow 180.3% per year

Became profitable this year

Risk Analysis

No risks detected for QADA from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate 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

-0.4%

QADA

-3.1%

US Software

-1.1%

US Market


1 Year Return

-2.7%

QADA

51.7%

US Software

15.6%

US Market

Return vs Industry: QADA underperformed the US Software industry which returned 56.1% over the past year.

Return vs Market: QADA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

QADAIndustryMarket
7 Day-0.4%-3.1%-1.1%
30 Day5.9%2.4%4.2%
90 Day8.0%9.1%6.3%
1 Year-2.1%-2.7%52.7%51.7%18.2%15.6%
3 Year21.3%19.0%132.3%124.5%39.6%30.4%
5 Year76.9%69.6%243.1%223.0%79.5%59.2%

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

Valuation

Is QAD undervalued compared to its fair value and its price relative to the market?

4818.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QADA ($43.68) is trading above our estimate of fair value ($5.5)

Significantly Below Fair Value: QADA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QADA is poor value based on its PE Ratio (4818.5x) compared to the US Software industry average (62.8x).

PE vs Market: QADA is poor value based on its PE Ratio (4818.5x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: QADA is poor value based on its PEG Ratio (26.7x)


Price to Book Ratio

PB vs Industry: QADA is overvalued based on its PB Ratio (8.1x) compared to the US Software industry average (7.1x).


Next Steps

Future Growth

How is QAD forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

180.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QADA's forecast earnings growth (180.3% per year) is above the savings rate (2.2%).

Earnings vs Market: QADA's earnings (180.3% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QADA's revenue (5.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: QADA's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QADA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has QAD performed over the past 5 years?

-30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QADA has high quality earnings.

Growing Profit Margin: QADA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: QADA has become profitable over the past 5 years, growing earnings by -30.7% per year.

Accelerating Growth: QADA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: QADA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (14.4%).


Return on Equity

High ROE: QADA's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is QAD's financial position?


Financial Position Analysis

Short Term Liabilities: QADA's short term assets ($203.9M) exceed its short term liabilities ($137.4M).

Long Term Liabilities: QADA's short term assets ($203.9M) exceed its long term liabilities ($36.4M).


Debt to Equity History and Analysis

Debt Level: QADA's debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: QADA's debt to equity ratio has reduced from 12.5% to 11.6% over the past 5 years.

Debt Coverage: QADA's debt is well covered by operating cash flow (143.2%).

Interest Coverage: QADA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is QAD current dividend yield, its reliability and sustainability?

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QADA's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: QADA's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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?

7.8yrs

Average management tenure


CEO

Anton Chilton (52 yo)

1.83yrs

Tenure

US$1,766,630

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 ($USD1.77M) is below average for companies of similar size in the US market ($USD2.94M).

Compensation vs Earnings: Anton's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anton Chilton
CEO & Director1.83yrsUS$1.77m0.025%
$ 216.3k
Pamela Lopker
Founder34.75yrsUS$2.43m1%
$ 8.6m
Daniel Lender
CFO, Executive VP & Corporate Secretary17.25yrsUS$1.80m0.65%
$ 5.6m
Kara Bellamy
Chief Accounting Officer12.75yrsUS$622.26k0.030%
$ 262.2k
Tony Winter
Chief Technology Officer9.42yrsno datano data
Leif Petersen
Chief Information Officerno datano datano data
Edward Boclair
Senior Vice President6.25yrsno datano data
Carter Lloyds
Chief Marketing Officer & Senior VPno datano datano data
Kaye Swanson
Chief People Officer6.25yrsno datano data
Charles Eggerding
Senior Vice President of Automotive Strategic Accountsno datano datano data
Steve Gardner
Senior Vice Presidentno datano datano data
Rob Jeremiassen
Managing Director for Australia & New Zealand6.08yrsno datano data

7.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: QADA's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anton Chilton
CEO & Director1.83yrsUS$1.77m0.025%
$ 216.3k
Pamela Lopker
Founder34.75yrsUS$2.43m1%
$ 8.6m
Lee Roberts
Independent Director12.75yrsUS$234.52k0.16%
$ 1.4m
Peter van Cuylenburg
Independent Chairman of the Board & Lead Director2.17yrsUS$291.02k0.17%
$ 1.4m
Kathleen Crusco
Independent Director0.83yrUS$211.82k0.030%
$ 254.3k
Scott Adelson
Independent Director14.5yrsUS$225.02k0.30%
$ 2.6m

7.5yrs

Average Tenure

62yo

Average Age

Experienced Board: QADA's board of directors are considered experienced (7.5 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$860.096m
  • Shares outstanding: 20.70m
  • Website: https://www.qad.com

Number of Employees


Location

  • QAD Inc.
  • 100 Innovation Place
  • Santa Barbara
  • California
  • 93108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QADANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 2010
QADBNasdaqGS (Nasdaq Global Select)Class B Common StockUSUSDDec 2010

Biography

QAD Inc. provides cloud-based enterprise software solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers various software solutions, such as customer an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:55
End of Day Share Price2020/10/26 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.