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.
No risks detected for QADB from our risk checks.
Excellent balance sheet with reasonable growth potential.
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: QADB has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: QADB underperformed the US Software industry which returned 20.4% over the past year.
Return vs Market: QADB underperformed the US Market which returned 5.2% over the past year.
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
No news available
Is QAD undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: QADB ($33.5) is trading below our estimate of fair value ($54.84)
Significantly Below Fair Value: QADB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: QADB is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: QADB 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 QADB's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: QADB is overvalued based on its PB Ratio (8.3x) compared to the US Software industry average (5.3x).
How is QAD forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QADB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: QADB is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: QADB's is expected to become profitable in the next 3 years.
Revenue vs Market: QADB's revenue (7.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: QADB'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: QADB's Return on Equity is forecast to be low in 3 years time (14.4%).
How has QAD performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QADB is currently unprofitable.
Growing Profit Margin: QADB is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: QADB is unprofitable, and losses have increased over the past 5 years at a rate of -40.1% per year.
Accelerating Growth: Unable to compare QADB's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: QADB is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).
Return on Equity
High ROE: QADB has a negative Return on Equity (-9.76%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is QAD's financial position?
Financial Position Analysis
Short Term Liabilities: QADB's short term assets ($196.6M) exceed its short term liabilities ($126.5M).
Long Term Liabilities: QADB's short term assets ($196.6M) exceed its long term liabilities ($31.5M).
Debt to Equity History and Analysis
Debt Level: QADB's debt to equity ratio (11.3%) is considered satisfactory.
Reducing Debt: QADB's debt to equity ratio has reduced from 21.9% to 11.3% over the past 5 years.
Inventory Level: QADB has a low level of unsold assets or inventory.
Debt Coverage by Assets: QADB'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: QADB has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: QADB has been profitable on average in the past, therefore cash runway is not a concern.
What is QAD's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: QADB's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: QADB's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (4.09%).
Stability and Growth of Payments
Stable Dividend: QADB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: QADB 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: QADB is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of QADB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anton Chilton (51yo)
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 ($USD2.59M).
Compensation vs Earnings: Anton's compensation has increased whilst the company is unprofitable.
|CEO & Director||1.2yrs||US$1.51m||0.19% $1.8m|
|CFO, Executive VP & Corporate Secretary||16.6yrs||US$2.08m||0.73% $6.9m|
|Chief Accounting Officer||12.1yrs||US$685.35k||0.035% $328.4k|
|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|
Experienced Management: QADB's management team is seasoned and experienced (8.8 years average tenure).
|CEO & Director||1.2yrs||US$1.51m||0.19% $1.8m|
|Independent Director||12.1yrs||US$289.00k||0.14% $1.3m|
|Chairman of the Board & Lead Director||1.5yrs||US$391.03k||0.15% $1.4m|
|Independent Director||0.2yrs||no data||0.020% $186.2k|
|Independent Director||13.8yrs||US$277.50k||0.29% $2.7m|
Experienced Board: QADB's board of directors are considered experienced (6.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
QAD Inc.'s company bio, employee growth, exchange listings and data sources
- Name: QAD Inc.
- Ticker: QADB
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Application Software
- Sector: Software
- Market Cap: US$946.864m
- Shares outstanding: 20.35m
- Website: https://www.qad.com
Number of Employees
- QAD Inc.
- 100 Innovation Place
- Santa Barbara
- United States
|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|
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||2020/02/28 01:19|
|End of Day Share Price||2020/02/27 00:00|
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.