Q2 Holdings
Market Cap
US$5.4b
Last Updated
2021/05/06 23:15 UTC
Data Sources
Company Financials +
Executive Summary
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Mediocre balance sheet with concerning outlook.
Similar Companies
Share Price & News
How has Q2 Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QTWO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: QTWO's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-9.8%
QTWO
-4.2%
US Software
-1.7%
US Market
1 Year Return
12.4%
QTWO
39.5%
US Software
51.8%
US Market
Return vs Industry: QTWO underperformed the US Software industry which returned 41.7% over the past year.
Return vs Market: QTWO underperformed the US Market which returned 52.8% over the past year.
Shareholder returns
| QTWO | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.8% | -4.2% | -1.7% |
| 30 Day | -8.5% | -1.8% | 1.5% |
| 90 Day | -33.4% | -5.3% | 3.1% |
| 1 Year | 12.4%12.4% | 40.5%39.5% | 54.4%51.8% |
| 3 Year | 62.4%62.4% | 123.9%117.3% | 63.0%52.8% |
| 5 Year | 304.0%304.0% | 301.5%279.7% | 127.2%101.9% |
Long-Term Price Volatility Vs. Market
How volatile is Q2 Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Q2 Holdings (NYSE:QTWO) Is Making Moderate Use Of Debt2 months ago | Simply Wall St
Announcing: Q2 Holdings (NYSE:QTWO) Stock Soared An Exciting 628% In The Last Five Years3 months ago | Simply Wall St
We Think Q2 Holdings (NYSE:QTWO) Has A Fair Chunk Of DebtValuation
Is Q2 Holdings undervalued compared to its fair value and its price relative to the market?
8.37x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: QTWO ($94.93) is trading above our estimate of fair value ($59.31)
Significantly Below Fair Value: QTWO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: QTWO is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: QTWO 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 QTWO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: QTWO is overvalued based on its PB Ratio (8.4x) compared to the US Software industry average (7.8x).
Future Growth
How is Q2 Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
20.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QTWO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: QTWO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: QTWO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: QTWO's revenue (15.8% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: QTWO's revenue (15.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: QTWO's Return on Equity is forecast to be low in 3 years time (4.5%).
Past Performance
How has Q2 Holdings performed over the past 5 years?
-35.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QTWO is currently unprofitable.
Growing Profit Margin: QTWO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: QTWO is unprofitable, and losses have increased over the past 5 years at a rate of 35.2% per year.
Accelerating Growth: Unable to compare QTWO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: QTWO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.1%).
Return on Equity
High ROE: QTWO has a negative Return on Equity (-20.41%), as it is currently unprofitable.
Financial Health
How is Q2 Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: QTWO's short term assets ($616.9M) exceed its short term liabilities ($153.4M).
Long Term Liabilities: QTWO's short term assets ($616.9M) do not cover its long term liabilities ($634.1M).
Debt to Equity History and Analysis
Debt Level: QTWO's debt to equity ratio (89.2%) is considered high.
Reducing Debt: QTWO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Balance Sheet
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: QTWO has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if QTWO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Dividend
What is Q2 Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate QTWO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate QTWO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if QTWO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if QTWO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of QTWO'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?
3.7yrs
Average management tenure
CEO
Matt Flake (48 yo)
7.58yrs
Tenure
US$7,730,829
Compensation
Mr. Matthew P. Flake, also known as Matt, has been the Chief Executive Officer of Q2 Holdings, Inc. since October 2013 and its President since March 6, 2019. Mr. Flake has been Chief Executive Officer of Q...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD7.73M) is about average for companies of similar size in the US market ($USD6.47M).
Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: QTWO's management team is considered experienced (3.7 years average tenure).
Board Members
Experienced Board: QTWO's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.
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 been diluted in the past year, with total shares outstanding growing by 15%.
Top Shareholders
Company Information
Q2 Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Q2 Holdings, Inc.
- Ticker: QTWO
- Exchange: NYSE
- Founded: 2004
- Industry: Application Software
- Sector: Software
- Market Cap: US$5.378b
- Shares outstanding: 56.31m
- Website: https://www.q2.com
Number of Employees
Location
- Q2 Holdings, Inc.
- 13785 Research Boulevard
- Suite 150
- Austin
- Texas
- 78750
- United States
Listings
Biography
Q2 Holdings, Inc. provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The company offers Q2 Digital Banking and Transactions, a bro...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 23:15 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.