Quality Systems Inc

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QSII : NASDAQ : Technology
$15.96 up 0.04 | 0.25%
Today's Range: 15.75 - 16.0
Avg. Daily Volume: 357500.0
08/17/17 - 12:09 PM ET

Financial Analysis


QUALITY SYSTEMS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. QUALITY SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.07 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.31% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)130.92122.21
EBITDA ($mil)16.7817.27
EBIT ($mil)7.296.62
Net Income ($mil)3.9-0.65


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)29.2531.19
Total Assets ($mil)489.91505.07
Total Debt ($mil)45.088.0
Equity ($mil)314.19270.13


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin60.4960.02
EBITDA Margin12.8114.13
Operating Margin5.575.41
Sales Turnover1.060.98
Return on Assets4.65-0.26
Return on Equity7.25-0.5
Debt Q1 FY17 Q1 FY16
Current Ratio1.241.3
Debt/Capital0.130.25
Interest Expense0.681.01
Interest Coverage10.776.53


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)63.3761.51
Div / share0.00.0
EPS0.06-0.01
Book value / share4.964.39
Institutional Own % n/a n/a
Avg Daily Volume351338.0310054.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 71.36 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 3.07 indicates valuation on par with the S&P 500 average of 3.03 and a significant discount versus the industry average of 5.89. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, QUALITY SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
QSII 42.22 Peers 71.36   QSII 8.62 Peers 25.23

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

QSII is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

QSII is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
QSII 20.00 Peers 42.96   QSII 0.32 Peers 0.85

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

QSII is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

QSII trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
QSII 3.07 Peers 5.89   QSII 1900.00 Peers -140.02

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

QSII is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

QSII is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
QSII 1.86 Peers 5.67   QSII 5.24 Peers 36.47

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

QSII is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

QSII significantly trails its peers on the basis of sales growth

 

 

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