Quality Systems Inc

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QSII : NASDAQ : Technology
$14.09 up 0.1 | 0.71%
Today's Range: 13.97 - 14.14
Avg. Daily Volume: 429800.0
12/09/16 - 4:00 PM ET

Financial Analysis


QUALITY SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. QUALITY SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.00 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.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q2 FY16 Q2 FY15
Net Sales ($mil)127.17125.37
EBITDA ($mil)21.8620.18
EBIT ($mil)11.2213.72
Net Income ($mil)3.998.32


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)30.7114.76
Total Assets ($mil)478.89436.14
Total Debt ($mil)48.00.0
Equity ($mil)285.47287.5


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin62.2859.29
EBITDA Margin17.1916.09
Operating Margin8.8210.94
Sales Turnover1.031.14
Return on Assets-1.187.35
Return on Equity-1.9811.16
Debt Q2 FY16 Q2 FY15
Current Ratio1.161.92
Debt/Capital0.140.0
Interest Expense0.80.0
Interest Coverage13.974573.33


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)62.0960.86
Div / share0.00.18
EPS0.060.14
Book value / share4.64.72
Institutional Own % n/a n/a
Avg Daily Volume426380.0372226.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.92 indicates valuation on par with the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.96. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing 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 NM Peers 84.47   QSII 9.94 Peers 22.56

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

QSII's P/E is negative making this valuation measure meaningless.

 

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 16.06 Peers 38.20   QSII NA Peers 1.51

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
QSII 2.92 Peers 4.96   QSII -118.86 Peers 28.30

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.

 

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

However, QSII is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
QSII 1.68 Peers 5.40   QSII -1.01 Peers 23.83

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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