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TelegramQAD Inc. Financial Ratios 2020-2011 | QADA
Brief overview of QAD Inc.'s multiples and efficiency
The review covers five available annual periods spanning 2013 to 2019.
The valuation comparison uses P/E 87.15x (median 42.09x), EV/EBITDA 80.82x (median 23.45x), P/S 3.16x (median 2.73x). Valuation is 45.6% above five-year reference levels. The premium requires support from earnings and returns.
The inverse P/E implies an earnings yield of 1.1%. This is not a dividend yield, but current earnings relative to market price.
The latest available business-quality ratios are ROE -13.7%, ROA -4.9%, ROCE -3.8%. The business is not generating positive returns on invested resources. Valuation should be read cautiously until earnings recover.
PEG of 0.24x shows valuation is not outpacing embedded growth. The conclusion depends on earnings durability.
The cash conversion cycle is 15.1 days versus 9.2 days initially. Turnover changed little.
Valuation takeaway
QAD Inc.'s market premium is not yet supported by strong capital returns, raising valuation risk.
Annual Financial Ratios QAD Inc.
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|---|---|---|---|
P/E |
-61.5 | 87.1 | -94.7 | -34.6 | 42.1 | 30.2 | 46.6 | 30.8 | 20.1 | 53.4 |
P/S |
3.2 | 2.7 | 2.8 | 1.9 | 1.4 | 1.3 | 1.1 | 0.8 | 0.9 | 0.7 |
EV/EBITDA |
-158.1 | 80.8 | -272.9 | 100.5 | 23.3 | 17.1 | 23.4 | 12.9 | 8.7 | 14.1 |
PEG |
0.24 | 0.41 | -2.25 | 0.13 | -1.25 | 0.39 | -9.62 | -0.83 | 0.11 | 0.12 |
P/B |
8.5 | 6.8 | 8.1 | 4.8 | 3.0 | 3.5 | 4.6 | 3.5 | 3.5 | 2.6 |
P/CF |
97.3 | 66.8 | 151.2 | 35.1 | 18.8 | 20.8 | 15.7 | 16.4 | 12.5 | 6.0 |
ROE % |
-13.74 | 7.83 | -8.58 | -13.71 | 7.02 | 11.59 | 9.95 | 11.41 | 17.39 | 4.83 |
ROA % |
-4.94 | 3.29 | -3.02 | -5.50 | 3.11 | 4.57 | 2.72 | 2.94 | 4.94 | 1.27 |
ROCE % |
-3.80 | 6.33 | -2.47 | 2.56 | 6.98 | 12.15 | 11.06 | 14.68 | 21.52 | 8.51 |
DSO |
99.5 | 91.9 | 100.2 | 92.4 | 87.6 | 98.1 | 100.0 | 105.0 | 95.6 | 108.9 |
DPO |
16.1 | 15.3 | 22.8 | 20.6 | 19.2 | 22.6 | 22.0 | 42.5 | 33.7 | 38.9 |
All numbers in USD currency
Multiples are an important financial analysis tool for the company QAD Inc., allowing investors and analysts to quickly assess the company’s value and investment attractiveness based on the ratio of market indicators to the company’s financial performance. Essentially, multiples express how the market values the company relative to its earnings, revenue, equity, or other key metrics.
Advantages of Using Financial Ratios- Simplified Data Analysis
Financial ratios transform large volumes of accounting data into compact and easily interpretable indicators, significantly simplifying the assessment of the company’s condition. - Comparability Between Companies
Multiples standardize financial metrics, enabling objective comparison of companies of different sizes, industries, and market capitalizations. - Identification of Trends and Issues
Regular analysis of ratios helps track the dynamics of financial health, identify strengths and weaknesses of the business, as well as potential risks. - Decision Support
Financial multiples serve as an important tool for investors, creditors, and company management in making investment, credit, and managerial decisions. - Accelerated Assessment of Investment Attractiveness
Ratios allow quick determination of key performance, liquidity, and financial stability indicators, facilitating prompt evaluation of companies’ attractiveness for investments.
Using multiples enables comparison between companies, even if they differ in size or industry, as they standardize financial data into ratios convenient for analysis. This is especially useful for evaluating companies where direct analysis of financial statements may be complex or require in-depth knowledge.
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