Quality Systems Stock Analysis, Valuation (NASDAQ:QSII)

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$21.91 $0.4 (1.86%) QSII stock closing price Aug 16, 2018 (Closing)

Watch the robo advisor video of Quality Systems stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for QSII stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Quality Systems, Inc. Stock Rating 3.1/5

Amigobulls QSII stock analysis takes into account various financial ratios like relative valuation, Quality Systems revenue, growth and return on equity based on latest quarter 2019 Q1 financial statements. We also check Quality Systems dividend performance. Quality Systems valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Quality Systems stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy QSII stock?

  • LTM Net margins were good at 0.5% for Quality Systems.
  • With a debt/equity ratio of 0.11, Quality Systems is comparatively less leveraged than its peers in the Medical sector.
  • The lower PS ratio 2.6 for QSII stock versus Medical sector average of 6.2 is a positive for the company.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Quality Systems at 0.8.
  • The company has a good Free Cash Flow (FCF) margin of 9.1.

Should you sell QSII stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2.9.
  • Trading at a PE ratio of 40.6, QSII stock is overvalued in comparison to sector average multiple of 24.5.
  • -4.9's negative ROIC of -4.9 indicates operational inefficiency.

Comments on this video and Quality Systems stock

Investors can use Amigobulls Quality Systems stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Quality Systems revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about QSII stock.