Quality Systems Stock Analysis, Valuation (NASDAQ:QSII)

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$20.05 $0.29 (1.47%) QSII stock closing price Jun 20, 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 2.8/5

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 2018 Q4 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?

  • Net margins came in at average 0.5% for Quality Systems over the last twelve months.
  • Quality Systems has a lower debt burden than its peers in the -sectordesc- sector, with a debt/equity ratio of 0.11.
  • QSII stock is trading at a favorable price to sales multiple of 2.4 as against the Medical sector average multiple of 6.5.
  • Quality Systems has a good Return On Equity (ROE) of 0.8.

Should you sell QSII stock?

  • Long term revenue growth of 2.9 over the past 5 years has been disappointing.
  • QSII stock is trading at a PE ratio of 36.5, which is worse than the sector average multiple of 25.
  • Quality Systems has a negative ROIC (Return on Invested Capital) of -4.9.

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.