Q2 Holdings, Inc. cash flow to debt ratio of 58.09% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Q2 Holdings, Inc.'s free cash flow has increased 50.82% from $129.06M last year to $194.65M, signaling increasing performance

Q2 Holdings, Inc.'s debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability.

Q2 Holdings, Inc.'s debt has decreased relative to shareholder equity from 1.05 last year to 0.06 today, signaling strengthened financials

Q2 Holdings, Inc. has a net cash position, so leverage is healthy.

Q2 Holdings, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Q2 Holdings, Inc.'s profit margin has increased (-296.47%) in the last year from -5.53% to 10.87%, signaling increasing performance

Q2 Holdings, Inc.'s short-term assets of $556.05M exceed its short-term liabilities of $544.09M

Q2 Holdings, Inc.'s return on assets of 9.50% is higher than the 5.00% threshold, indicating efficient asset utilization

Q2 Holdings, Inc.'s return on equity of 14.49%, is lower than 15.00%, indicating bad performance

Q2 Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Q2 Holdings, Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Q2 Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Q2 Holdings, Inc. has a free cash flow yield of 4.92%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Q2 Holdings, Inc.'s yearly earnings has increased -234.96% since last year from $-38.54M to $52.01M, signaling increasing performance

Q2 Holdings, Inc.'s yearly revenue has increased 14.12% since last year from $696.46M to $794.81M, signaling increasing performance

ROIC 11.95% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Q2 Holdings, Inc.'s 3-year revenue CAGR of 12.00% is positive, indicating growing revenue over the past 3 years

Q2 Holdings, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Q2 Holdings, Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Q2 Holdings, Inc. has insufficient data to evaluate this check.

Q2 Holdings, Inc. has an earnings yield of 2.32%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Q2 Holdings, Inc. is overvalued relative to its fair value price of 13.26 based on EBITDA multiple model

Q2 Holdings, Inc. has an EV/EBITDA ratio of 30.39x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Q2 Holdings, Inc. is overvalued relative to its fair value price of -32.55 based on Earnings Fair Value model

Q2 Holdings, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Q2 Holdings, Inc. has a price-to-book ratio of 6.16x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Q2 Holdings, Inc. has a price-to-sales ratio of 4.68x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue