QTWO

Q2 Holdings Inc

Finance/Real Estate, TMT


Presented:08/06/2019
Price:$74.65
Cap:$3.52B
Current Price:$81.26
Cap:$4.90B

Presented

Date08/06/2019
Price$74.65
Market Cap$3.52B
Ent Value$3.09B
P/E RatioN/A
Book Value$3.45
Div Yield0%
Shares O/S47.15M
Ave Daily Vol501,152
Short Int11.74%

Current

Price$81.26
Market Cap$4.90B
Q2 Holdings, Inc. engages in the provision of digital banking solutions. Its services offers security, advisory, web services, custom services and end user marketing solutions. The company was founded by Robert H. Seale III on March 31, 2005 and is headquartered in Austin, TX.

Publicly traded companies mentioned herein: Fidelity National Information Services (FIS), Jack Henry & Associates (JKHY), NCR Corporation (NCR), Q2 Holdings (QTWO), 

Highlights

The presenter is short shares of Q2 Holdings (QTWO), a software company that provides digital banking solutions for banks and credit unions. QTWO is an early player in the space and has gained a lot of market share by taking core (centralized online real-time exchange) banking customers. However, the presenter thinks that the competition is heating up in the space. The stock currently trades at $75 (11x on NTM sales, or 59.6x on 2021 EBITDA). The presenter believes that the fair value should be 34x on 2021 EBITDA estimates (ex stock-based compensations), getting him to a price target of $51, representing 31% downside. The stock should see further downside if economic conditions worsen, as QTWO's business is very sensitive to the economy.

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Idea Discussion

Commentor 1 - 2 weeks ago

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