QAD Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>QAD</div>
QAD Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.11. The current year Calculated Tax Rate is expected to grow to 11.54, whereas Net Income Per Employee is forecasted to decline to (8.5 K). Today's short post will go over QAD as your potential position. We will analyze the question of why investors should continue to be confident in QAD outlook.
Published over two weeks ago
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Is there a reason to trade QAD (NASDAQ:QADA) and short DocuSign?
QAD is UNDERVALUED at 47.21 per share with modest projections ahead. About 33.0% of QAD outstanding shares are owned by corporate insiders. Insiders ownership of QAD Inc refers to the amount of QAD Inc equity owned by QAD officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of QAD, including its current ownership diagnostics.

How important is QAD's Liquidity

QAD financial leverage refers to using borrowed capital as a funding source to finance QAD Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. QAD financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between QAD's total debt and its cash.

How QAD utilizes its cash?

To perform a cash flow analysis of QAD, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash QAD is receiving and how much cash it distributes out in a given period. The QAD cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. QAD Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 17 Million

Breaking down the case for QAD

QAD Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of -0.09. However, we do advice investors to further question QAD Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Investment(4.17)
Return on Assets(5.12)
Return on Equity(13.13)

QAD is projected to stay under $45 in September

Current Jensen Alpha is up to -0.09. Price may slip again. QAD Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of -0.09. However, we do advice investors to further question QAD Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On QAD

Whereas some firms in the software?application industry are either recovering or due for a correction, QAD may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in QAD. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to QAD.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of QAD Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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