Qualys (QLYS) AI Stock Analysis

• Market Cap: $4.67B
• Dividend Yield: N/A
• Average Volume (3M): 330.94K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.18
• Revenue Growth: 9.69%
• EPS Growth: 9.50%
• Country: US
• Employees: 2,443
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Infrastructure
• EPS (TTM): 1.68
• Shares Outstanding: 36,095,880
• 10 Day Avg. Volume: 429,856
• 30 Day Avg. Volume: 330,936
• PEG Ratio: 2.00
• Price to Book (P/B): 10.81
• Price to Sales (P/S): 8.49
• P/FCF Ratio: 22.26
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: 23.32
• 1Y Price Target: $140.54
• Price Target Upside: 8.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $147.00 ▲(13.56% Upside)

Qualys' strong financial performance and positive earnings call are the most significant factors driving the score. While technical analysis indicates bearish momentum, the company's strategic advancements and solid financial foundation provide a stable outlook. Valuation is moderate, reflecting a balanced risk-reward profile.

Positive Factors

Federal Market Opportunities

FedRAMP High status achievement positions Qualys as the only unified asset/VM/patch and cloud security platform at that level, opening opportunities in federal markets.

Financial Performance

Qualys reported a solid quarter, beating consensus estimates on revenue by $2.8 million.

Platform Adoption

Platform adoption is driving higher large customer spend.

Negative Factors

Billing Growth

Despite efforts, management anticipates a modest Billings growth of 5%-7% in the second half of the year.

Competitive Environment

Rivalry is intensifying in QLYS's competitive domain.

Deferred Revenue

Deferred revenue declined sequentially, reflecting prior challenges in go-to-market efforts.

Qualys Business Overview & Revenue Model

Company Description

Qualys (QLYS) is a leading provider of cloud-based security and compliance solutions that help organizations manage their IT security posture. Founded in 1999, the company operates in the cybersecurity sector, offering a comprehensive suite of products designed for vulnerability management, policy compliance, and web application security. Qualys' core services leverage its cloud platform to deliver real-time visibility into security vulnerabilities across various IT assets, enabling businesses to proactively identify and mitigate risks.

How the Company Makes Money

Qualys generates revenue primarily through a subscription-based model, offering its services on a Software-as-a-Service (SaaS) basis. Customers subscribe to various modules of Qualys' platform, which include solutions for vulnerability management, continuous monitoring, and compliance. The company typically has multi-year contracts with its clients, providing a steady stream of recurring revenue. Key revenue streams include fees from new subscriptions, renewals of existing contracts, and upselling additional services or features to existing customers. Qualys also benefits from strategic partnerships with other technology providers and integrators, enhancing its market reach and service capabilities, which contribute positively to its earnings.

Qualys Financial Statement Overview

Summary

Qualys exhibits strong financial health with consistent revenue growth, high profitability, and a solid balance sheet. While cash flow generation is strong, the recent decline in free cash flow growth warrants monitoring. Overall, the company is well-positioned in the Software - Infrastructure industry with a stable financial foundation.

Income Statement

Qualys has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.41%, following a steady upward trend over the past years. The company maintains strong profitability with a gross profit margin of 81.80% and a net profit margin of 29.18% in TTM. EBIT and EBITDA margins are also robust at 31.93% and 34.02%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.10, suggesting conservative leverage. Return on equity is impressive at 39.19%, indicating effective use of equity capital. The equity ratio stands at 50.83%, highlighting a solid equity base relative to total assets.

Cash Flow

Operating cash flow remains strong, with a TTM operating cash flow to net income ratio of 1.36, indicating robust cash generation relative to net income. However, the free cash flow growth rate has declined by 6.39% in TTM, which could be a concern if the trend continues. The free cash flow to net income ratio is healthy at 0.95, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	637.02M	607.57M	554.46M	489.72M	411.17M	362.96M
Gross Profit	521.35M	496.09M	446.97M	386.94M	321.73M	283.74M
EBITDA	210.20M	205.71M	190.06M	168.32M	125.29M	134.89M
Net Income	185.00M	173.68M	151.59M	107.99M	70.96M	91.57M
Balance Sheet
Total Assets	999.50M	973.54M	812.62M	700.94M	814.56M	736.82M
Cash, Cash Equivalents and Short-Term Investments	370.03M	381.42M	425.56M	321.33M	405.29M	356.02M
Total Debt	55.35M	47.22M	28.74M	42.18M	48.52M	57.37M
Total Liabilities	491.34M	496.42M	444.44M	411.81M	377.85M	332.34M
Stockholders Equity	508.17M	477.12M	368.17M	289.13M	436.71M	404.48M
Cash Flow
Free Cash Flow	239.50M	231.76M	235.82M	174.87M	174.96M	150.05M
Operating Cash Flow	252.12M	244.09M	244.60M	198.85M	200.62M	180.09M
Investing Cash Flow	-160.93M	-71.43M	-73.17M	145.07M	-29.53M	-80.93M
Financing Cash Flow	-178.42M	-145.65M	-141.49M	-306.03M	-107.89M	-112.58M

Qualys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 129.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QLYS, the sentiment is Negative. The current price of 129.45 is below the 20-day moving average (MA) of 134.65, below the 50-day MA of 138.59, and below the 200-day MA of 136.86, indicating a bearish trend. The MACD of -2.77 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QLYS.

Qualys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	75 Outperform	$4.67B	25.79	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	$6.09B	―	-25.73%	―	14.29%	-14.42%
VRNT	69 Neutral	$1.17B	25.12	5.32%	―	-2.09%	76.96%
Sector *	68 Neutral	¥241.22B	15.24	6.62%	2.44%	9.24%	1.58%
S	64 Neutral	$5.42B	―	-26.98%	―	28.19%	-31.34%
RPD	61 Neutral	$1.30B	48.22	155.46%	―	4.67%	―
TENB	60 Neutral	$3.46B	―	-12.60%	―	11.41%	33.76%

Qualys Corporate Events

Qualys Annual Meeting Approves Key Amendments

On June 11, 2025, Qualys held its Annual Meeting where approximately 91.70% of the shares were represented. During the meeting, stockholders elected Class I directors, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm, approved executive compensation, and sanctioned an amendment to the company’s certificate of incorporation to permit the exculpation of certain officers.

The most recent analyst rating on (QLYS) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Qualys stock, see the QLYS Stock Forecast page.