Qualys (QLYS) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: N/A
• Average Volume (3M): 373.17K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.87
• Revenue Growth: 9.95%
• EPS Growth: 12.72%
• Country: US
• Employees: 2,443
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.86
• Shares Outstanding: 35,858,307
• 10 Day Avg. Volume: 320,283
• 30 Day Avg. Volume: 373,167
• 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: 0.96
• Enterprise Value/Revenue: 7.04
• Enterprise Value/Gross Profit: 8.54
• Enterprise Value/Ebitda: 19.71
• 1Y Price Target: $141.15
• Price Target Upside: 4.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): 7.42
• Revenue Forecast (FY): $718.03M

• Rating: 78 Outperform
• Price Target: $153.00 ▲(13.70% Upside)

Qualys' overall stock score is driven by its strong financial performance and positive earnings call sentiment. The company's robust profitability, efficient cash flow management, and strategic innovations in cybersecurity position it well for future growth. While technical analysis and valuation are moderate, they do not significantly detract from the company's strong fundamentals and positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability and expansion potential.

Product Innovation

Innovative product developments like TruConfirm and AI enhancements strengthen Qualys' competitive edge and address evolving cybersecurity needs, supporting sustained growth.

Financial Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.

Negative Factors

Challenging Upsell Environment

Difficulty in upselling can limit revenue growth from existing customers, potentially impacting long-term profitability and customer lifetime value.

Macroeconomic Challenges

Macroeconomic pressures may constrain new business opportunities and affect revenue growth, posing a risk to achieving financial targets.

Debt Increase

An increase in debt, even if slight, could impact cash flow and financial flexibility, necessitating careful management to maintain financial health.

Qualys Business Overview & Revenue Model

Company Description

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Vulnerability Management; Vulnerability Management, Detection and Response; Threat Protection; Continuous Monitoring; Patch Management; Multi-Vector Endpoint Detection and Response; Certificate Assessment; SaaS Detection and Response; Secure Enterprise Mobility; Policy Compliance; Security Configuration Assessment; PCI Compliance; File Integrity Monitoring; Security Assessment Questionnaire; Out of-Band Configuration Assessment; Web Application Scanning; Web Application Firewall; Global Asset Inventory; Cybersecurity Asset Management; Certificate Inventory; Cloud Inventory; Cloud Security Assessment; and Container Security. Its integrated suite of IT, security, and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify and manage IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend and implement remediation actions, and verify the implementation of such actions. The company also provides asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT, security, and compliance solutions. The company offers its solutions through its sales teams, as well as through its network of channel partners, such as security consulting organizations, managed service providers, resellers, and consulting firms. It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company was incorporated in 1999 and is headquartered in Foster City, California.

How the Company Makes Money

Qualys generates revenue primarily through a subscription-based model, offering its services on a recurring basis. Customers pay for access to its cloud-based platform and various security applications, which are billed annually or quarterly. Key revenue streams include subscriptions for vulnerability management, web application scanning, and compliance solutions. The company also benefits from upselling additional services or features to existing customers. Significant partnerships with major technology providers and integrations with other security tools enhance its offerings and expand its customer base, contributing positively to its earnings.

Qualys Financial Statement Overview

Summary

Qualys exhibits strong financial health with consistent revenue growth, high profitability margins, and efficient cash flow management. The company maintains a low leverage position, enhancing its financial stability. While the slight increase in debt warrants monitoring, the overall financial trajectory is positive, positioning Qualys well for future growth.

Income Statement

Qualys demonstrates strong profitability with a consistent increase in revenue and margins. The TTM Gross Profit Margin stands at 82.45%, indicating efficient cost management. The Net Profit Margin is robust at 28.96%, reflecting effective expense control. Revenue growth is steady, with a TTM growth rate of 2.51%. EBIT and EBITDA margins are healthy, at 33.36% and 35.73% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is solid with a low Debt-to-Equity Ratio of 0.10, indicating low leverage and financial stability. Return on Equity is impressive at 37.59%, reflecting strong profitability relative to shareholder equity. The Equity Ratio is stable, suggesting a balanced capital structure. However, the slight increase in debt over time could be monitored.

Cash Flow

Cash flow performance is strong, with a TTM Free Cash Flow Growth Rate of 13.30%, indicating effective cash generation. The Operating Cash Flow to Net Income Ratio is 0.65, showing good cash conversion. The Free Cash Flow to Net Income Ratio is high at 0.96, reflecting efficient cash management. Overall, cash flow metrics indicate robust liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	653.03M	607.57M	554.46M	489.72M	411.17M	362.96M
Gross Profit	538.40M	496.09M	446.97M	386.94M	321.73M	283.74M
EBITDA	233.31M	205.71M	190.06M	165.17M	123.58M	134.89M
Net Income	189.13M	173.68M	151.59M	107.99M	70.96M	91.57M
Balance Sheet
Total Assets	1.03B	973.54M	812.62M	700.94M	814.56M	736.82M
Cash, Cash Equivalents and Short-Term Investments	418.57M	381.42M	425.56M	321.33M	405.29M	356.02M
Total Debt	54.61M	47.22M	28.74M	42.18M	48.52M	57.37M
Total Liabilities	502.59M	496.42M	444.44M	411.81M	377.85M	332.34M
Stockholders Equity	529.40M	477.12M	368.17M	289.13M	436.71M	404.48M
Cash Flow
Free Cash Flow	271.36M	231.76M	235.82M	174.87M	174.96M	150.05M
Operating Cash Flow	281.46M	244.09M	244.60M	198.85M	200.62M	180.09M
Investing Cash Flow	-109.24M	-71.43M	-73.17M	145.07M	-29.53M	-80.93M
Financing Cash Flow	-182.40M	-145.65M	-141.49M	-306.03M	-107.89M	-112.58M

Qualys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 134.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 134.57 is below the 20-day moving average (MA) of 135.85, below the 50-day MA of 141.29, and below the 200-day MA of 135.08, indicating a bearish trend. The MACD of -2.39 indicates Negative momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 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
ATEN	79 Outperform	$1.26B	25.77	23.88%	1.33%	10.27%	3.52%
QLYS	78 Outperform	$4.80B	26.07	38.64%	―	9.95%	12.72%
NTCT	72 Outperform	$2.02B	22.10	5.91%	―	9.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.70B	-79.31	-8.95%	―	11.05%	45.23%
S	57 Neutral	$4.79B	-11.09	-25.79%	―	24.09%	-34.25%
VRNS	48 Neutral	$4.11B	―	-22.17%	―	11.37%	-34.44%