Qualys (QLYS) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: N/A
• Average Volume (3M): 303.27K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.21
• Revenue Growth: 9.69%
• EPS Growth: 9.50%
• Country: US
• Employees: 2,443
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.68
• Shares Outstanding: 36,095,880
• 10 Day Avg. Volume: 320,506
• 30 Day Avg. Volume: 303,272
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: 22.89
• 1Y Price Target: $140.45
• Price Target Upside: 2.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $149.00 ▲(9.03% Upside)

Qualys' strong financial performance and strategic growth initiatives are significant strengths, supported by robust revenue growth and profitability. However, the valuation appears high, and technical indicators suggest a neutral trend. Macroeconomic challenges and increased expenses are risks to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth driven by strong channel partner performance indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Strategic Product Launch

The introduction of the Agentic AI platform enhances Qualys' product offerings, potentially increasing customer adoption and improving competitive positioning in the cybersecurity market.

Federal Sector Opportunity

FedRAMP High authorization opens significant opportunities in the federal sector, potentially driving revenue growth and strengthening Qualys' market position in government cybersecurity.

Negative Factors

Macroeconomic Challenges

Macroeconomic uncertainties could hinder new business growth and delay deals, impacting revenue and strategic initiatives over the medium term.

Lower Free Cash Flow Margin

The decline in free cash flow margin suggests potential cash flow management challenges, which could affect investment capacity and financial flexibility.

Increased Operating Expenses

Rising operating expenses, particularly in R&D and marketing, may pressure profitability margins, requiring careful cost 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 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 demonstrates strong financial health with consistent revenue growth, high profitability, and a solid balance sheet. The company maintains a low debt-to-equity ratio and impressive return on equity. However, the recent decline in free cash flow growth is a concern that warrants monitoring.

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	214.18M	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: Positive
• Last Price: 136.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 136.66 is above the 20-day moving average (MA) of 134.48, above the 50-day MA of 134.01, and above the 200-day MA of 135.35, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QLYS.

Qualys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	76 Outperform	1.32B	26.61	25.01%	1.31%	11.04%	18.70%
QLYS	74 Outperform	$4.91B	26.97	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	6.67B	-64.99	-30.14%	―	14.29%	-14.42%
NTCT	69 Neutral	1.85B	25.78	4.70%	―	5.29%	―
S	68 Neutral	6.05B	-13.75	-28.48%	―	25.39%	-42.90%
TENB	63 Neutral	3.59B	-79.14	-12.83%	―	11.41%	33.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%