Qualys (QLYS) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: N/A
• Average Volume (3M): 296.72K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.14
• Revenue Growth: 9.58%
• EPS Growth: 12.41%
• Country: US
• Employees: 2,443
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 1.67
• Shares Outstanding: 36,326,126
• 10 Day Avg. Volume: 335,799
• 30 Day Avg. Volume: 296,724
• PEG Ratio: 0.73
• Price to Book (P/B): 14.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.68
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 13.88
• Enterprise Value/Ebitda: 8.64
• 1Y Price Target: $131.33
• Price Target Upside: -8.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: $156.00 ▲(8.35%Upside)

Qualys demonstrates strong financial performance with impressive revenue and profit growth, supported by solid cash flows and a conservative balance sheet. The stock shows positive momentum but is nearing overbought levels, suggesting potential short-term volatility. While the valuation reflects growth potential, the lack of a dividend may deter some investors. The earnings call highlighted strengths in innovation and channel growth but also underscored economic uncertainties and rising expenses. Overall, Qualys is well-positioned for future growth, though investors should remain mindful of market conditions.

Positive Factors

Financial Performance

Qualys exceeded estimates on revenue and earnings per share, and management slightly raised guidance despite growing macro uncertainty.

Market Opportunities

Qualys continues to be bullish on the Federal opportunity with the impending influx of FedRAMP High certifications creating a positive catalyst.

Product Innovation

The Enterprise TruRisk Management platform is exciting for CISOs as it quantifies cyber risk in terms of dollars for board communication.

Negative Factors

Competitive Pressure

There are concerns about growing competitive headwinds from legacy virtual machine providers and XDR platform providers.

Macroeconomic Challenges

Incremental revenue from new customers is expected to face more pressure with an uptick in macroeconomic uncertainty.

Sales Strategy

Sales rep productivity has not reached expected levels, which is contributing to the pivot in the go-to-market strategy.

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 subscription fees for its cloud-based security services. The company's revenue model is centered on offering Software-as-a-Service (SaaS) solutions that provide continuous monitoring and protection of IT assets. Customers pay subscription fees based on the number of devices or IP addresses monitored, the type of services used, and the contract duration. Qualys benefits from a recurring revenue model, with customers typically signing multi-year contracts, which provides a stable and predictable revenue stream. Additionally, strategic partnerships with managed service providers, resellers, and technology integrators enhance its market reach and contribute to revenue growth.

Qualys Financial Statement Overview

Summary

Qualys is in a strong financial position with impressive growth metrics across income, balance sheet, and cash flow statements. The company's revenue and profit growth are robust, supported by high margins and efficient cost management. The balance sheet reflects a conservative approach to leverage, enhancing financial stability. Cash flows are strong, showcasing excellent liquidity and operational efficiency. While there is room for improvement in operational efficiency, the overall financial health is solid, positioning Qualys well for future expansion.

Income Statement

Qualys has demonstrated strong revenue growth, with a significant increase from $489.7 million in 2022 to $622.0 million in TTM (Trailing-Twelve-Months). The company maintains robust gross profit margins above 80% consistently, indicating efficient cost management. Net profit margins are healthy, and EBITDA margins exceed 30%, reflecting good profitability. The trajectory of revenue and profit growth is promising, although the EBIT margin suggests room for operational efficiency improvements.

Balance Sheet

The balance sheet is solid, characterized by a low debt-to-equity ratio of approximately 0.10 in TTM (Trailing-Twelve-Months), illustrating conservative leverage. The return on equity (ROE) is impressive, indicating effective use of equity capital to generate profits. The equity ratio is respectable, reflecting a strong capital base relative to assets. Overall, financial stability is robust, with potential for further leveraging equity to boost growth.

Cash Flow

Cash flow performance is exceptional, with consistent growth in free cash flow, evidencing effective cash management. The operating cash flow to net income ratio is robust, suggesting strong operational cash generation relative to profits. The free cash flow to net income ratio further underscores efficient cash conversion. These metrics indicate strong liquidity and financial flexibility, positioning Qualys well for future investments and growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	622.04M	607.57M	554.46M	489.72M	411.17M	362.96M
Gross Profit	508.84M	496.09M	446.97M	386.94M	321.73M	283.74M
EBITDA	211.64M	205.71M	190.06M	168.32M	125.29M	134.89M
Net Income	181.48M	173.68M	151.59M	107.99M	70.96M	91.57M
Balance Sheet
Total Assets	684.49M	973.54M	812.62M	700.94M	814.56M	736.82M
Cash, Cash Equivalents and Short-Term Investments	331.95M	381.42M	425.56M	321.33M	405.29M	356.02M
Total Debt	49.45M	47.22M	28.74M	42.18M	48.52M	57.37M
Total Liabilities	297.76M	496.42M	444.44M	411.81M	377.85M	332.34M
Stockholders Equity	386.73M	477.12M	368.17M	289.13M	436.71M	404.48M
Cash Flow
Free Cash Flow	255.86M	231.76M	235.82M	174.87M	174.96M	150.05M
Operating Cash Flow	268.18M	244.09M	244.60M	198.85M	200.62M	180.09M
Investing Cash Flow	-86.53M	-71.43M	-73.17M	145.07M	-29.53M	-80.93M
Financing Cash Flow	-164.76M	-145.65M	-141.49M	-306.03M	-107.89M	-112.58M

Qualys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 143.98 is above the 20-day moving average (MA) of 140.55, above the 50-day MA of 135.68, and above the 200-day MA of 135.12, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 95.13 is Negative, 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
QLYS	78 Outperform	$5.25B	29.42	40.23%	―	9.58%	12.41%
VRNT	74 Outperform	$1.12B	27.60	5.32%	―	-2.09%	76.96%
TENB	70 Neutral	$4.10B	―	-12.09%	―	11.79%	35.35%
VRNS	64 Neutral	$5.60B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$6.04B	―	-26.98%	―	32.25%	20.56%
RPD	62 Neutral	$1.54B	60.12	164.75%	―	6.19%	―
Sector *	56 Neutral	$3.18B	5.02	-5.68%	5.66%	8.05%	-41.83%

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.