Qualys (QLYS) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: N/A
• Average Volume (3M): 319.20K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.20
• 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: 288,107
• 30 Day Avg. Volume: 319,197
• 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: 1.04
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: 22.89
• 1Y Price Target: $140.45
• Price Target Upside: 7.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $149.00 ▲(13.68% Upside)

Qualys' strong financial performance and strategic growth initiatives are key strengths, supported by robust revenue growth and profitability. However, technical indicators suggest caution, and macroeconomic challenges could impact future performance. The company's valuation is moderate, reflecting its growth potential and strategic positioning in the cybersecurity market.

Positive Factors

Revenue Growth

Qualys' consistent revenue growth, supported by strong channel partner performance, indicates a robust market position and effective sales strategy, contributing to long-term financial stability.

Product Innovation

The introduction of the Agentic AI platform showcases Qualys' commitment to innovation, enhancing its competitive edge by improving cybersecurity solutions and attracting new customers.

Federal Sector Expansion

FedRAMP High authorization enables Qualys to expand its footprint in the federal sector, opening new revenue streams and strengthening its market position in government cybersecurity.

Negative Factors

Macroeconomic Challenges

Macroeconomic challenges could hinder Qualys' ability to secure new deals and sustain growth, potentially impacting revenue and profitability in the medium term.

Rising Operating Expenses

Increased operating expenses, while supporting growth initiatives, could pressure profit margins if revenue growth does not offset these costs, affecting long-term profitability.

Declining Free Cash Flow

A decline in free cash flow margin suggests potential cash flow management issues, which could limit Qualys' ability to invest in growth opportunities and maintain financial flexibility.

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: Negative
• Last Price: 131.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 131.07 is below the 20-day moving average (MA) of 133.91, below the 50-day MA of 133.21, and below the 200-day MA of 134.75, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 is Positive, 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	76 Outperform	$1.32B	26.75	24.39%	1.31%	11.04%	18.70%
QLYS	74 Outperform	$4.73B	26.11	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	$6.65B	―	-25.73%	―	14.29%	-14.42%
NTCT	69 Neutral	$1.91B	26.53	4.88%	―	5.29%	―
S	68 Neutral	$5.99B	―	-27.34%	―	25.39%	-42.90%
TENB	63 Neutral	$3.58B	―	-12.60%	―	11.41%	33.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%