Qualys (QLYS) AI Stock Analysis

• Market Cap: $5.24B
• Dividend Yield: N/A
• Average Volume (3M): 363.51K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.12
• 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: 428,394
• 30 Day Avg. Volume: 363,510
• 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: 0.85
• Enterprise Value/Revenue: 6.80
• Enterprise Value/Gross Profit: 8.24
• Enterprise Value/Ebitda: 19.02
• 1Y Price Target: $139.00
• Price Target Upside: -5.46% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): 6.43
• Revenue Forecast (FY): $659.61M

• Rating: 77 Outperform
• Price Target: $166.00 ▲(12.91% Upside)

Qualys demonstrates strong financial health and positive earnings call sentiment, driven by robust revenue growth and strategic innovations. Technical indicators suggest a positive trend, though caution is advised due to potential overbought conditions. Valuation is moderate, reflecting balanced growth prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Innovations and Product Expansion

Product innovations enhance competitive advantage, enabling Qualys to offer advanced solutions and maintain market leadership.

Strong Free Cash Flow

Robust cash flow generation supports reinvestment in growth initiatives and provides financial flexibility for strategic opportunities.

Negative Factors

Challenging Upsell Environment

Difficulty in upselling could limit revenue growth from existing customers, impacting long-term profitability and expansion potential.

Macroeconomic Challenges

Macroeconomic uncertainties may hinder new business growth, affecting revenue projections and strategic planning.

Decline in Free Cash Flow Growth

A declining free cash flow growth rate could constrain future investment capabilities and limit financial resilience.

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 presents a robust financial profile with strong profitability, efficient cash flow management, and a solid balance sheet. The company shows consistent growth and effective cost control, although the slight increase in debt should be monitored.

Income Statement

Qualys demonstrates strong profitability with a consistent increase in gross profit margin, reaching 82.4% in TTM. The net profit margin is robust at 28.96%, indicating effective cost management. Revenue growth is steady, with a 2.51% increase in TTM, reflecting stable demand. EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.10, indicating prudent financial leverage. Return on equity is impressive at 38.28%, highlighting strong shareholder returns. The equity ratio is stable, suggesting a solid capital structure. However, the slight increase in debt over time warrants monitoring.

Cash Flow

Qualys exhibits strong cash flow management with a 13.30% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy at 0.65, indicating efficient cash generation. The free cash flow to net income ratio is high at 0.96, reflecting strong cash conversion.

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: Positive
• Last Price: 147.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 147.02 is above the 20-day moving average (MA) of 129.65, above the 50-day MA of 131.82, and above the 200-day MA of 133.53, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 95.85 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	77 Outperform	$5.24B	28.48	38.64%	―	9.95%	12.72%
ATEN	77 Outperform	$1.30B	26.57	23.88%	1.37%	10.27%	3.52%
NTCT	75 Outperform	$1.96B	29.23	5.91%	―	9.60%	―
S	62 Neutral	$5.59B	―	-27.34%	―	25.39%	-42.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$3.30B	―	-8.95%	―	11.05%	45.23%
VRNS	44 Neutral	$4.13B	―	-22.17%	―	11.37%	-34.44%

Qualys Corporate Events

Qualys Inc Reports Strong Q3 Earnings Amid Innovations

Qualys Inc’s recent earnings call reflected a generally positive sentiment, driven by strong financial performance and significant innovations in cybersecurity solutions. The company reported notable revenue growth and profitability, although challenges in upselling and macroeconomic uncertainties were acknowledged. The focus on product innovation and strategic partnerships contributed to the optimistic outlook.

Qualys Reports Strong Q3 2025 Earnings Growth

Qualys, Inc. is a prominent provider of cloud-based IT, security, and compliance solutions, known for its innovative approach to unifying risk management workflows and reducing operational complexity for its clients. In its third-quarter earnings report for 2025, Qualys announced a 10% year-over-year revenue growth, reaching $169.9 million, and raised its full-year revenue guidance to between $665.8 million and $667.8 million. The company reported a GAAP net income of $50.3 million and a non-GAAP net income of $67.4 million, with an adjusted EBITDA of $82.6 million, reflecting its strong financial performance.

Qualys Inc. Shines in Q2 2025 Earnings Call

Qualys Inc. recently held its earnings call, shedding light on the company’s impressive performance and strategic advancements. The sentiment was largely positive, with strong revenue growth, successful customer acquisitions, and innovative product launches taking center stage. Despite some challenges posed by the macroeconomic environment and a decrease in free cash flow margins, the overall outlook remains optimistic.

Qualys Reports Strong Q2 2025 Earnings and Raises Guidance

Qualys, Inc. is a prominent provider of cloud-based IT security and compliance solutions, serving a wide range of global clients, including many Fortune 100 companies, with a focus on streamlining security processes and enhancing business outcomes.