Qualys (NasdaqGS:QLYS) - Share price, News & Analysis

Q: What is the Fair Price of QLYS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

QLYS ($129.85) is trading below our estimate of [[fair value]] ($257.36)

QLYS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

QLYS Stock Overview

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally.

Rewards

Trading at 49.5% below our estimate of its fair value

Earnings are forecast to grow 9.67% per year

Earnings grew by 31.5% over the past year

Risk Analysis

No risks detected for QLYS from our risk checks.

Qualys Competitors

Dolby Laboratories

NYSE:DLB

US$7.1b

Teradata

NYSE:TDC

US$3.9b

Commvault Systems

NasdaqGS:CVLT

US$2.9b

Progress Software

NasdaqGS:PRGS

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Qualys
Historical stock prices
Current Share Price	US$129.85
52 Week High	US$150.10
52 Week Low	US$97.02
Beta	0.76
1 Month Change	-2.98%
3 Month Change	-7.56%
1 Year Change	26.93%
3 Year Change	46.89%
5 Year Change	213.27%
Change since IPO	817.02%

Recent News & Updates

Jun 29

We Like Qualys' (NASDAQ:QLYS) Returns And Here's How They're Trending

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

May 24

Here's Why I Think Qualys (NASDAQ:QLYS) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	QLYS	US Software	US Market
7D	-4.9%	-4.7%	-2.5%
1Y	26.9%	-23.6%	-21.2%

Return vs Industry: QLYS exceeded the US Software industry which returned -23.7% over the past year.

Return vs Market: QLYS exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is QLYS's price volatile compared to industry and market?
QLYS volatility
QLYS Average Weekly Movement	7.1%
Software Industry Average Movement	11.0%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: QLYS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: QLYS's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	1,876	Sumedh Thakar	https://www.qualys.com

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.

Qualys Fundamentals Summary

How do Qualys's earnings and revenue compare to its market cap?
QLYS fundamental statistics
Market Cap	US$5.04b
Earnings (TTM)	US$96.14m
Revenue (TTM)	US$427.84m

52.4x

P/E Ratio

11.8x

P/S Ratio

Is QLYS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
QLYS income statement (TTM)
Revenue	US$427.84m
Cost of Revenue	US$91.76m
Gross Profit	US$336.08m
Other Expenses	US$239.93m
Earnings	US$96.14m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.48
Gross Margin	78.55%
Net Profit Margin	22.47%
Debt/Equity Ratio	0%

How did QLYS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is QLYS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QLYS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for QLYS. This is calculated by dividing QLYS's market cap by their current preferred multiple.
What is QLYS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.04b

QLYS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.6x
Enterprise Value/EBITDA	28.5x
PEG Ratio	5.4x

Price to Earnings Ratio vs Peers

How does QLYS's PE Ratio compare to its peers?

QLYS PE Ratio vs Peers

The above table shows the PE ratio for QLYS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	42.3x
DLB Dolby Laboratories	33.2x	23.6%	US$7.1b
TDC Teradata	30.1x	22.0%	US$3.9b
CVLT Commvault Systems	85.4x	6.6%	US$2.9b
PRGS Progress Software	20.6x	2.0%	US$2.0b
QLYS Qualys	52.4x	9.7%	US$5.0b

Forward PE

Price-To-Earnings vs Peers: QLYS is expensive based on its Price-To-Earnings Ratio (52.4x) compared to the peer average (42.3x).

Price to Earnings Ratio vs Industry

How does QLYS's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: QLYS is expensive based on its Price-To-Earnings Ratio (52.4x) compared to the US Software industry average (38.2x)

Price to Earnings Ratio vs Fair Ratio

What is QLYS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QLYS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	52.4x
Fair PE Ratio	30.8x

Price-To-Earnings vs Fair Ratio: QLYS is expensive based on its Price-To-Earnings Ratio (52.4x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

Share Price vs Fair Value

What is the Fair Price of QLYS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QLYS ($129.85) is trading below our estimate of fair value ($257.36)

Significantly Below Fair Value: QLYS is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: QLYS is poor value based on its PEG Ratio (5.4x)

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Future Growth

How is Qualys forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: QLYS's forecast earnings growth (9.7% per year) is above the savings rate (1.9%).

Earnings vs Market: QLYS's earnings (9.7% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: QLYS's earnings are forecast to grow, but not significantly.

Revenue vs Market: QLYS's revenue (14.6% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: QLYS's revenue (14.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: QLYS's Return on Equity is forecast to be high in 3 years time (36.6%)

Discover growth companies

Past Performance

How has Qualys performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QLYS has high quality earnings.

Growing Profit Margin: QLYS's current net profit margins (22.5%) are higher than last year (19.6%).

Past Earnings Growth Analysis

Earnings Trend: QLYS's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: QLYS's earnings growth over the past year (31.5%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: QLYS earnings growth over the past year (31.5%) exceeded the Software industry 26.8%.

Return on Equity

High ROE: QLYS's Return on Equity (22.5%) is considered high.

Discover strong past performing companies

Financial Health

How is Qualys's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: QLYS's short term assets ($573.2M) exceed its short term liabilities ($318.5M).

Long Term Liabilities: QLYS's short term assets ($573.2M) exceed its long term liabilities ($69.4M).

Debt to Equity History and Analysis

Debt Level: QLYS is debt free.

Reducing Debt: QLYS has not had any debt for past 5 years.

Debt Coverage: QLYS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: QLYS has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Qualys's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate QLYS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate QLYS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if QLYS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if QLYS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as QLYS has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure

CEO

Sumedh Thakar (46 yo)

2.75yrs

Tenure

US$9,396,665

Compensation

Mr. Sumedh S. Thakar serves as Chief Executive Officer at Qualys, Inc. since 2021 and has been its President since October 24, 2019 and serves as its Director since February 2021. He had been Interim Chief...

CEO Compensation Analysis

Compensation vs Market: Sumedh's total compensation ($USD9.40M) is about average for companies of similar size in the US market ($USD8.35M).

Compensation vs Earnings: Sumedh's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: QLYS's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: QLYS's board of directors are considered experienced (6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31