NasdaqGS:QLYS

Stock Analysis Report

Executive Summary

Qualys, Inc. provides cloud-based security and compliance solutions in the United States and internationally.

Rewards

Trading at 30.9% below its fair value

Earnings are forecast to grow 15.8% per year

Earnings grew by 37.8% over the past year

Risk Analysis

No risks detected for QLYS from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Qualys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QLYS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

QLYS

0.2%

US Software

0.8%

US Market


1 Year Return

6.0%

QLYS

28.5%

US Software

17.8%

US Market

Return vs Industry: QLYS underperformed the US Software industry which returned 28.5% over the past year.

Return vs Market: QLYS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

QLYSIndustryMarket
7 Day-0.6%0.2%0.8%
30 Day-0.2%1.1%1.8%
90 Day6.1%4.2%4.1%
1 Year6.0%6.0%30.5%28.5%20.4%17.8%
3 Year154.9%154.9%125.6%116.5%45.9%36.4%
5 Year115.6%115.6%181.2%161.4%68.1%49.6%

Price Volatility Vs. Market

How volatile is Qualys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Qualys undervalued compared to its fair value and its price relative to the market?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QLYS ($84.77) is trading below our estimate of fair value ($122.62)

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


Price To Earnings Ratio

PE vs Industry: QLYS is poor value based on its PE Ratio (52.4x) compared to the Software industry average (44.5x).

PE vs Market: QLYS is poor value based on its PE Ratio (52.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: QLYS is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: QLYS is overvalued based on its PB Ratio (9.1x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is Qualys forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QLYS's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: QLYS's earnings (15.8% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: QLYS's revenue (14% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: QLYS's revenue (14% 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 (29.5%)


Next Steps

Past Performance

How has Qualys performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QLYS has high quality earnings.

Growing Profit Margin: QLYS's current net profit margins (20.3%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: QLYS's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: QLYS's earnings growth over the past year (37.8%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: QLYS earnings growth over the past year (37.8%) exceeded the Software industry 15.8%.


Return on Equity

High ROE: QLYS's Return on Equity (17.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Qualys's financial position?


Financial Position Analysis

Short Term Liabilities: QLYS's short term assets ($379.8M) exceed its short term liabilities ($213.7M).

Long Term Liabilities: QLYS's short term assets ($379.8M) exceed its long term liabilities ($51.2M).


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

Inventory Level: QLYS has a low level of unsold assets or inventory.

Debt Coverage by Assets: QLYS's debt is covered by short term assets (assets are 5.3453364714749E+16x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QLYS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Qualys's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Philippe Courtot (74yo)

18.8yrs

Tenure

US$9,096,098

Compensation

Mr. Philippe F. Courtot has been the Chairman and Chief Executive Officer of Qualys, Inc. since March 2001 and had been its President since May 2014 until October 30, 2019. Mr. Courtot has repeatedly demon ...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD9.10M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: QLYS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

10.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: QLYS's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: QLYS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$38,26819 Nov 19
Melissa Fisher
EntityIndividual
Role
Chief Financial Officer
CFO & Principal Accounting Officer
Shares450
Max PriceUS$85.04
SellUS$420,80714 Jun 19
Kristi Rogers
EntityIndividual
Shares4,982
Max PriceUS$85.83

Ownership Breakdown

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


Management Team

  • Philippe Courtot (74yo)

    Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$9.10m
  • Bruce Posey (67yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 7.6yrs
    • Compensation: US$2.60m
  • Rima Touma-Bruno

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Melissa Fisher (46yo)

    CFO & Principal Accounting Officer

    • Tenure: 3.7yrs
    • Compensation: US$3.56m
  • Sumedh Thakar (43yo)

    President & Chief Product Officer

    • Tenure: 0.2yrs
    • Compensation: US$6.10m
  • Nicolas Chaillan (35yo)

    Federal Chief Technology Officer

    • Tenure: 1.8yrs
  • Vinayak Rao

    VP of Corporate Development & Investor Relations

    • Tenure: 0yrs
  • Laurie MacCarthy

    Executive Vice President

    • Tenure: 0.9yrs
  • Dilip Bachwani

    Senior Vice President of Engineering & Cloud Operations

    • Tenure: 0.7yrs

Board Members

  • Arn Schaeffer (53yo)

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Philippe Courtot (74yo)

    Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$9.10m
  • Gerhard Eschelbeck (54yo)

    Member of CTO & CISO Advisory Board

    • Tenure: 0.4yrs
  • Emir Arslanagic

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Becky Bace

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • David Mortman

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Matthew Pemble

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Sandra Bergeron (60yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$308.00k
  • Peter Pace (73yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$296.17k
  • Jeff Hank (59yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$301.17k

Company Information

Qualys, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Qualys, Inc.
  • Ticker: QLYS
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$3.286b
  • Shares outstanding: 38.76m
  • Website: https://www.qualys.com

Number of Employees


Location

  • Qualys, Inc.
  • 919 East Hillsdale Boulevard
  • 4th Floor
  • Foster City
  • California
  • 94404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QLYSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2012
3L7ADB (Deutsche Boerse AG)YesCommon StockDEEURSep 2012

Biography

Qualys, Inc. provides cloud-based security and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Asset Inventory, CMDB Sync, Vulnerability  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 00:54
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.