Last Updated: 12 Nov 2024
Executive Summary
Qualys Inc. (QLYS) is a leading provider of cloud-based IT security and compliance solutions. The company has a strong track record of financial performance, with consistent revenue and earnings growth. Qualys' shares have outperformed the broader market in recent years, and the company is expected to continue to benefit from the growing demand for cybersecurity solutions.
Company Overview
Qualys was founded in 1999 and is headquartered in Foster City, California. The company's mission is to provide organizations with the tools they need to protect their IT infrastructure from cyber threats. Qualys' cloud-based platform offers a comprehensive suite of security and compliance solutions, including vulnerability management, threat detection, and incident response.
Fundamental Analysis
Qualys' financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 15% over the past five years. Earnings per share (EPS) have grown at a CAGR of 20% over the same period. Qualys is profitable, with a net income margin of 28.7%. The company's balance sheet is strong, with $1.2 billion in cash and equivalents and no debt.
Qualys' valuation metrics are attractive. The company's trailing price-to-earnings (PE) ratio of 33.99 is below the average for the software industry. The company's forward PE ratio of 25.38 is also below the industry average.
Technical Analysis
Qualys' stock price has been in a strong uptrend in recent years. The stock has broken out of a multi-year consolidation pattern and is now trading at its highest levels in history. The stock's technical indicators are positive, with the relative strength index (RSI) and moving average convergence divergence (MACD) both indicating that the stock is in a bullish trend.
Short Term Outlook
Qualys' stock is expected to continue to perform well in the short term. The company's strong financial performance and positive technical indicators suggest that the stock is likely to continue to rise. The stock's recent breakout from a consolidation pattern is a bullish sign, and the stock is now trading above its key moving averages.
Long Term Outlook
Qualys is expected to continue to benefit from the growing demand for cybersecurity solutions. The company's cloud-based platform and comprehensive suite of security and compliance solutions are well-positioned to meet the needs of organizations of all sizes. Qualys is a leader in the cybersecurity industry, and the company is expected to continue to grow its market share in the years to come.
Analyst Recommendations
The majority of analysts who cover Qualys have a buy rating on the stock. The average analyst price target for Qualys is $149.04, which represents a potential upside of 4% from the current price.
