QUALYS INC (QLYS) Stock Fundamental Analysis
NASDAQ:QLYS - Nasdaq - US74758T3032 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to QLYS. QLYS was compared to 284 industry peers in the Software industry. QLYS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QLYS has a correct valuation and a medium growth rate. These ratings could make QLYS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
QLYS had positive earnings in the past year.
In the past year QLYS had a positive cash flow from operations.
In the past 5 years QLYS has always been profitable.
Each year in the past 5 years QLYS had a positive operating cash flow.
1.2 Ratios
QLYS has a better Return On Assets (17.84%) than 94.39% of its industry peers.
QLYS has a better Return On Equity (36.40%) than 92.63% of its industry peers.
QLYS has a Return On Invested Capital of 28.78%. This is amongst the best in the industry. QLYS outperforms 97.19% of its industry peers.
QLYS had an Average Return On Invested Capital over the past 3 years of 30.81%. This is significantly above the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 36.4% | ||
| ROIC | 28.78% |
ROA(3y)17.3%
ROA(5y)14.61%
ROE(3y)38.31%
ROE(5y)30.77%
ROIC(3y)30.81%
ROIC(5y)24.74%
1.3 Margins
QLYS has a Profit Margin of 28.59%. This is amongst the best in the industry. QLYS outperforms 91.58% of its industry peers.
In the last couple of years the Profit Margin of QLYS has grown nicely.
QLYS's Operating Margin of 30.81% is amongst the best of the industry. QLYS outperforms 95.44% of its industry peers.
In the last couple of years the Operating Margin of QLYS has grown nicely.
QLYS's Gross Margin of 81.65% is amongst the best of the industry. QLYS outperforms 85.61% of its industry peers.
In the last couple of years the Gross Margin of QLYS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 28.59% | ||
| GM | 81.65% |
OM growth 3Y13.04%
OM growth 5Y6.51%
PM growth 3Y18.3%
PM growth 5Y5.81%
GM growth 3Y1.44%
GM growth 5Y0.82%
2. Health
2.1 Basic Checks
QLYS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for QLYS has been reduced compared to 1 year ago.
Compared to 5 years ago, QLYS has less shares outstanding
QLYS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
QLYS has an Altman-Z score of 6.69. This indicates that QLYS is financially healthy and has little risk of bankruptcy at the moment.
QLYS has a better Altman-Z score (6.69) than 75.44% of its industry peers.
QLYS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.69 |
ROIC/WACC2.62
WACC11%
2.3 Liquidity
QLYS has a Current Ratio of 1.37. This is a normal value and indicates that QLYS is financially healthy and should not expect problems in meeting its short term obligations.
QLYS has a Current ratio (1.37) which is in line with its industry peers.
A Quick Ratio of 1.37 indicates that QLYS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, QLYS is in line with its industry, outperforming 43.16% of the companies in the same industry.
The current and quick ratio evaluation for QLYS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
QLYS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.32%, which is quite good.
QLYS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.24% yearly.
Looking at the last year, QLYS shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
QLYS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.57% yearly.
EPS 1Y (TTM)16.32%
EPS 3Y23.81%
EPS 5Y21.24%
EPS Q2Q%14.29%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y13.9%
Revenue growth 5Y13.57%
Sales Q2Q%10.11%
3.2 Future
Based on estimates for the next years, QLYS will show a small growth in Earnings Per Share. The EPS will grow by 6.10% on average per year.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y-2.93%
EPS Next 2Y2.65%
EPS Next 3Y4.23%
EPS Next 5Y6.1%
Revenue Next Year7.71%
Revenue Next 2Y7.39%
Revenue Next 3Y6.97%
Revenue Next 5Y7.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.68, QLYS is valued on the expensive side.
Based on the Price/Earnings ratio, QLYS is valued a bit cheaper than the industry average as 75.44% of the companies are valued more expensively.
QLYS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 21.30, QLYS is valued on the expensive side.
QLYS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. QLYS is cheaper than 76.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QLYS to the average of the S&P500 Index (21.38), we can say QLYS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
QLYS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QLYS is cheaper than 80.70% of the companies in the same industry.
81.05% of the companies in the same industry are more expensive than QLYS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.95 | ||
| EV/EBITDA | 19.57 |
4.3 Compensation for Growth
The excellent profitability rating of QLYS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y2.65%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
No dividends for QLYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126.75
+1.86 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-0.4%
Ins Owners0.77%
Ins Owner Change0.97%
Market Cap4.62B
Analysts67.59
Price Target142.15 (12.15%)
Short Float %7.5%
Short Ratio8.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.59%
Min EPS beat(2)15.02%
Max EPS beat(2)16.16%
EPS beat(4)4
Avg EPS beat(4)13.29%
Min EPS beat(4)9.07%
Max EPS beat(4)16.16%
EPS beat(8)8
Avg EPS beat(8)15.88%
EPS beat(12)12
Avg EPS beat(12)13.59%
EPS beat(16)16
Avg EPS beat(16)12.08%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)0.1%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)2
Avg Revenue beat(16)-1.11%
PT rev (1m)-1.03%
PT rev (3m)-3.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 21.3 | ||
| P/S | 7.61 | ||
| P/FCF | 19.95 | ||
| P/OCF | 18.94 | ||
| P/B | 9.69 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 19.57 |
EPS(TTM)6.13
EY4.84%
EPS(NY)5.95
Fwd EY4.69%
FCF(TTM)6.35
FCFY5.01%
OCF(TTM)6.69
OCFY5.28%
SpS16.65
BVpS13.08
TBVpS12.69
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 36.4% | ||
| ROCE | 34.34% | ||
| ROIC | 28.78% | ||
| ROICexc | 95.83% | ||
| ROICexgc | 104.97% | ||
| OM | 30.81% | ||
| PM (TTM) | 28.59% | ||
| GM | 81.65% | ||
| FCFM | 38.15% |
ROA(3y)17.3%
ROA(5y)14.61%
ROE(3y)38.31%
ROE(5y)30.77%
ROIC(3y)30.81%
ROIC(5y)24.74%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)36.76%
ROCE(5y)29.51%
ROICexcg growth 3Y9.17%
ROICexcg growth 5Y17.45%
ROICexc growth 3Y11.03%
ROICexc growth 5Y19.36%
OM growth 3Y13.04%
OM growth 5Y6.51%
PM growth 3Y18.3%
PM growth 5Y5.81%
GM growth 3Y1.44%
GM growth 5Y0.82%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 66.62% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 118.66% | ||
| Profit Quality | 133.44% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 6.69 |
F-Score6
WACC11%
ROIC/WACC2.62
Cap/Depr(3y)47.89%
Cap/Depr(5y)60.62%
Cap/Sales(3y)2.25%
Cap/Sales(5y)4.19%
Profit Quality(3y)152.97%
Profit Quality(5y)174.19%
High Growth Momentum
Growth
EPS 1Y (TTM)16.32%
EPS 3Y23.81%
EPS 5Y21.24%
EPS Q2Q%14.29%
EPS Next Y-2.93%
EPS Next 2Y2.65%
EPS Next 3Y4.23%
EPS Next 5Y6.1%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y13.9%
Revenue growth 5Y13.57%
Sales Q2Q%10.11%
Revenue Next Year7.71%
Revenue Next 2Y7.39%
Revenue Next 3Y6.97%
Revenue Next 5Y7.65%
EBIT growth 1Y14.8%
EBIT growth 3Y28.76%
EBIT growth 5Y20.96%
EBIT Next Year8.07%
EBIT Next 3Y7.12%
EBIT Next 5YN/A
FCF growth 1Y-1.72%
FCF growth 3Y9.57%
FCF growth 5Y11.75%
OCF growth 1Y-0.21%
OCF growth 3Y6.76%
OCF growth 5Y8.73%