Qualys, Inc. (NASDAQ: QLYS)

Sector: Technology Industry: Software - Infrastructure CIK: 0001107843
P/B 9.86
P/E 27.61
P/S 8.00
Market Cap 5.22 Bn
ROIC (Qtr) 28.57
Div Yield % 0.00
Rev 1y % (Qtr) 10.41
Total Debt (Qtr) 54.61 Mn
Debt/Equity (Qtr) 0.10

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 281.46M provides robust 5.15x coverage of total debt 54.61M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 225.25M provide 30.67x coverage of short-term debt 7.34M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.02B provides 18.67x coverage of total debt 54.61M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 271.36M exceeds capital expenditure of 10.10M by 26.86x, indicating strong organic growth funding capability.
  • Long-term investments of 246.18M provide solid 5.21x coverage of long-term debt 47.26M, indicating strategic financial planning.

Cons

  • Operating cash flow of 281.46M barely covers its investment activities of (109.24M), with a coverage ratio of -2.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (109.24M) provide weak support for R&D spending of 116.63M, which is -0.94x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 281.46M provides insufficient coverage of deferred revenue obligations of 387.81M, which is 0.73x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 281.46M shows concerning coverage of stock compensation expenses of 76.99M, with a 3.66 ratio indicating potential earnings quality issues.
  • Long-term investments of 246.18M represent a high 3.38x of fixed assets 72.75M, indicating potential overexposure to financial assets versus operational capabilities.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.93 2.56
EV to Cash from Ops. 18.06 38.32
EV to Debt 93.09 -11.37
EV to EBIT 21.52 -12.79
EV to EBITDA 22.30 7.72
EV to Free Cash Flow [EV/FCF] 18.73 24.22
EV to Market Cap 0.97 0.58
EV to Revenue 7.78 -35.00
Price to Book Value [P/B] 9.86 3.74
Price to Earnings [P/E] 27.61 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -25.97 -404.11
Cash and Equivalents Growth (1y) % -4.32 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 11.05 31.15
EBITDA Growth (1y) % 14.27 49.02
EBIT Growth (1y) % 16.04 25.85
EBT Growth (1y) % 16.04 17.82
EPS Growth (1y) % 12.31 70.69
FCF Growth (1y) % 22.13 295.45
Gross Profit Growth (1y) % 11.38 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.63 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.52 1.21
Current Ratio 1.38 2.57
Debt to Equity Ratio 0.10 -0.93
Interest Cover Ratio 0.00 -13.15
Times Interest Earned 0.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 38.50 -544.82
EBIT Margin % 36.17 -197.78
EBT Margin % 36.17 -602.74
Gross Margin % 82.40 52.06
Net Profit Margin % 29.00 -605.52