Qualys Inc. Common Stock (QLYS)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital without heavy debt, and Qualys's figures suggest just that. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $182.2M and net income was $52.4M, a 28.77% net margin. For FY2025, revenue was $669.1M and net income was $198.3M, up from $607.6M and $173.7M in FY2024. The company carries little debt: FairStock calculates D/E of 0.09, ROE of 38.59%, ROCE of 14.60%, Piotroski F-Score of 7/9, and Altman Z-Score of 8.34. Trailing free cash flow is $314.0M, a 4.6% FCF yield. The Lynch category is STALWART, based on five-year profit growth of 16.7% and revenue growth of 13.0%. Those are quality characteristics. The recurring cloud security and compliance platform may create sticky customer relationships, though the numbers alone do not prove a wide moat. The problem is price. At the 2026-10-13 close of $198.11, FairStock shows P/E 34.45, P/B 12.21, PEG 3.18, EV/EBITDA 26.21, and a Graham Number of $45.82, leaving a margin of safety of -332.37%. That is not the bargain I seek. The business is strong and growing at a low-double-digit pace, but the stock already reflects much of that quality. I would want either faster growth or a lower price before feeling compensated for the risk.

In plain English: Qualys sells cloud-based security and compliance software to businesses. The business looks strong on the numbers: sales and profits are growing, profit margins are high, debt is low, and it produces cash. At the recent price, however, the stock looks expensive compared with those profits and its stated net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer