Here's a quick analysis of the cybersecurity company $QLYS

Long_Equity
2024-10-18

Here's a quick analysis of the cybersecurity company, $Qualys(QLYS)$

1. Return on capital has been going up consistently, and now sits above 50%.

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2. FCF per share growth has been going up exponentially, and is growing around 20% per annum.

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3. This FCF per share growth has been the result of both revenue going up and expense margins coming down - suggesting the company is now operating at a higher efficiency.

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4. Their use of stock-based compensation has been pretty high (currently around 28% of operating cash flow). Qualys has been counteracting any dilution by buying back stock, hence a reduction in shares outstanding.

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5. FCF yield is also currently at a decade high, in part to it being now down 38% since its Dec 23 high. What are your thoughts on Qualys?

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