Qualys Inc (QLYS, Financial), a leading provider of cloud security and compliance solutions, has seen a significant surge in its stock price over the past quarter. The company's stock price has risen by 18.36% over the past three months, from a modestly undervalued position to a fairly valued one according to the GF Value. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This article will delve into the factors contributing to this impressive performance and provide an in-depth analysis of the company's profitability, growth, and market position.
Company Overview: Qualys Inc
Founded in 1999 and publicly listed in 2012, Qualys Inc is a renowned player in the software industry, specializing in cloud security and compliance solutions. The company, based in California, serves over 10,000 customers worldwide, primarily small- and medium-sized businesses. With a current market cap of $6.25 billion and a stock price of $170, Qualys has demonstrated robust growth and profitability over the years. 
Profitability Analysis
Qualys Inc's profitability is impressive, with a Profitability Rank of 10/10, indicating a high level of profitability. The company's Operating Margin stands at 27.09%, better than 93.79% of companies in the industry. Furthermore, the company's ROE and ROA are 37.98% and 16.63% respectively, both outperforming the majority of industry peers. The ROIC of 21.67% further underscores the company's ability to generate cash flow relative to the capital invested in its business. Qualys has maintained consistent profitability over the past 10 years, better than 99.96% of companies. 
Growth Prospects
Qualys Inc's growth prospects are equally promising, with a Growth Rank of 10/10. The company's 3-year and 5-year revenue growth rates per share are 16.90% and 16.30% respectively, outperforming a significant portion of industry peers. The future 3-year to 5-year total revenue growth rate estimate stands at 12.78%, better than 57.11% of companies. The company's 3-year and 5-year EPS without NRI growth rates are 18.10% and 19.00% respectively, with a future 3-year to 5-year EPS without NRI growth rate estimate of 16.96%. 
Major Stock Holders
Among the major holders of Qualys Inc's stock are Ron Baron (Trades, Portfolio), holding 146,008 shares (0.4%), Jim Simons (Trades, Portfolio) with 137,600 shares (0.37%), and Joel Greenblatt (Trades, Portfolio), holding 76,243 shares (0.21%). Their significant investments in the company reflect their confidence in its growth and profitability prospects.
Competitive Landscape
Qualys Inc operates in a competitive software industry, with key competitors including Informatica Inc (INFA, Financial) with a market cap of $6.83 billion, SPS Commerce Inc (SPSC, Financial) with a market cap of $6.11 billion, and Affirm Holdings Inc (AFRM, Financial) with a market cap of $6.77 billion. Despite the competition, Qualys has managed to carve out a niche for itself through its innovative solutions and consistent performance.
Conclusion
In conclusion, Qualys Inc's impressive stock performance, high profitability, and robust growth prospects make it a compelling investment. The company's strong market position, coupled with its consistent profitability and growth, bodes well for its future prospects. Investors should keep a close eye on this stock as it continues to demonstrate its potential for further growth and profitability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
