Qnity Electronics (Q)
Information Technology · $25.5B market cap · SEC CIK 0002058873
fundamentals score out of 100
No earnings date is scheduled in the next few months.
The case for Q
- Generated $988M of free cash flow in FY2025, 21% of revenue.
- Revenue growing 17.6% year over year.
- Current assets cover the near-term bills 2.0 times over.
The case against
- Earnings per share down 22.1%.
- Pricey at 43.5× earnings, against a long-run market average nearer 20×.
- Swings harder than the market (beta 1.58).
- Return on equity of only 8%.
- The price trend is weak (33/100): -27.9% over three months, 51% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 48 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 31 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 33 |
| Stabilityhow violently it moves, what it owes and what it pays you | 32 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 43.5× |
|---|---|
| Price / book | 4.71× |
| Price / sales | 4.9× |
| Revenue growth (YoY) | +17.6% |
| EPS growth (YoY) | -22.1% |
| Gross margin | 46% |
| Operating margin | 21% |
| Net margin | 11% |
| Return on equity | 8% |
| Debt / equity | 0.55× |
| Current ratio | 2.01 |
| Dividend yield | none |
| Beta | 1.58 |
| 52-week range | $70.50 – $177.28 |
| Position in that range | 51% of the way up |
| 3-month return | -27.9% |
| 1-year return | — |
Five years of financials, as filed
Pulled from Qnity Electronics's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | |
|---|---|---|---|
| Revenue | $4.8B | $4.3B | $4.0B |
| Net income | $729M | — | — |
| Operating cash flow | $1.3B | $1.1B | $882M |
| Capital expenditure | $285M | $200M | $231M |
| Total assets | $14.1B | $12.3B | — |
| Total liabilities | $6.7B | $1.4B | — |
| Shareholder equity | $7.1B | $10.6B | — |
| Cash | $915M | $166M | — |
| Long-term debt | $4.1B | — | — |
| Free cash flow | $988M | $861M | $651M |
| Net margin | 15.3% | — | — |
| Diluted shares | 210M | 209M | 209M |
Share count is essentially flat over 2 years.
What Qnity Electronics says it does
Our Company Qnity is one of the largest global leaders in materials and solutions for the semiconductor and electronics industries. We empower our customers’ technology roadmaps to enable advancements in megatrends such as artificial intelligence, high-performance computing and advanced connectivity. We partner with leading semiconductor and advanced device manufacturers to address complex challenges and develop solutions that facilitate next-generation technological innovations. With over 50 years of experience in systems engineering and material science, a global manufacturing footprint and major application labs across the world, we are well-positioned to capitalize on emerging opportunities across various sectors including data centers, communications infrastructure, industrials, automotive, and consumer electronics. On May 22, 2024, DuPont de Nemours, Inc. ("DuPont" or "Parent") announced its plan to separate Qnity from DuPont…
Risk factors Q lists in its 10-K
- Design wins with new and existing customers
- Fluctuations in the demand for semiconductors and the overall volume of semiconductor manufacturing may decrease demand for our products and may adversely affect our business"
- Certain Indemnification Obligations to DuPont
- Sales Variances by Segment and Geographic Region
- For the Year Ended December 31, 2025
- For the Year Ended December 31, 2024
- Research and Development ("R&D") Expense
- Selling, General and Administrative ("SG&A") Expenses
- Restructuring and Asset Related Charges - Net
- Acquisition, Integration and Separation Costs
- Equity in Earnings of Nonconsolidated Affiliates
- Change in Net Sales from Prior Period due to
- Cash Flows provided by Operating Activities
- Cash Flows used for Investing Activities