Qnity Electronics (Q)

Information Technology · $26.1B market cap · SEC CIK 0002058873

No earnings date is scheduled in the next few months.

52-week range $72.81 to $177.28. 30% below its 52-week high and 70% above its low.

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 for its growth: 44.6× earnings, where 18% a year of growth would justify about 34×.
• Return on equity of only 8%.
• Swings harder than the market (beta 1.53).

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Qnity Electronics's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• You should carefully consider the following risks and other information in this Annual Report on Form 10-K in evaluating us and our common stock
• Our results are affected by competitive conditions and customer preferences
• 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
• A large percentage of our net sales are generated from our international operations and are subject to economic, geopolitical, foreign exchange and other risks
• We are subject to a variety of rapidly evolving environmental laws and regulations that could cause us to incur significant liabilities and expenses and subject us to environmental litigation
• Supply chain and operational disruptions and volatility in energy and raw material costs could adversely impact our sales and earnings and impact access to sources of liquidity
• If we do not successfully execute our go-to-market strategy, our business and financial performance may suffer
• Changes in the global and local tax regulatory environments in, and the distribution of income among, the various jurisdictions in which we operate, could adversely impact our results of operations
• Our reliance on certain key customers, contract manufacturers and suppliers could adversely affect our overall sales and profitability
• Risks related to trade disputes, regulations and policies could have an adverse impact on our operations and reduce the competitiveness or availability of our products relative to local and global competitors
• Our business, results of operations and reputation could be adversely affected by industry-specific risks, including process safety, product stewardship and regulatory compliance issues
• Our revenues and operating results have fluctuated in the past and may do so in the future, which could impact our stock price
• Enforcing our intellectual property rights, or defending against intellectual property claims asserted by others, could adversely affect our business, results of operations, financial condition and cash flows
• Failure to effectively manage acquisitions, divestitures, partnerships and other portfolio actions could adversely impact our business, results of operations, financial condition and cash flows
• We may not be able to access the capital and credit markets on terms that are favorable to us, or at all
• We may be unable to achieve some or all of the benefits that we expect to achieve from the Spin-Off
• We have incurred indebtedness in connection with the Spin-Off
• We may have received better terms from unaffiliated third parties than the terms received in the commercial agreements we and/or certain of our subsidiaries will enter into with DuPont and/or certain of its subsidiaries
• We agreed to numerous restrictions to preserve the tax-free treatment of the Spin-Off, which may reduce our strategic and operating flexibility
• We are subject to certain restrictions in the Corteva Side Letter, which may restrict our ability to pursue our business strategies
• Restrictions under our Intellectual Property Cross-License Agreement with DuPont will limit our ability to prosecute, maintain and enforce certain intellectual property
• We cannot be certain that an active trading market for our common stock will be sustained and our stock price may fluctuate significantly
• A large number of shares of our common stock are or will be eligible for future sale, which may cause our stock price to decline
• Our stockholders’ percentage of ownership in Qnity may be diluted in the future
• Our Series A Preferred Stock has separate voting rights over certain potentially material matters and transactions, and the Trust is required to vote against such matters and transactions

Filings

Other Information Technology companies