Qnity Electronics, Inc. (Q)
Information Technology · Semiconductor Materials & Equipment · US stock · S&P 500 component
$108.78
▼ -11.39 (9.48%)
Fair valueFair
$112 +2.5% to fair value
$56fair band $95–$135$167
Day's range
$108.10 – $116.75
52-week range
$70.50 – $177.28
About Qnity Electronics, Inc.
Qnity Electronics supplies specialty materials and process technologies used to make semiconductors and advanced electronic circuits. Its products include materials used in chip fabrication, such as polishing pads and slurries, plus packaging and circuit-board materials. Customers are chip makers, electronics manufacturers and equipment suppliers, who use them in advanced chips for computing, data centres and communications.
Qnity earns revenue by supplying these materials to electronics customers, often as consumables used repeatedly in production. Revenue is $5.2 billion over the last twelve months, and the operating margin is 16.9%. The business earns a profit of 6% on the capital invested in it, and it carries net debt of 2.8 times EBITDA. The dividend yield is 0.3%. On the site's X-Ray Score it receives 41 out of 100.
Price chart
52-wk range $70.50 – $177.28Volume 2,936,239Daily, split-adjusted
Vitals
Market cap$22.9B
52-week range$70.50 – $177.28
Volume (last day)2,936,239
P/E (TTM)35.3
EBIT / EV yield3.3%
Free-cash-flow yield3.6%
Dividend yield0.3%
Revenue (TTM)$5.2B
Net income (TTM)$646M
Operating margin16.9%
Return on capital5.8%
Debt incl. leases$4.5B
Cash & securities$961M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$112middle half of models $88 – $134
Fair
+2.5% to fair value
Average of the 11 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $109
Undervalued < $95Fair $95 – $135Overvalued > $135
P/E multiple
$109
P/B multiple
$169
P/S multiple
$169
EV/EBITDA multiple
$125
EV/EBIT multiple
$113
EV/revenue multiple
$143
10-year DCF, EBITDA exit
$81
5-year DCF, EBITDA exit
$96
10-year DCF, revenue exit
$81
5-year DCF, revenue exit
$97
10-year DCF, growth exit · not used
$27
5-year DCF, growth exit · not used
$25
Earnings power value
$45
Growth the price implies
29.9%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
56/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield3.3%
Free-cash-flow yield3.6%
Fair value vs price1.0×
Growth
Weak
38/100
Growing slower than most of its sector.
See the numbers →
Profitability
Weak
32/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital5.8%
Operating margin16.9%
Gross profitability16.8%
Financial health
Weak
36/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA2.8×
Interest coverNo interest cost
Dividends
Weak
39/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield0.3%
Dividends vs free cash flow8%
Quarterly results: last 6 quarters
–
Mar '25
–
Jun '25
–
Sep '25
+3.7%
Dec '25
+17.6%
Mar '26
+22.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.4B, diluted EPS $0.59.
Compare with peers
LRCX Lam Research Corp58 KLAC Kla Corp50 AMAT Applied Materials Inc49 TER Teradyne, Inc47Other Semiconductor Materials & Equipment companies by X-Ray Score.
SWOT analysis: Qnity Electronics, Inc.
Strengthsinside the company
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 5.8% (median 42.3% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 16.9% is thin against 32.8% for industry peers.
Opportunitiesvaluation and setting
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- The price trend is down on the daily and weekly signals.
- Earnings in Semiconductor Materials & Equipment follow the industry cycle, so margins and profits can swing from year to year.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare Q with peers and sector
Medians of 4 Semiconductor Materials & Equipment peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): AMAT 49, LRCX 58, KLAC 50, TER 47.
| Metric | Q | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 41 | 50 | 50 |
| Valuation | 56 | 34 | 50 |
| Growth | 38 | 32 | 54 |
| Profitability | 32 | 64 | 50 |
| Financial health | 36 | 72 | 50 |
| Dividends | 39 | 52 | 51 |
Sector leaders: highest X-Ray Score in Information Technology
Q ranks #57 of 75 in Information Technology and #5 of 5 in Semiconductor Materials & Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for Q
Each factor is rated by where Q stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 4 Good · 9 Average · 7 Bad of 20
Growth: 0 · 1 · 0
Profitability: 0 · 2 · 3
Financial strength: 1 · 1 · 2
Valuation: 2 · 3 · 0
Cash flow: 1 · 1 · 1
Efficiency: 0 · 1 · 1
| Factor | Q | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, last year | +9.7% | Average beats 38% | +13.7% | – | – |
| Profitability | |||||
| Gross margin | 46.2% | Bad beats 29% | 57.8% | 46.0% | ≈ In line |
| Operating margin | 16.9% | Average beats 39% | 20.3% | 20.2% | ▼ Worse |
| Net margin | 12.4% | Average beats 39% | 17.8% | 15.3% | ▼ Worse |
| Return on invested capital | 5.8% | Bad beats 10% | 19.4% | – | – |
| Return on equity | 8.9% | Bad beats 19% | 21.0% | 6.8% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 2.8x | Bad beats 10% | 0.8x | – | – |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 2.01 | Average beats 63% | 1.57 | – | – |
| Piotroski F-score | 5 / 9 | Bad beats 21% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 35.4x | Average beats 45% | 33.6x | – | – |
| Price / book | 3.1x | Good beats 85% | 8.3x | – | – |
| Price / sales | 4.4x | Good beats 70% | 6.9x | – | – |
| EV / EBITDA | 21.2x | Average beats 60% | 24.7x | – | – |
| Free cash flow yield | 3.6% | Average beats 54% | 3.4% | – | – |
| Cash flow | |||||
| Free cash flow margin | 15.8% | Bad beats 23% | 22.3% | 19.9% | ▼ Worse |
| Cash from operations / net income | 1.81 | Good beats 72% | 1.39 | 1.65 | ≈ In line |
| Accruals (lower is better) | −3.6% | Average beats 43% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 3.8x | Average beats 49% | 3.9x | – | – |
| Days sales outstanding | 80 days | Bad beats 24% | 63 days | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 1 Good · ● 6 Average · ● 5 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
Balance sheet
Current ratioAverage
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginAverage
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 41/100.
Financials
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Revenue | $4.0B | $4.3B | $4.8B |
| Operating income | $632M | $901M | $962M |
| Net income | $533M | $724M | $729M |
| Operating cash flow | $882M | $1.1B | $1.3B |
| Operating margin | 15.7% | 20.8% | 20.2% |
| Free cash flow | $651M | $861M | $988M |
| Diluted EPS | $2.42 | $3.31 | $3.30 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
3 bullish · 1 neutral · 11 bearish
Weekly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Monthly
Neutral
1 bullish · 0 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 119.6 | Bearish |
| EMA 10 | 118.9 | Bearish |
| SMA 20 | 123.9 | Bearish |
| EMA 20 | 121.4 | Bearish |
| SMA 50 | 124.4 | Bearish |
| EMA 50 | 125.4 | Bearish |
| SMA 100 | 134.7 | Bearish |
| EMA 100 | 128.5 | Bearish |
| SMA 200 | 128.4 | Bearish |
| EMA 200 | – | n/a |
Oscillators (daily)
| RSI (14) | 31.44 | Neutral |
| MACD (12, 26) | -2.64 | Bearish |
| Momentum (12) | -18.60 | Bearish |
| Stochastic %K (14) | 2.64 | Bullish |
| Williams %R (14) | -97.36 | Bullish |
| CCI (20) | -192.2 | Bullish |
Pivot points (classic, last session)
S3 97.02 | S2 102.6 | S1 105.7 | Pivot 111.2 | R1 114.3 | R2 119.9 | R3 123.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.30 USD
Yield on today's price
0.28%
Frequency
Quarterly
Next ex-dividend date
30 Nov 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.0800 |
| 0.0800 | |
| 0.0800 | |
| 0.0800 | |
| 0.0600 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold Q
| ETF | Share of the fund |
|---|---|
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.28% |
| DON WisdomTree U.S. MidCap Dividend | 0.48% |
| VBR Vanguard Small-Cap Value | 0.37% |
| IWS iShares Russell Mid-Cap Value | 0.34% |
| FMDE Fidelity Enhanced Mid Cap | 0.32% |
| VOE Vanguard Mid-Cap Value | 0.29% |
| ROCY JPMorgan Equity Premium Yield | 0.29% |
| IWR iShares Russell Mid-Cap | 0.25% |
The eight funds with the largest weight in Q among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
Q SEC filings
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.