A Business at a Glance
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Qnity Electronics, Inc.
Q
$28.3B
Mkt Cap
$135.06
-2.60%
Qnity Electronics, Inc. (Q) has a current P/E ratio of 40.9, compared to its historical median P/E of 25.5. The stock is currently considered Expensive based on its historical valuation range.
Qnity Electronics, Inc. (Q) has a 5-year average return on invested capital (ROIC) of 69.8%. This indicates strong capital allocation and a potential competitive advantage.
Qnity Electronics, Inc. (Q) has a market capitalization of $28.3B. It is classified as a large-cap stock.
Yes, Qnity Electronics, Inc. (Q) pays a dividend with a trailing twelve-month yield of 0.05%.
Based on historical P/E analysis, Qnity Electronics, Inc. (Q) appears expensive. The current P/E of 40.9 is 60% above its historical median of 25.5.
Qnity Electronics, Inc. (Q) operates in the Semiconductors & Related Devices industry, within the Technology sector.
Qnity Electronics, Inc. (Q) reported annual revenue of $4.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Qnity is a global leader in advanced materials and solutions for the semiconductor and electronics industries, serving customers across data centers, communications infrastructure, industrials, automotive, and consumer electronics. The company operates two segments: Semiconductor Technologies, which provides chemical mechanical planarization (CMP) slurries and pads, photoresists, cleaning chemistries, lithographic materials, specialized sealants, and advanced display materials used across multiple stages of semiconductor manufacturing; and Interconnect Solutions, which offers metallization chemistries, thermal and electromagnetic interference management solutions, flexible circuit materials, and advanced packaging materials for printed circuit boards and semiconductor packaging. Qnity's business model is consumable and unit-driven, with over 90% of revenue generated from products either utilized in manufacturing processes or incorporated into final electronic devices, creating recurring revenue streams tied to wafer production volumes and advanced node transitions. The company benefits from the "processing material multiplier" effect, whereby advanced semiconductor nodes require three to five times more processing material per wafer compared to legacy nodes, and maintains competitive advantages through over 50 years of systems engineering and materials science expertise, a global manufacturing footprint, major application labs, strong innovation capabilities, and long-standing customer relationships with leading semiconductor device manufacturers, foundries, equipment providers, and original equipment manufacturers.
【Advanced node-driven growth momentum】 Management expects continued strong demand driven by artificial intelligence, high-performance computing, and advanced connectivity applications, with semiconductor fab utilization rates improving across logic and memory segments throughout 2026. Advanced packaging is positioned as a core multi-year growth driver as the industry transitions from shrink-based to stack-based architectures, requiring larger package sizes, higher layer counts, and increased Qnity content per device. The company anticipates MSI wafer starts to grow mid-single to high single digits in 2026, supported by substantial global investment in advanced node capacity and supply chain resilience initiatives. Management is making targeted pricing actions to offset geopolitical inflation and logistics cost headwinds while maintaining disciplined capital allocation, with elevated CapEx investments in 2026 to support local-to-local manufacturing footprint expansion and transformation initiatives expected to deliver approximately $100 million in EBITDA run-rate benefits by end of 2028.
| Metric | Target | Period |
|---|---|---|
| Net sales | $5.225 billion–$5.375 billion | FY2026 |
| Adjusted operating EBITDA | $1.535 billion–$1.625 billion | FY2026 |
| Adjusted earnings per share | $3.80–$4.14 | FY2026 |
| Adjusted free cash flow | $500 million–$600 million | FY2026 |
Net sales (FY2026): “Net sales is now expected to be $5.225 billion-$5.375 billion, a 5% increase at the midpoint.”
Adjusted operating EBITDA (FY2026): “Adjusted operating EBITDA is now expected to be $1.535 billion-$1.625 billion, a 4% increase at the midpoint.”
Adjusted earnings per share (FY2026): “Adjusted earnings per share is now expected to be $3.80-$4.14, a 6% increase at the midpoint.”
Adjusted free cash flow (FY2026): “Finally, adjusted free cash flow is now expected to be $500 million-$600 million, a 10% increase at the midpoint.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue | 4.8B | 4.8B | 4.3B | 4.0B |
| Net Income | 692M | 692M | 693M | 507M |
| EPS | $3.30 | $3.30 | $3.31 | $2.42 |
| Free Cash Flow | 988M | 988M | 861M | 651M |
| ROIC | 6.9% | 6.9% | 6.4% | 196.0% |
| Gross Margin | 46.2% | 46.2% | 46.0% | 43.5% |
| Debt/Equity | 0.65 | 0.65 | 0.05 | - |
| Dividends/Share | $0.06 | $0.06 | $0.00 | $0.00 |
| Operating Income | 990M | 990M | 870M | 609M |
| Operating Margin | 20.8% | 20.8% | 20.1% | 15.1% |
| ROE | 9.8% | 7.8% | 6.5% | - |
| Shares Outstanding | 210M | 210M | 209M | 210M |
| Metric | 2024 | |||
|---|---|---|---|---|
| Income Statement | ||||
| Revenue | 4.0B | 4.3B | 4.8B | 4.8B |
| Gross Margin | 43.5% | 46.0% | 46.2% | 46.2% |
| R&D | 303M | 314M | 354M | 354M |
| SG&A | 533M | 603M | 620M | 620M |
| EBIT | 609M | 870M | 990M | 990M |
| Op. Margin | 15.1% | 20.1% | 20.8% | 20.8% |
| Net Income | 507M | 693M | 692M | 692M |
| Net Margin | 12.6% | 16.0% | 14.6% | 14.6% |
| Non-Recurring | 112M | 8.0M | 41M | 41M |
| Returns on Capital | ||||
| ROIC | 196.0% | 6.4% | 6.9% | 6.9% |
| ROE | N/A | 6.5% | 7.8% | 9.8% |
| ROA | 193.5% | 5.6% | 5.3% | 4.9% |
| Cash Flow | ||||
| Op. Cash Flow | 882M | 1.1B | 1.3B | 1.3B |
| Free Cash Flow | 651M | 861M | 988M | 988M |
| Owner Earnings | 466M | 654M | 877M | 877M |
| CapEx | 231M | 200M | 285M | 285M |
| Maint. CapEx | 403M | 394M | 376M | 376M |
| Growth CapEx | 0 | 0 | 0 | 0 |
| D&A | 403M | 394M | 376M | 376M |
| CapEx/OCF | N/A | N/A | 22.4% | 22.4% |
| Capital Allocation | ||||
| Dividends Paid | 0 | 0 | 13M | 13M |
| Dividend Yield | N/A | N/A | 0.1% | 0.0% |
| Share Buybacks | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | 0.0% |
| Stock-Based Comp | 13M | 13M | 20M | 20M |
| Debt Repayment | 0 | 0 | 88M | 88M |
| Balance Sheet | ||||
| Net Debt | -139M | 206M | 3.7B | 3.7B |
| Cash & Equiv. | 139M | 166M | 915M | 915M |
| Long-Term Debt | 0 | 538M | 4.1B | 4.1B |
| Debt/Equity | N/A | 0.05 | 0.65 | 0.65 |
| Interest Coverage | 203.0 | N/A | 15.2 | 15.2 |
| Equity | N/A | 10.6B | 7.1B | 7.1B |
| Total Assets | 262M | 12.3B | 14.1B | 14.1B |
| Total Liabilities | N/A | 1.4B | 6.7B | 6.7B |
| Intangibles | N/A | 1.3B | 1.1B | 1.1B |
| Retained Earnings | N/A | 0 | 18M | 18M |
| Working Capital | N/A | 644M | 1.3B | 1.3B |
| Current Assets | N/A | 1.5B | 2.6B | 2.6B |
| Current Liabilities | N/A | 839M | 1.4B | 1.4B |
| Per Share Data | ||||
| EPS | 2.42 | 3.31 | 3.30 | 3.30 |
| Owner EPS | 2.22 | 3.12 | 4.18 | 4.18 |
| Book Value | N/A | 50.84 | 33.83 | 33.83 |
| Cash Flow/Share | 4.21 | 5.07 | 6.07 | 5.09 |
| Dividends/Share | 0.00 | 0.00 | 0.06 | 0.06 |
| Shares Out. | 209.5M | 209.4M | 209.7M | 209.7M |
| Valuation | ||||
| P/E Ratio | N/A | N/A | 25.5 | 40.9 |
| P/FCF | N/A | N/A | 17.9 | 28.7 |
| EV/EBIT | N/A | N/A | 17.4 | 32.4 |
| Price/Book | N/A | N/A | 2.5 | 4.0 |
| Price/Sales | N/A | N/A | 3.7 | 6.0 |
| FCF Yield | N/A | N/A | 5.6% | 3.5% |
| Market Cap | 0 | N/A | 17.6B | 28.3B |
| Avg. Price | 0.00 | N/A | 84.98 | 135.06 |
| Year-End Price | 0.00 | N/A | 84.16 | 135.06 |
Qnity Electronics, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Qnity Electronics, Inc. trades at 40.9x trailing earnings, compared to its 15-year median P/E of 25.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 28.7x vs a median of 17.9x. The company's 5-year average ROIC is 69.8% with a gross margin of 45.2%.
Qnity Electronics, Inc. (Q) has a net profit margin of 14.6%. This is a healthy margin.
Qnity Electronics, Inc. (Q) generated $988 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Qnity Electronics, Inc. (Q) has a debt-to-equity ratio of 0.65. This indicates moderate leverage.
Qnity Electronics, Inc. (Q) reported earnings per share (EPS) of $3.30 in its most recent fiscal year.
Qnity Electronics, Inc. (Q) has a return on equity (ROE) of 7.8%. This indicates moderate shareholder returns.
Qnity Electronics, Inc. (Q) has a 5-year average gross margin of 45.2%. This indicates decent pricing power.
The Ledger Terminal provides 3 years of financial data for Qnity Electronics, Inc. (Q), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Qnity Electronics, Inc. (Q) has a book value per share of $33.83, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong demand driven by artificial intelligence, high-performance computing, and advanced connectivity applications, with semiconductor fab utilization rates improving across logic and memory segments throughout 2026. Advanced packaging is positioned as a core multi-year growth driver as the industry transitions from shrink-based to stack-based architectures, requiring larger package sizes, higher layer counts, and increased Qnity content per device. The company anticipates MSI wafer starts to grow mid-single to high single digits in 2026, supported by substantial global investment in advanced node capacity and supply chain resilience initiatives. Management is making targeted pricing actions to offset geopolitical inflation and logistics cost headwinds while maintaining disciplined capital allocation, with elevated CapEx investments in 2026 to support local-to-local manufacturing footprint expansion and transformation initiatives expected to deliver approximately $100 million in EBITDA run-rate benefits by end of 2028.
Based on recent SEC filings and earnings calls, Qnity Electronics, Inc. (Q) has provided the following forward guidance: Net sales: $5.225 billion–$5.375 billion (FY2026); Adjusted operating EBITDA: $1.535 billion–$1.625 billion (FY2026); Adjusted earnings per share: $3.80–$4.14 (FY2026); Adjusted free cash flow: $500 million–$600 million (FY2026).