Latest Ratios: P/E Ratio 33.0x · EV/EBITDA 19.3x · ROE 7.6%. (2023–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Market Cap | $22.8B | $17.1B | — | — |
| Enterprise Value | $26.8B | $21.2B | — | — |
| P/E Ratio → | 32.96 | 24.74 | — | — |
| P/S Ratio | 4.79 | 3.60 | — | — |
| P/B Ratio | 3.09 | 2.32 | — | — |
| P/FCF | 23.05 | 17.31 | — | — |
| P/OCF | 17.89 | 13.44 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| EV / Revenue | — | 4.45 | — | — |
| EV / EBITDA | 19.31 | 15.23 | — | — |
| EV / EBIT | 26.47 | 20.61 | — | — |
| EV / FCF | — | 21.43 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Gross Margin | 41.8% | 41.8% | 46.1% | 43.5% |
| Operating Margin | 21.3% | 21.3% | 19.5% | 16.3% |
| Net Profit Margin | 14.6% | 14.6% | 16.0% | 12.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | 7.6% | 7.6% | 6.3% | 4.5% |
| ROA | 5.3% | 5.3% | 5.6% | 4.1% |
| ROIC | 6.8% | 6.8% | 5.7% | 4.4% |
| ROCE | 8.4% | 8.4% | 7.3% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 0.68 | 0.68 | 0.02 | 0.02 |
| Debt / EBITDA | 3.58 | 3.58 | 0.15 | 0.21 |
| Net Debt / Equity | — | 0.55 | 0.00 | 0.01 |
| Net Debt / EBITDA | 2.92 | 2.92 | 0.02 | 0.08 |
| Debt / FCF | — | 4.11 | 0.03 | 0.13 |
| Interest Coverage | 15.80 | 15.80 | 3.21 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 1.95 | 1.95 | 1.77 | 2.01 |
| Quick Ratio | 1.46 | 1.46 | 1.06 | 1.23 |
| Cash Ratio | 0.67 | 0.67 | 0.20 | 0.21 |
| Asset Turnover | — | 0.34 | 0.35 | 0.32 |
| Inventory Turnover | 4.18 | 4.18 | 3.91 | 4.27 |
| Days Sales Outstanding | — | 76.16 | 57.42 | 59.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | — | — |
| Payout Ratio | 1.9% | 1.9% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | 3.0% | 4.0% | — | — |
| FCF Yield | 4.3% | 5.8% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.1% | 0.1% | — | — |
| Shares Outstanding | — | $209M | $209M | $209M |
Includes 30+ ratios · 3 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying Q stock.
Qnity Electronics, Inc.'s current P/E ratio is 33.0x. The historical average is 24.7x. This places it at the 100th percentile of its historical range.
Qnity Electronics, Inc.'s current EV/EBITDA is 19.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.2x.
Qnity Electronics, Inc.'s return on equity (ROE) is 7.6%. The historical average is 6.1%.
Based on historical data, Qnity Electronics, Inc. is trading at a P/E of 33.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Qnity Electronics, Inc.'s current dividend yield is 0.06% with a payout ratio of 1.9%.
Qnity Electronics, Inc. has 41.8% gross margin and 21.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Qnity Electronics, Inc.'s Debt/EBITDA ratio is 3.6x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Stranded costs and EPS volatility
Metrics are mathematically derived from official filings.
Margin Mix Shift Drives Expansion
Gross margin expanded to 46.6% in 2026Q2 from 41.8% in 2025Q4, as reported in financial statements, indicating a favorable mix shift toward advanced materials. Operating margin, however, contracted to 19.3% from 22.7% sequentially, suggesting cost pressures.
The gross margin improvement likely reflects higher-value advanced packaging and EUV materials, which may be growing faster than the legacy PCB business. Operating margin contraction despite gross margin expansion suggests rising SG&A or R&D costs, possibly related to spin-off stranded costs. Net margin of 8.7% in 2026Q2 is down from 16.5% in 2025Q3, indicating that operating leverage is not flowing through to the bottom line, warranting monitoring of cost discipline.
Returns Compress on Asset Growth
ROIC fell to 1.9% in 2026Q2 from 2.0% in 2026Q1, while ROE declined to 1.7% from 2.0%, based on reported figures. These returns are low relative to peers like Plexus (11.8% ROIC), suggesting capital efficiency is lagging.
The low ROIC and ROE are partly due to the large goodwill balance ($7.5B) from acquisitions, which inflates the capital base. Asset turnover is only 0.10, indicating that the company generates modest revenue relative to its asset base. The recent increase in capex to 6.3% of revenue may improve future efficiency, but current returns suggest that the company is not yet compounding capital effectively. Investors should monitor whether advanced node transitions and packaging growth can lift returns over time.
Working Capital Cycle Lengthens
Cash conversion cycle rose to 66 days in 2026Q2 from 72 days in 2025Q4, as per quarterly data, driven by DSO of 69 days and DIO of 85 days. DPO of 89 days provides some offset, but the cycle remains extended.
The CCC of 66 days is relatively high, indicating that cash is tied up in receivables and inventory for over two months. DSO has been stable around 69-70 days, but DIO increased from 80 days in 2025Q3 to 85 days in 2026Q2, possibly reflecting inventory build-up ahead of demand or shelf-life management. DPO of 89 days suggests the company is using supplier credit effectively, but the overall cycle may pressure cash flow if growth slows. The volatility in working capital, as seen in the cash flow statement, underscores the need for careful inventory management.
Leverage Normalizes After Spin-Off
Debt-to-equity fell to 0.53 in 2026Q2 from 0.68 in 2025Q4, while interest coverage improved to 4.26x, according to balance sheet data. The company maintains a conservative capital structure with low leverage.
The reduction in D/E from 0.68 to 0.53 indicates deliberate deleveraging, likely using cash flow to pay down debt. Interest coverage of 4.26x is adequate but not robust, and D/EBITDA of 10.78x is elevated, suggesting that EBITDA is low relative to debt. However, the near-zero D/E in 2025Q2 (0.02) was likely a spin-off artifact, and the current level is more sustainable. The low leverage provides financial flexibility, but the high D/EBITDA warrants monitoring if EBITDA growth does not materialize.
Liquidity Buffer Remains Comfortable
Current ratio improved to 2.01 in 2026Q2 from 1.95 in 2025Q4, with quick ratio at 1.50, as per balance sheet data. Cash of $961M provides a solid buffer against short-term obligations.
The current ratio above 2.0 indicates that current assets comfortably cover current liabilities, and the quick ratio of 1.50 suggests that even without inventory, the company can meet short-term obligations. This liquidity position is healthy, especially given the low leverage. However, the inventory-heavy nature of the business (DIO of 85 days) means that a sudden demand drop could lead to write-downs, but the current buffer appears sufficient to absorb such shocks.
P/E Misleads on Cyclicality
The P/E of 43.21 may overstate expensiveness because it fails to capture the quasi-recurring consumable revenue model, as reported in financial statements. A more appropriate metric is EV/EBITDA or P/FCF, which better reflect cash generation.
The market often misapplies a cyclical multiple to Qnity, treating it like an equipment maker, but its consumable model provides a higher earnings floor. The forward P/E of 31.86 implies expected earnings growth, but the PEG is unavailable, making it hard to assess growth-adjusted value. EV/EBITDA of 24.40 is high relative to peers like Avnet (13.96) and Arrow (12.52), but this may be justified by the stickier revenue. Investors should focus on EV/EBITDA and P/FCF (30.21) to gauge valuation, as P/E can be distorted by one-off items and spin-off costs.