Qnity Electronics, Inc. (Q)
Valuation Overview•Is Qnity Electronics, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 56/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
Q demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 21.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.3B | +9.7% | — | — | — | |
| EBITDA | $397.0M | — | — | — | — | |
| Net Income | $151.0M | -0.1% | — | — | — | |
| EPS (Diluted) | $0.72 | -0.3% | — | — | — | |
| Free Cash Flow | $13.0M | +14.8% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 42.0% | 43.8% | 43.8% | 43.8% |
| Operating Margin | 21.4% | 19.1% | 19.1% | 19.1% |
| Net Margin | 13.1% | 14.4% | 14.4% | 14.4% |
| FCF Margin | 18.1% | 18.9% | 18.9% | 18.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.92 | $1.08 | +17.1% | ||
| Q1'26 | $0.63 | $0.82 | +30.6% | ||
| Q4'25 | $0.66 | $0.74 | +13.0% | ||
| Q2'25 | — | $0.90 | — | ||
| Q1'25 | — | $0.92 | — | ||
| Q2'24 | — | $0.71 | — | ||
| Q1'24 | — | $0.64 | — |
Total return is +66.8% (1Y), outperforming the benchmark by +45.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +87.0% | +79.6% | — |
| 1Y | +66.8% | +45.9% | +0.2% |
| 3YCAGR | +18.6% | -0.1% | +0.2% |
| 5YCAGR | +10.8% | -0.4% | +0.2% |
| 10YCAGR | +5.2% | -8.3% | — |
The S&P 500 is at 31.0x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Qnity Electronics, Inc. (Q) valuation, health, and returns.
Qnity Electronics, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -94.1% downside from DCF intrinsic value of $9.29)
Qnity Electronics, Inc. has multiple valuation anchors: DCF Intrinsic Value: $9.29 | Peer Relative Fair Value: $86.43 | Wall Street Analyst Target: $171.50 (implying +8.3% upside). A convergence of these signals offers higher conviction.
Qnity Electronics, Inc. displays fair financial health with a composite quality score of 56/100, supported by a Altman Z-Score of 3.2 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 6.8%.
Qnity Electronics, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Qnity Electronics, Inc.'s current growth trajectory is Stable. The company achieved +9.7% 1Y revenue growth and -0.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 3 analysts. The consensus price target represents a +8.3% change from current levels.
Investment risks for Qnity Electronics, Inc. include: -27.1% 1-year max drawdown, high beta (2.80x market volatility). Volatility risk is characterized by a beta of 2.80x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.