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Qnity Electronics, Inc. (Q) stock analysis

QNYSESemiconductors & Related DevicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 7/3021% above fair value
$126.57+2.93 (+2.37%)

Close on Nov 11, 2026Market cap $26.48BP/E 47.8Yield 0.11%

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth3Performance0Health2Dividend2

Weak7 of 30 checks passed

Qnity Electronics passes 7 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
3/6
Past performance
0/6
Financial health
2/6
Dividend
2/6

What stands out

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 28.3% of total debt.

  • Guidance raised

    Qnity Electronics raised its full year 2026 Adjusted EPS outlook on Aug 4, 2026.

  • Covered by free cash flow

    Dividends take 8.1% of free cash flow.

  • Growing faster than the industry

    Revenue grew 17.7% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

What to watch

  • Margin of safety under 20%

    The price is 20.8% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $126.57 is above our fair value estimate of $104.77.

  • High debt

    Debt is 52.9% of shareholders' equity, above the 40% we consider low.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.88; above 3 is the safe zone and below 1.8 the distress zone.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    Qnity Electronics's P/E of 47.8 is above the Electronic Components and Accessories median of 34.8.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Qnity Electronics's price-to-book of 3.49 is above the Electronic Components and Accessories median of 3.49.

  • Trading above fair value

    The share price of $126.57 is above our fair value estimate of $104.77.

  • Margin of safety under 20%

    The price is 20.8% above fair value, so there is no margin of safety.

Growth3/6

  • Revenue growth over 3 years

    Needs three years of positive revenue.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 17.7% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

  • Guidance raised

    Qnity Electronics raised its full year 2026 Adjusted EPS outlook on Aug 4, 2026.

  • Gross margin improving

    Gross margin was 46.9% over the last twelve months, against 46.3% a year earlier.

Past performance0/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health2/6

  • High debt

    Debt is 52.9% of shareholders' equity, above the 40% we consider low.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 28.3% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets cover short-term debts

    Current assets are 2.09 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.88; above 3 is the safe zone and below 1.8 the distress zone.

Dividend2/6

  • Pays a dividend

    Qnity Electronics paid dividends worth 0.2% of the share price over the last twelve months.

  • Yield below Treasuries

    The 0.2% yield is below the 4.4% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 3.8% or more; Qnity Electronics yields 0.2%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Earnings cover

    Needs dividends paid and net income.

  • Covered by free cash flow

    Dividends take 8.1% of free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$104.77

The share price is 21% above this estimate.

20%+ below
Near fair value
20%+ above
$126.57Price$104.77Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E34.8×–34.8×$92.3347%
EV/EBITDA21.3×–21.3×$112.7641%
P/B3.5×–3.5×$126.5712%
Earnings powerleft out, too far from the others12.8% cost of equity––$31.08–
Fair value$104.77100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Electronic Components and Accessories median 21.3

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$237.66M
Value traded per 1% price move
$92.59M

Downside

Medium risk

Typical loss in a bad month
18.8%
Volatility (annualized)
56%
Sharpe ratio, 1 year
0.48
Beta to the S&P 500 (5Y)
1.59

Margins

Share of revenue, fiscal years 2023 to 2025

Gross margin

46.2%

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