Equity Research Analysis: Qnity Electronics, Inc. (Q)
|Blank Capital Research Unit|Spot: $116.60
Price$116.60
Composite Score45.6/100
RatingREDUCE (2★)
Rank#2707 OF 7,333
Market Cap$0
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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2707
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$0
Jon D. Kemp
Qnity Electronics, Inc. provides materials and solutions to the semiconductor and electronics industries in the United States, rest of Americas, Europe, the Middle East, Africa, Asia Pacific, China, South Korea, Taiwan, and internationally. The company was incorporated in 2024 and is headquartered in Wilmington, Delaware.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = Q ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$Q Qnity Electronics, Inc. | 46 | 51 | 25 | 35 | 110.5x | 19.7x | 9.8% | 7.1% | 45.1% | 21.3% | 17.5% | 11.2% | 0.0% | 19.0x | $0 | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Qnity Electronics, Inc. (Q) receives a "Reduce" rating with a composite score of 45.6/100. It ranks #2707 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for Q.
View All RatingsROIC 13.8% vs WACC 9.1% (spread +4.7%)
GM 45% vs sector 44%, OM 21% vs sector 3%
Capital turnover 0.80x, R&D intensity 7.2%
Rev growth 11%
Interest coverage 19.4x, Net debt/EBITDA 5.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Qnity Electronics, Inc. (Q) as a Reduce with a composite score of 45.6/100 at a current price of $116.60. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Qnity Electronics, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.6/100 places it at rank #2707 in our full universe.
Narrow
Medium
Standard
Fair Value
Gross margins of 45% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 110.5x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Qnity Electronics, Inc. represents a reduce based on multi-factor quantitative performance.
Qnity Electronics, Inc. receives a Reduce rating from our analysis, with a composite score of 45.6/100 and 2 out of 5 stars, ranking #2707 out of 7,333 stocks. Q's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 51/100, Q shows adequate but unremarkable business quality. The company reports a return on equity of 9.8% (sector avg: -1.9%), gross margins of 45.1% (sector avg: 44.1%), net margins of 17.5% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
Q registers a value score of just 25/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 110.48x, an EV/EBITDA of 19.69x, a P/B ratio of 2.61x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Qnity Electronics, Inc.'s investment score of 22/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 11.2% vs. a sector average of 6.7% and a return on assets of 7.1% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Q is currently showing below-average momentum at 35/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 11.2% year-over-year, while a beta of 2.97 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 54/100, Q exhibits average financial resilience. Key stability metrics include a beta of 2.97 and a debt-to-equity ratio of 19.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Q carries a short interest score of 62/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include high market sensitivity (beta: 2.97), elevated leverage (D/E: 19.00x), micro-cap liquidity risk. At $0 market cap (micro-cap), Qnity Electronics, Inc. offers reasonable institutional liquidity.
Qnity Electronics, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2707 of 7,333 overall (63rd percentile). Key comparisons include ROE of 9.8% exceeding the -1.9% sector median and operating margins of 21.3% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While Q currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (22) would have the largest impact on the composite score.
EV/EBITDA 72% ABOVE SECTOR MEDIAN
ROE 615% BELOW SECTOR MEDIAN
Gross Margin IN LINE WITH SECTOR BENCHMARKS
Above 50MA
37.18%
Net New Highs
+51081
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