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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3773
Positioning
Market Dominance
Manufacturing
Electrical Equipment
$7.0B
Jagdeep Singh
QuantumScape focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles. The company was founded in 2010 and is headquartered in San Jose, California.
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| 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 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$QS QuantumScape Corp | 38 | 33 | 47 | 50 | - | - | -37.4% | -33.9% | - | - | - | - | 0.0% | 10.0x | $7.0B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
QuantumScape Corp (QS) receives a "Avoid" rating with a composite score of 38.1/100. It ranks #3773 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Jagdeep Singh
Chief Executive Officer
Labor Force
850
33
25
27
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for QS
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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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.
No analyst ratings for QS.
View All RatingsInsufficient data for Financial Analysis
ROE proxy -37.4% (sector -2.5%)
GM N/A vs sector 43%, OM N/A vs sector 1%
Capital turnover N/A
Rev growth N/A, 6yr history
Interest coverage -228.6x
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.
Our quantitative model flags QuantumScape Corp with an Avoid rating, assigning a composite score of 38.1/100 and 1 out of 5 stars. Ranked #3773 of 7,333 stocks, QS falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
QS's quality score of 33/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -37.4% (sector avg: -2.5%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 47/100, QS appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 3.40x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
QuantumScape Corp's investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of -33.9% (sector: -0.1%). 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.
QS demonstrates moderate momentum with a score of 50/100, suggesting a neutral price trend without strong directional conviction. Revenue growth data is not currently available, while a beta of 1.73 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
QS's stability score of 27/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.73 and a debt-to-equity ratio of 10.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 42/100 for QS suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.73), elevated leverage (D/E: 10.00x). With a $7.0B market cap (mid-cap), QuantumScape Corp may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
QuantumScape Corp is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3773 of 7,333 overall (49th percentile). Key comparisons include ROE of -37.4% trailing the -2.5% sector median. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While QS currently exhibits a AVOID 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 (25) would have the largest impact on the composite score.
ROE 1408% ABOVE SECTOR MEDIAN (FAVORABLE)
Debt/Equity 4900% ABOVE SECTOR MEDIAN
Div. Yield NaN% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate QuantumScape Corp (QS) as Avoid with a composite score of 38.1/100 at a current price of $7.04. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in momentum (50th percentile) and value (47th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (25th percentile) and stability (27th percentile) tempers our overall conviction. We assign a No Moat rating (22/100), High uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
QuantumScape Corp 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 38.1/100 places it at rank #3773 in our full 7,333-stock universe. At $7.0B in market capitalization, QuantumScape Corp is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (50th percentile) are neutral regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
Margin data is not available for QuantumScape Corp, which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.
At a current price of $7.04, QuantumScape Corp is trading near fair value based on current fundamentals. Our value factor score of 47/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at P/B of 3.4x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (10% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Avoid rating (composite 38.1/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Below-average quality (33th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 1.73 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
We assign a High uncertainty rating to QuantumScape Corp. Key risk factors include elevated market sensitivity (beta of 1.73), below-average price stability (27th percentile), weak quality scores (33th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.73); below-average price stability (27th percentile); weak quality scores (33th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 27th percentile and quality factor at the 33th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (10% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate QuantumScape Corp's capital allocation as Poor. Key concerns include low returns on equity (-37.4%), weak asset returns (ROA -33.9%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — QuantumScape Corp significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, QuantumScape Corp receives a Avoid rating with a composite score of 38.1/100 (rank #3773 of 7,333). Our quantitative framework assigns a No Moat (22/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 36/100.
Our analysis does not support a constructive view on QuantumScape Corp at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign QuantumScape Corp a meaningful economic moat, scoring 22/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 10/20.
The strongest moat sources are margin superiority (10/20) and financial resilience (9.1/20). GM N/A vs sector 43%, OM N/A vs sector 1%. Interest coverage -228.6x. These pillars form the core of QuantumScape Corp's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and growth durability (0/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect QuantumScape Corp's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers are not clearly identifiable from current fundamentals. This may reflect a company in transition, a cyclical downturn, or structural challenges in the business model. We assign a quality factor of 33/100 which further underscores our concern regarding earnings sustainability.
Return metrics include ROE of -37.4% and ROA of -33.9%. Relative to the Manufacturing sector, sector comparison data is limited, and ROE of -37.4% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 10%. The sector median D/E is 0%, putting QuantumScape Corp at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
QuantumScape (QS) stock extends a steep slide after earnings.
QuantumScape is making significant progress with its QSE5 solid-state battery technology, demonstrating potential for higher energy density and faster charging in electric vehicles, though full commercialization remains years away.
QuantumScape is approaching a critical milestone in 2026 as its solid-state battery technology moves into real vehicle testing. The company faces significant catalysts that could drive substantial upside if successful, but also carries considerable risks if development falters.
QuantumScape stock surged 100.8% in 2025 following key milestones in commercializing its solid-state battery technology, including expanded partnerships with Volkswagen's PowerCo, agreements with Corning and Murata Manufacturing, and initial sample shipments to customers. The company is now setting up an automated pilot production line (Eagle Line) in California. However, the stock remains highly risky with binary outcomes: success could make QuantumScape a leading EV battery supplier, but competition or production issues could cause significant losses.
The driverless vehicle market is projected to reach $13 trillion by 2030, with three key stocks positioned to benefit: Ambarella, Nvidia, and QuantumScape. Each company offers unique technological advantages in autonomous vehicle development, from AI processing to computing platforms and advanced battery technology.