IonQ Inc. (IONQ) Fundamental Analysis 🧬
- Financial Performance:
- Revenue Growth: IonQ's total revenue grew by 96.71% over the last three years, reaching $7.57 million in the most recent quarter1. This indicates a strong revenue trajectory, although the year-over-year growth rate was negative by 0.21% in the most recent quarter2.
- Net Income Growth: The company's net income improved significantly, growing by 18.54% year-over-year, reaching -$32.25 million in the most recent quarter2. This shows a trend towards profitability, despite the negative net income figure.
- Earnings Per Share (EPS): The diluted EPS was -$0.14 in the most recent quarter, which represents a 26.32% year-over-year growth2. This suggests that the company's losses are decreasing relative to its share count.
IONQ Total Revenue, Net Income...
- Stock Valuation Metrics:
- IonQ's P/E ratio is 228.12, indicating that the stock is trading at a premium compared to the industry average3. This could be due to the high growth expectations in the quantum computing sector.
- The P/S ratio is 10.54, suggesting that the stock is relatively expensive compared to sales3.
- The P/B ratio is 1.67, which is moderate and suggests a reasonable valuation based on book value3.
- Cash Flow and Liquidity:
- IonQ has a positive free cash flow of $162 million, indicating a strong capacity to generate cash4.
- The company's debt-to-equity ratio is 1.68%, which is low and suggests a strong interest coverage capacity5.
EL Free Cash Flow, Debt-to-Equity Ratio
- Growth Focus: IonQ's strategic investments and partnerships, such as with Einride for quantum applications in logistics, and its aggressive expansion plans, suggest a clear growth focus67.
- Challenges: The company's financial statements show a substantial increase in research and development costs, which could indicate significant expenses related to innovation9. The volatility in the quantum computing sector could also pose a risk to the company's financial performance2.
In conclusion, IonQ Inc. shows strong revenue growth and a positive trend towards profitability, with a strong cash flow position and a strategic focus on growth. However, the high P/E ratio and the volatility in the quantum computing sector present challenges that investors should be aware of.
6/5/2025 04:15pm
