Qnity Electronics (Q) Fundamental Analysis: Revenue, Earnings & Valuation

5.66 / 10

Netural

Qnity Electronics demonstrates moderate fundamental quality (5.7/10). Key positives include a 19.29% YoY total profit growth, robust net income-to-revenue at 0.4202, and strong operating cash-flow metrics. However, challenges persist in PB-ROE (1.1859) and Asset-MV (-0.5066), which rank in less favorable quartiles, indicating potential valuation risks. Interest coverage ratio (56.21%) provides some comfort on debt service. Historical back-tests show mixed one-month returns (e.g., 6.46% for profit growth, -3.17% for cash-MV), underscoring the need for cautious interpretation.

Analysis Checks(7/10)

Net cash flow from operating activities / Operating revenue (%)

Value21.94

Score2/3

Weight8.49%

1M Return3.75%

Net income-Revenue

Value0.42

Score2/3

Weight19.28%

1M Return7.58%

PB-ROE

Value1.19

Score1/3

Weight10.09%

1M Return4.29%

Total profit (YoY growth rate %)

Value19.29

Score3/3

Weight15.83%

1M Return6.46%

Net cash flow from operating activities (YoY growth rate %)

Value0.90

Score2/3

Weight8.29%

1M Return3.72%

Cash-UP

Value-0.05

Score3/3

Weight27.13%

1M Return10.73%

Net cash flow from operating activities / Total liabilities (%)

Value0.25

Score2/3

Weight6.80%

1M Return3.00%

Interest coverage ratio (EBIT / Interest expense) (%)

Value56.21

Score3/3

Weight9.29%

1M Return4.15%

Asset-MV

Value-0.51

Score0/3

Weight0.46%

1M Return0.25%

Cash-MV

Value-0.07

Score0/3

Weight-5.65%

1M Return-3.17%

Is Q fundamentally strong?

Q scores 5.66/10 on fundamentals and holds a Fair valuation at present. Backed by its 5.84% ROE, 18.03% net margin, 25.56 P/E ratio, 2.19 P/B ratio, and 0.00% earnings growth, these metrics solidify its Netural investment rating.