Is Qnity Electronics, Inc. (Q) undervalued or overvalued?

Our model estimates a fair value of about $67 against a price of $115.37 (Overvalued, -42% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for Q?

Qnity Electronics, Inc. has an X-Ray Score of 38 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Information Technology peers.

Where does the data for Q come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

Qnity Electronics, Inc. (Q)

Information Technology · Semiconductor Materials & Equipment · US stock · S&P 500 component

$115.37 ▼ -4.24 (3.54%)

At close 16 Oct 2026 · USD · Volume 1,803,500

Compare with LRCX Historical data Research report SEC filings

Fair valueOvervalued

$67 −41.6% to fair value

$34fair band $47–$88$101

Day's range

$115.10 – $119.42

52-week range

$70.32 – $177.16

About Qnity Electronics, Inc.

Qnity Electronics supplies specialty materials and process technologies used to make semiconductors and advanced electronic circuits. Its products include materials used in chip fabrication, such as polishing pads and slurries, plus packaging and circuit-board materials. Customers are chip makers, electronics manufacturers and equipment suppliers, who use them in advanced chips for computing, data centres and communications.

Qnity earns revenue by supplying these materials to electronics customers, often as consumables used repeatedly in production. Revenue is $5.2 billion over the last twelve months, and the operating margin is 16.9%. The business earns a profit of 6% on the capital invested in it, and it carries net debt of 2.8 times EBITDA. The dividend yield is 0.3%. On the site's X-Ray Score it receives 38 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $70.32 – $177.16Volume 1,803,500Daily, split-adjusted

Vitals

Market cap$24.3B

52-week range$70.32 – $177.16

Volume (last day)1,803,500

P/E (TTM)37.5

EBIT / EV yield3.1%

Free-cash-flow yield3.4%

Dividend yield0.3%

Revenue (TTM)$5.2B

Net income (TTM)$646M

Operating margin16.9%

Return on capital5.8%

Debt incl. leases$4.5B

Cash & securities$961M

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$67model spread $23 – $70

Overvalued −41.6% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $115

Undervalued < $47Fair $47 – $88Overvalued > $88

10-year DCF (market-scaled)

$30

Peer multiples

$105

Earnings power floor (not blended)

$13

Growth the price implies

30.6%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Weak business, priced high

Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better 34 The price is not above fair value $67 fair value Debt looks manageable 2.8× EBITDA Revenue has been growing Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.

Valuation Weak

43/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield3.1%

Free-cash-flow yield3.4%

Fair value vs price0.6×

Growth Weak

38/100

Growing slower than most of its sector.

See the numbers →

Profitability Weak

32/100

Earns lower returns on its capital than most peers.

See the numbers →

Return on invested capital5.8%

Operating margin16.9%

Gross profitability16.8%

Financial health Weak

36/100

Balance sheet is more stretched than most peers.

See the numbers →

Piotroski F-Score5 / 9

Net debt / EBITDA2.8×

Interest coverNo interest cost

Dividends Weak

39/100

Dividend is modest or less certain than peers.

See the numbers →

Dividend yield0.3%

Dividends vs free cash flow8%

Quarterly results: last 6 quarters

–

Mar '25

–

Jun '25

–

Sep '25

+3.7%

Dec '25

+17.6%

Mar '26

+22.1%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $1.4B, diluted EPS $0.59.

Compare with peers

LRCX Lam Research Corp56 AMAT Applied Materials Inc52 KLAC Kla Corp50 TER Teradyne, Inc44

Other Semiconductor Materials & Equipment companies by X-Ray Score.

Fundamentals checklist

● 1 Good · ● 6 Average · ● 5 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldAverage

Risk models

Altman Z''Bad

Piotroski F-ScoreBad

Growth

Balance sheet

Current ratioAverage

Net debt / EBITDABad

Interest coverGood

Valuation

Fair value vs priceAverage

EBIT / EV yieldAverage

Profitability

Return on invested capitalBad

Operating marginAverage

Gross profitabilityBad

Each check is graded against the company's sector, not a fixed number. Checklist score 38/100.

Financials

	FY23	FY24	FY25
Revenue	$4.0B	$4.3B	$4.8B
Operating income	$632M	$901M	$962M
Net income	$533M	$724M	$729M
Operating cash flow	$882M	$1.1B	$1.3B
Operating margin	15.7%	20.8%	20.2%
Free cash flow	$651M	$861M	$988M
Diluted EPS	$2.42	$3.31	$3.30

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bearish

3 bullish · 1 neutral · 11 bearish

Weekly

Strongly bearish

0 bullish · 1 neutral · 7 bearish

Monthly

Neutral

1 bullish · 0 neutral · 1 bearish

Moving averages (daily)

SMA 10	125.1	Bearish
EMA 10	122.7	Bearish
SMA 20	125.3	Bearish
EMA 20	124.0	Bearish
SMA 50	126.1	Bearish
EMA 50	126.9	Bearish
SMA 100	136.2	Bearish
EMA 100	129.5	Bearish
SMA 200	127.8	Bearish
EMA 200	–	n/a

Oscillators (daily)

RSI (14)	34.04	Neutral
MACD (12, 26)	-1.28	Bearish
Momentum (12)	-8.25	Bearish
Stochastic %K (14)	1.44	Bullish
Williams %R (14)	-98.56	Bullish
CCI (20)	-169.4	Bullish

Pivot points (classic, last session)

109.5

112.3

113.8

Pivot

116.6

118.2

121.0

122.5

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.