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QinetiQ Group

LSE:QQ.
Snowflake Description

Flawless balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
QQ.
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and aerospace markets in the United Kingdom and internationally. The last earnings update was 186 days ago. More info.


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QQ. Share Price and Events
7 Day Returns
2.4%
LSE:QQ.
-0.5%
GB Aerospace & Defense
1.3%
GB Market
1 Year Returns
25.8%
LSE:QQ.
-17.7%
GB Aerospace & Defense
-5%
GB Market
QQ. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
QinetiQ Group (QQ.) 2.4% 4.8% -1.9% 25.8% 30% 54.3%
GB Aerospace & Defense -0.5% -2.1% -6.7% -17.7% 0.2% -7.5%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • QQ. outperformed the Aerospace & Defense industry which returned -17.7% over the past year.
  • QQ. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
QQ.
Industry
5yr Volatility vs Market

Value

 Is QinetiQ Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of QinetiQ Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for QinetiQ Group.

LSE:QQ. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:QQ.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 19%) (0%))
0.941
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.941 * 6.65%)
7.48%

Discounted Cash Flow Calculation for LSE:QQ. using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for QinetiQ Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:QQ. DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.48%)
2019 15.60 Analyst x3 14.51
2020 55.10 Analyst x3 47.69
2021 62.77 Analyst x3 50.55
2022 76.07 Analyst x3 56.99
2023 86.56 Est @ 13.79% 60.34
2024 95.23 Est @ 10.02% 61.76
2025 102.26 Est @ 7.38% 61.70
2026 107.92 Est @ 5.54% 60.58
2027 112.50 Est @ 4.24% 58.76
2028 116.25 Est @ 3.34% 56.49
Present value of next 10 years cash flows £529.38
LSE:QQ. DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £116.25 × (1 + 1.23%) ÷ (7.48% – 1.23%)
£1,880.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,880.89 ÷ (1 + 7.48%)10
£913.99
LSE:QQ. Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £529.38 + £913.99
£1,443.37
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,443.37 / 560.03
£2.58
LSE:QQ. Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.58
Current discount Discount to share price of £3.04
= -1 x (£3.04 - £2.58) / £2.58
-18%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of QinetiQ Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for QinetiQ Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are QinetiQ Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:QQ. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.22
LSE:QQ. Share Price ** LSE (2019-05-20) in GBP £3.04
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 22.75x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of QinetiQ Group.

LSE:QQ. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:QQ. Share Price ÷ EPS (both in GBP)

= 3.04 ÷ 0.22

13.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • QinetiQ Group is good value based on earnings compared to the GB Aerospace & Defense industry average.
  • QinetiQ Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does QinetiQ Group's expected growth come at a high price?
Raw Data
LSE:QQ. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
2.5%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 1.93x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:QQ. PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.86x ÷ 2.5%

5.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • QinetiQ Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on QinetiQ Group's assets?
Raw Data
LSE:QQ. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £1.43
LSE:QQ. Share Price * LSE (2019-05-20) in GBP £3.04
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 12 Publicly-Listed Aerospace & Defense Companies 2x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:QQ. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:QQ. Share Price ÷ Book Value per Share (both in GBP)

= 3.04 ÷ 1.43

2.13x

* Primary Listing of QinetiQ Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • QinetiQ Group is overvalued based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess QinetiQ Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. QinetiQ Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is QinetiQ Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is QinetiQ Group expected to grow at an attractive rate?
  • QinetiQ Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • QinetiQ Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • QinetiQ Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:QQ. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:QQ. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 2.5%
LSE:QQ. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.7%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 12.8%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:QQ. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:QQ. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 1,058 1
2023-03-31 1,030 1
2022-03-31 983 172 116 4
2021-03-31 943 151 112 7
2020-03-31 917 146 107 8
2019-03-31 878 116 101 8
LSE:QQ. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 861 140 124
2018-06-30 847 128 131
2018-03-31 833 117 138
2017-12-31 823 99 138
2017-09-30 814 80 138
2017-06-30 798 95 131
2017-03-31 783 109 123
2016-09-30 747 151 106
2016-06-30 751 156 102
2016-03-31 756 162 99

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • QinetiQ Group's earnings are expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
  • QinetiQ Group's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:QQ. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from QinetiQ Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:QQ. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 0.21 0.21 0.21 1.00
2021-03-31 0.20 0.21 0.19 3.00
2020-03-31 0.19 0.20 0.19 3.00
2019-03-31 0.18 0.18 0.18 3.00
LSE:QQ. Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.22
2018-06-30 0.23
2018-03-31 0.24
2017-12-31 0.24
2017-09-30 0.24
2017-06-30 0.23
2017-03-31 0.21
2016-09-30 0.18
2016-06-30 0.18
2016-03-31 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • QinetiQ Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess QinetiQ Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
QinetiQ Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has QinetiQ Group performed over the past 5 years?

  • QinetiQ Group's last earnings update was 186 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare QinetiQ Group's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • QinetiQ Group has delivered over 20% year on year earnings growth in the past 5 years.
  • QinetiQ Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • QinetiQ Group's 1-year earnings growth is negative, it can't be compared to the GB Aerospace & Defense industry average.
Earnings and Revenue History
QinetiQ Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from QinetiQ Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:QQ. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 860.80 124.10
2018-06-30 846.90 131.10
2018-03-31 833.00 138.10
2017-12-31 823.40 138.00
2017-09-30 813.80 137.90
2017-06-30 798.45 130.60
2017-03-31 783.10 123.30
2016-09-30 746.60 106.10
2016-06-30 751.15 102.35
2016-03-31 755.70 98.60
2015-09-30 769.10 121.20
2015-06-30 766.45 119.30
2015-03-31 763.80 117.40
2014-12-31 767.30 83.35 -0.60
2014-09-30 770.80 49.30 -1.20
2014-06-30 776.70 58.65 -0.60
2014-03-31 782.60 68.00
2013-12-31 901.15 -36.40 0.20
2013-09-30 1,019.70 -140.80 0.40
2013-06-30 1,173.75 -137.00 0.20
2013-03-31 1,327.80 -133.20
2012-12-31 1,371.65 58.20 -1.35
2012-09-30 1,415.50 249.60 -2.70
2012-06-30 1,442.55 247.95 -1.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • QinetiQ Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • QinetiQ Group used its assets more efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.
  • QinetiQ Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess QinetiQ Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
QinetiQ Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is QinetiQ Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up QinetiQ Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • QinetiQ Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • QinetiQ Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of QinetiQ Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • QinetiQ Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from QinetiQ Group Company Filings, last reported 7 months ago.

LSE:QQ. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 807.70 0.00 251.00
2018-06-30 807.70 0.00 251.00
2018-03-31 744.30 0.00 270.50
2017-12-31 744.30 0.00 270.50
2017-09-30 636.60 0.00 198.00
2017-06-30 636.60 0.00 198.00
2017-03-31 532.60 0.00 223.50
2016-09-30 308.80 1.10 274.00
2016-06-30 308.80 1.10 274.00
2016-03-31 324.80 0.00 275.10
2015-09-30 285.20 0.10 182.90
2015-06-30 285.20 0.10 182.90
2015-03-31 298.10 1.40 196.60
2014-12-31 298.10 1.40 196.60
2014-09-30 307.90 3.10 209.20
2014-06-30 307.90 3.10 209.20
2014-03-31 378.10 156.30 324.30
2013-12-31 378.10 156.30 324.30
2013-09-30 473.70 161.90 281.50
2013-06-30 473.70 161.90 281.50
2013-03-31 438.50 173.30 241.80
2012-12-31 438.50 173.30 241.80
2012-09-30 598.80 163.50 180.20
2012-06-30 598.80 163.50 180.20
  • QinetiQ Group has no debt.
  • QinetiQ Group has no debt compared to 5 years ago when it was 34.2%.
  • QinetiQ Group has no debt, it does not need to be covered by operating cash flow.
  • QinetiQ Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess QinetiQ Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. QinetiQ Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is QinetiQ Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.07%
Current annual income from QinetiQ Group dividends. Estimated to be 2.43% next year.
If you bought £2,000 of QinetiQ Group shares you are expected to receive £41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • QinetiQ Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • QinetiQ Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:QQ. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:QQ. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 0.08 4.00
2021-03-31 0.07 7.00
2020-03-31 0.07 8.00
2019-03-31 0.07 8.00
LSE:QQ. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-06-13 0.063 2.199
2018-05-24 0.063 2.353
2017-06-13 0.060 2.633
2017-05-25 0.060 1.962
2016-06-14 0.057 2.267
2016-05-26 0.057 2.357
2015-06-12 0.054 2.299
2015-05-21 0.054 2.288
2014-06-17 0.046 2.270
2014-05-22 0.046 2.212
2013-11-21 0.041 1.876
2013-05-23 0.038 2.000
2012-11-21 0.031 1.597
2012-06-20 0.040 2.268
2012-05-24 0.040 2.630
2011-11-23 0.018 1.270
2011-06-20 0.016 1.365
2011-05-26 0.016 1.368
2010-11-18 0.000 0.000
2010-06-02 0.000 0.000
2010-05-27 0.000 0.000
2009-11-25 0.048 3.502
2009-06-01 0.048 3.281
2009-05-21 0.048 3.340

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of QinetiQ Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess QinetiQ Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can QinetiQ Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. QinetiQ Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of QinetiQ Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Wadey
COMPENSATION £1,522,000
AGE 52
TENURE AS CEO 4.1 years
CEO Bio

Mr. Steve Wadey has been Chief Executive Officer of QinetiQ Group plc since April 27, 2015 and is responsible for its executive management and implementation of the strategy. Mr. Wadey has been an Executive Director of QinetiQ Group since April 27, 2015. Mr. Wadey has a proven track record of driving growth and in-depth experience in the Defense and technology industries. He also has extensive operational and corporate experience and stewardship. He served as the Managing Director of UK and Executive Group Director of Technical at MBDA Holdings SAS since January 2008 and served as its Member of Executive Board. Mr. Wadey held various roles with MBDA from 2001 to 2014, served as Managing Director, MBDA UK and Technical Director for the MBDA Group. He held various roles in engineering at Matra BAe Dynamics from 1996 to 2001 and Various roles with British Aerospace from 1989 to 1996. He was a Co-Chair of the National Defense Industries Research & Development Group. He was a Co-chair of the Defense Growth Partnership. He was a Non-executive director of the MOD Research and Development Board. He is Chair of the Defense Industry Liaison Board of the UK Department for International Trade, Defense & Security Organisation. He was a member of the Prime Minister’s Business Advisory Group. He is a Fellow of the Royal Academy of Engineering; the Institution of Engineering and Technology and the Royal Aeronautical Society. He holds Honors Degree in Electrical and electronic Engineering from the University of Cardiff in 1991.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the QinetiQ Group management team in years:

3.2
Average Tenure
53
Average Age
  • The tenure for the QinetiQ Group management team is about average.
Management Team

Steve Wadey

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
52
TENURE
4.1 yrs

David Smith

TITLE
CFO & Director
COMPENSATION
£1M
AGE
57
TENURE
2.2 yrs

Ian Beresford

TITLE
Group Director of Engineering & Operations
TENURE
3.1 yrs

James Willis

TITLE
Managing Director of Cyber
TENURE
1.8 yrs

David Bishop

TITLE
Group Director of Investor Relations and Communications

Jon Messent

TITLE
Group General Counsel & Company Secretary
AGE
54
TENURE
8.3 yrs

Michelle Cummins

TITLE
Group Director of Human Resources
AGE
46
TENURE
3.3 yrs

Nic Anderson

TITLE
Managing Director of Air & Space

Vicky Weise

TITLE
Chief of Staff
TENURE
4 yrs

Iain Farley

TITLE
Managing Director of International
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the QinetiQ Group board of directors in years:

5
Average Tenure
58.5
Average Age
  • The tenure for the QinetiQ Group board of directors is about average.
Board of Directors

Mark Elliott

TITLE
Non-Executive Chairman
COMPENSATION
£318K
AGE
69
TENURE
9.2 yrs

Steve Wadey

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
52
TENURE
4.1 yrs

John Harper

TITLE
Deputy Chairman & Senior Independent Non-Executive Director
COMPENSATION
£68K
AGE
73
TENURE
7.3 yrs

David Smith

TITLE
CFO & Director
COMPENSATION
£1M
AGE
57
TENURE
2.3 yrs

James Burnell-Nugent

TITLE
Non-Executive Director
COMPENSATION
£59K
AGE
68
TENURE
9.1 yrs

Paul Murray

TITLE
Non-Executive Director
COMPENSATION
£58K
AGE
56
TENURE
8.6 yrs

Susan Jane Searle

TITLE
Non-Executive Director
COMPENSATION
£49K
AGE
55
TENURE
5.2 yrs

Ian Mason

TITLE
Non-Executive Director
COMPENSATION
£49K
AGE
55
TENURE
4.9 yrs

Lynn Brubaker

TITLE
Non-Executive Director
COMPENSATION
£85K
AGE
60
TENURE
3.3 yrs

Neil Johnson

TITLE
Independent Non-Executive Director
AGE
68
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
22. Jun 18 Sell Steve Wadey Individual 21. Jun 18 21. Jun 18 -148,502 £2.68 £-398,178
X
Management checks
We assess QinetiQ Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. QinetiQ Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

QinetiQ Group plc (LON:QQ.): A Fundamentally Attractive Investment

Help shape the future of investing tools and you could win a $250 gift card! … QinetiQ Group plc (LON:QQ.) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

Should You Worry About QinetiQ Group plc's (LON:QQ.) CEO Pay Cheque?

How Does Steve Wadey's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that QinetiQ Group plc has a market cap of UK£1.6b, and is paying total annual CEO compensation of UK£1.5m. … We looked at a group of companies with market capitalizations from UK£775m to UK£2.5b, and the median CEO total compensation was UK£1.3m.

Simply Wall St -

QinetiQ Group plc (LON:QQ.): Earnings Growth Remains Elusive

Based on QinetiQ Group plc's (LON:QQ.) earnings update in September 2018, … as a -16% fall in profits is expected in the upcoming year

Simply Wall St -

Do QinetiQ Group plc’s (LON:QQ.) Returns On Capital Employed Make The Cut?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Did QinetiQ Group plc (LON:QQ.) Insiders Sell Shares?

So before you buy or sell QinetiQ Group plc (LON:QQ.), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … QinetiQ Group Insider Transactions Over The Last Year.

Simply Wall St -

Should You Be Excited About QinetiQ Group plc's (LON:QQ.) 15% Return On Equity?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of QinetiQ Group plc (LON:QQ.). … That means that for every £1 worth of shareholders' equity, it generated £0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

The QinetiQ Group Share Price Has Gained 52% And Shareholders Are Hoping For More

To wit, the QinetiQ Group plc (LON:QQ.) share price is 52% higher than it was a year ago, much better than the market return of around -1.3% (not including dividends) in the same period. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the last year, QinetiQ Group actually saw its earnings per share drop 9.8%.

Simply Wall St -

Is QinetiQ Group plc (LON:QQ.) A Smart Pick For Income Investors?

Historically, QinetiQ Group plc (LON:QQ.) has been paying a dividend to shareholders. … Does QinetiQ Group tick all the boxes of a great dividend stock? … See our latest analysis for QinetiQ Group

Simply Wall St -

Should QinetiQ Group plc's (LON:QQ.) Recent Earnings Decline Worry You?

Today I will assess QQ.'s recent performance announced on 30 September 2018 and compare these figures to its long-term trend and industry movements. … How Did QQ.'s Recent Performance Stack Up Against Its Past. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29%, indicating the rate at which QQ

Simply Wall St -

Is QinetiQ Group plc's (LON:QQ.) Liquidity Good Enough?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like QinetiQ Group plc (LON:QQ.), with a market cap of UK£1.7b, are often out of the spotlight. … This article will examine QQ.’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of QinetiQ Group's financial health, so you should conduct further analysis.

Simply Wall St -

Company Info

Description

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and aerospace markets in the United Kingdom and internationally. The company operates through EMEA Services and Global Products segments. It offers de-risk complex aerospace programs by testing system and equipment, air engineering services, aircraft system integration and upgrades, life aircraft support services, unmanned aircraft systems, human factors integration, aero structures, air traffic management, and aircraft mission systems; smart materials, which include acoustic stealth materials, radio frequency stealth materials, and electro-optic stealth materials; and runway debris detection technology, training to experienced pilots and engineers, and safety and environmental management services. The company also provides research, evaluation, and training services to maritime, land, and weapons; and technical advice and design support services. In addition, it offers training, communication networks and devices, intelligence gathering and surveillance sensors, and cyber security services to government and commercial customers; and receiver processing for the encrypted public regulated service. Further, the company engages in the development and manufacture of defense products, specializing in unmanned systems, survivability and maritime systems, and related products in commercial markets; and provides cargo handling and security robots, as well as fiber sensing solutions to deliver decision ready data in a range of vertical markets. Additionally, it offers space products, such as satellites, payload instruments, sub-systems, and ground station services; research services and technological solutions; and advisory services, such as commerce decisions, business analysis and modelling, requirements and acceptance management, and project management cost assurance. The company was incorporated in 2002 and is headquartered in Farnborough, the United Kingdom.

Details
Name: QinetiQ Group plc
QQ.
Exchange: LSE
Founded: 2002
£1,703,604,397
560,027,744
Website: http://www.qinetiq.com
Address: QinetiQ Group plc
Cody Technology Park,
Ively Road,
Farnborough,
Hampshire, GU14 0LX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE QQ. Ordinary Shares with Par Value 1P London Stock Exchange GB GBP 10. Feb 2006
OTCPK QNTQ.F Ordinary Shares with Par Value 1P Pink Sheets LLC US USD 10. Feb 2006
DB QY6 Ordinary Shares with Par Value 1P Deutsche Boerse AG DE EUR 10. Feb 2006
BATS-CHIXE QQL Ordinary Shares with Par Value 1P BATS 'Chi-X Europe' GB GBP 10. Feb 2006
OTCPK QNTQ.Y ADR Pink Sheets LLC US USD 18. Jan 2007
Number of employees
Current staff
Staff numbers
6,065
QinetiQ Group employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 21:00
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/08
Last earnings filing: 2018/11/15
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.