QinetiQ Group
Market Cap
UK£2.1b
Last Updated
2020/02/16 20:59 UTC
Data Sources
Company Financials +
Executive Summary
QinetiQ Group plc operates as a science and engineering company worldwide.
Rewards
Risk Analysis
No risks detected for QQ. from our risk checks.
Snowflake Analysis
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has QinetiQ Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QQ. has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.2%
QQ.
-1.7%
GB Aerospace & Defense
-0.2%
GB Market
1 Year Return
22.1%
QQ.
25.7%
GB Aerospace & Defense
6.1%
GB Market
Return vs Industry: QQ. underperformed the UK Aerospace & Defense industry which returned 25.7% over the past year.
Return vs Market: QQ. exceeded the UK Market which returned 6.1% over the past year.
Shareholder returns
| QQ. | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | -1.7% | -0.2% |
| 30 Day | 4.4% | 0.7% | -2.7% |
| 90 Day | 12.1% | 9.5% | 3.9% |
| 1 Year | 24.8%22.1% | 30.1%25.7% | 11.8%6.1% |
| 3 Year | 50.1%39.8% | 29.8%16.2% | 17.5%2.6% |
| 5 Year | 116.0%91.8% | 30.4%3.8% | 34.8%3.7% |
Price Volatility Vs. Market
How volatile is QinetiQ Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does QinetiQ Group plc's (LON:QQ.) P/E Ratio Signal A Buying Opportunity?2 weeks ago | Simply Wall St
Should You Be Concerned About QinetiQ Group plc's (LON:QQ.) Earnings Growth?1 month ago | Simply Wall St
Are QinetiQ Group's (LON:QQ.) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is QinetiQ Group undervalued compared to its fair value and its price relative to the market?
24.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: QQ. (£3.79) is trading below our estimate of fair value (£4.99)
Significantly Below Fair Value: QQ. is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: QQ. is good value based on its PE Ratio (17x) compared to the Aerospace & Defense industry average (32.2x).
PE vs Market: QQ. is good value based on its PE Ratio (17x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: QQ. is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: QQ. is good value based on its PB Ratio (2.5x) compared to the GB Aerospace & Defense industry average (2.5x).
Next Steps
Future Growth
How is QinetiQ Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
4.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QQ.'s forecast earnings growth (4.4% per year) is above the savings rate (0.5%).
Earnings vs Market: QQ.'s earnings (4.4% per year) are forecast to grow slower than the UK market (12.2% per year).
High Growth Earnings: QQ.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: QQ.'s revenue (8% per year) is forecast to grow faster than the UK market (3.4% per year).
High Growth Revenue: QQ.'s revenue (8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: QQ.'s Return on Equity is forecast to be low in 3 years time (16.4%).
Next Steps
Past Performance
How has QinetiQ Group performed over the past 5 years?
7.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QQ. has high quality earnings.
Growing Profit Margin: QQ.'s current net profit margins (12.9%) are lower than last year (14.4%).
Past Earnings Growth Analysis
Earnings Trend: QQ.'s earnings have grown by 7% per year over the past 5 years.
Accelerating Growth: QQ.'s earnings growth over the past year (1.5%) is below its 5-year average (7% per year).
Earnings vs Industry: QQ. earnings growth over the past year (1.5%) exceeded the Aerospace & Defense industry -13.2%.
Return on Equity
High ROE: QQ.'s Return on Equity (14.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is QinetiQ Group's financial position?
Financial Position Analysis
Short Term Liabilities: QQ.'s short term assets (£432.3M) exceed its short term liabilities (£327.2M).
Long Term Liabilities: QQ.'s short term assets (£432.3M) exceed its long term liabilities (£136.5M).
Debt to Equity History and Analysis
Debt Level: QQ. is debt free.
Reducing Debt: QQ. has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.
Debt Coverage: QQ. has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: QQ. has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: QQ. has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if QQ.'s debt is covered by short term assets.
Next Steps
Dividend
What is QinetiQ Group's current dividend yield, its reliability and sustainability?
1.74%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: QQ.'s dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: QQ.'s dividend (1.74%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
Stability and Growth of Payments
Stable Dividend: QQ.'s dividend payments have been volatile in the past 10 years.
Growing Dividend: QQ.'s dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.1%), QQ.'s dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: QQ.'s dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Steve Wadey (53yo)
4.8yrs
Tenure
UK£2,345,000
Compensation
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 Executiv ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD3.05M) is above average for companies of similar size in the UK market ($USD2.22M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.8yrs | UK£2.35m | 0.062% £1.3m | |
| CFO & Director | 3.1yrs | UK£1.42m | 0.012% £249.6k | |
| Group Director of Engineering & Operations | 3.8yrs | no data | no data | |
| Managing Director of Cyber | 2.6yrs | no data | no data | |
| Company Secretary & Group General Counsel | 9.1yrs | no data | no data | |
| Group Director of Human Resources | 4.1yrs | no data | no data | |
| Managing Director of Air & Space | 0yrs | no data | no data | |
| Chief of Staff | 4.8yrs | no data | no data | |
| Managing Director of International | 3.5yrs | no data | no data | |
| Managing Director of Maritime | 2.6yrs | no data | no data |
3.8yrs
Average Tenure
55yo
Average Age
Experienced Management: QQ.'s management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.8yrs | UK£2.35m | 0.062% £1.3m | |
| CFO & Director | 3.1yrs | UK£1.42m | 0.012% £249.6k | |
| Non-Executive Director | 9.3yrs | UK£62.00k | 0.015% £315.2k | |
| Deputy Chairman & Senior Independent Non-Executive Director | 8yrs | UK£73.00k | 0.0071% £151.5k | |
| Independent Chairman of the Board | 0.6yrs | no data | 0.0089% £189.4k | |
| Non-Executive Director | 5.7yrs | UK£53.00k | 0.0018% £37.9k | |
| Non-Executive Director | 4.1yrs | UK£84.00k | 0.0021% £45.5k | |
| Non-Executive Director | 5.9yrs | UK£53.00k | 0.0044% £94.7k | |
| Non-Executive Director | 9.8yrs | UK£63.00k | 0.0028% £58.9k |
5.7yrs
Average Tenure
58yo
Average Age
Experienced Board: QQ.'s board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
QinetiQ Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: QinetiQ Group plc
- Ticker: QQ.
- Exchange: LSE
- Founded: 2002
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: UK£2.128b
- Shares outstanding: 561.79m
- Website: https://www.qinetiq.com
Number of Employees
Location
- QinetiQ Group plc
- Cody Technology Park
- Ively Road
- Farnborough
- Hampshire
- GU14 0LX
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| QQ. | LSE (London Stock Exchange) | Yes | Ordinary Shares with Par Value 1P | GB | GBP | Feb 2006 |
| QY6 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares with Par Value 1P | DE | EUR | Feb 2006 |
| QNTQ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares with Par Value 1P | US | USD | Feb 2006 |
| QQL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares with Par Value 1P | GB | GBP | Feb 2006 |
| QNTQ.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Jan 2007 |
Biography
QinetiQ Group plc operates as a science and engineering company worldwide. It operates in EMEA Services and Global Products segments. The company offers air engineering services, test facilities, aircraft system integration and upgrades, aircraft life support and air traffic management services, unmanned aircraft systems, human factors integration and aero structure services, aircraft mission and runway debris detection technologies, safety and environmental management systems, empire test pilots schools, smart materials, and aircraft high intensity radiated fields and lightning workshops. It also provides platform protection, border and asset protection, robotics, infrastructure and base protection, wind farm impact assessment, proving ground, soldier system, research, and smart material products and services for land and critical infrastructure; and maritime stealth, platform readiness, command information, cyber security, design and optimization, and life support services, as well as smart materials, naval mission systems, naval combat systems engineering courses, and network cueing systems. In addition, the company offers counter drone, stand-off threat detection, electronic surveillance, asset tracking, space security, research, communications and networks, command and control, data fusion and exploitation, fast jet sensor fusion training, aircraft mission, air traffic management, and naval mission systems for command, control, communications, computers, intelligence, surveillance, and reconnaissance; and cyber and digital resilience systems. Further, it provides avionics, berthing and docking, electric propulsion, exploration, ground segment and operations, microgravity research, remote sensing, small satellites, space security, spaceflight training, and telescope baffle products for space; weapons; autonomous and robotic systems; and training and advisory services. The company was incorporated in 2002 and is headquartered in Farnborough, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 20:59 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.