LSE:QQ.

Stock Analysis Report

Executive Summary

QinetiQ Group plc operates as a science and engineering company worldwide.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


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


Market Performance


7 Day Return

-0.4%

LSE:QQ.

-1.1%

GB Aerospace & Defense

-1.7%

GB Market


1 Year Return

0.8%

LSE:QQ.

-3.0%

GB Aerospace & Defense

-5.7%

GB Market

QQ. outperformed the Aerospace & Defense industry which returned -3% over the past year.

QQ. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

QQ.IndustryMarket
7 Day-0.4%-1.1%-1.7%
30 Day-0.4%9.2%-4.8%
90 Day-9.8%18.8%-2.7%
1 Year3.1%0.8%0.4%-3.0%-1.3%-5.7%
3 Year27.4%18.4%21.9%9.1%17.8%4.0%
5 Year45.2%28.5%33.7%6.3%26.9%0.2%

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

Valuation

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

0.35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

QinetiQ Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

QinetiQ Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

QinetiQ Group is poor value based on expected growth next year.


Price Based on Value of Assets

QinetiQ Group is overvalued based on assets compared to the GB Aerospace & Defense industry average.


Next Steps

Future Growth

How is QinetiQ Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

QinetiQ Group's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

QinetiQ Group's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

QinetiQ Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

QinetiQ Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

QinetiQ Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

QinetiQ Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has QinetiQ Group performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

QinetiQ Group's year on year earnings growth rate has been positive over 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.


Return on Equity

QinetiQ Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

QinetiQ Group used its assets more efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

QinetiQ Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is QinetiQ Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

QinetiQ Group has no debt.

QinetiQ Group has no debt compared to 5 years ago when it was 39.9%.

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.


Balance Sheet

High level of physical assets or inventory.

QinetiQ Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

QinetiQ Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

QinetiQ Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

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

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Steve Wadey (53yo)

4.3yrs

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

Steve's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Steve's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

54yo

Average Age

The tenure for the QinetiQ Group management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

58yo

Average Age

The tenure for the QinetiQ Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jon Messent (55yo)

    Company Secretary & Group General Counsel

    • Tenure: 8.6yrs
  • Steve Wadey (53yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£2.35m
  • Nic Anderson

    Managing Director of Air & Space

    • Tenure: 0.0yrs
  • David Smith (58yo)

    CFO & Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.42m
  • David Bishop

    Group Director of Investor Relations and Communications

    • Tenure: 0.0yrs
  • Iain Farley

    Managing Director of International

    • Tenure: 3.0yrs
  • Michelle Cummins (47yo)

    Group Director of Human Resources

    • Tenure: 3.6yrs
  • Ian Beresford

    Group Director of Engineering & Operations

    • Tenure: 3.3yrs
  • Vicky Weise

    Chief of Staff

    • Tenure: 4.3yrs
  • James Willis

    Managing Director of Cyber

    • Tenure: 2.1yrs

Board Members

  • Paul Murray (57yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£62.00k
  • John Harper (74yo)

    Deputy Chairman & Senior Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£73.00k
  • Neil Johnson (69yo)

    Chairman of the Board

    • Tenure: 0.1yrs
  • Ian Mason (56yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£53.00k
  • Lynn Brubaker (61yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£84.00k
  • Steve Wadey (53yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£2.35m
  • Susan Jane Searle (56yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£53.00k
  • David Smith (58yo)

    CFO & Director

    • Tenure: 2.6yrs
    • Compensation: UK£1.42m
  • James Burnell-Nugent (69yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£63.00k

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£1.532b
  • Shares outstanding: 561.02m
  • Website: https://www.qinetiq.com

Number of Employees


Location

  • QinetiQ Group plc
  • Cody Technology Park
  • Ively Road
  • Farnborough
  • Hampshire
  • GU14 0LX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QQ.LSE (London Stock Exchange)YesOrdinary Shares with Par Value 1PGBGBPFeb 2006
QY6DB (Deutsche Boerse AG)YesOrdinary Shares with Par Value 1PDEEURFeb 2006
QNTQ.FOTCPK (Pink Sheets LLC)YesOrdinary Shares with Par Value 1PUSUSDFeb 2006
QQLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Shares with Par Value 1PGBGBPFeb 2006
QNTQ.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:52
End of Day Share Price2019/08/19 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.