LSE:QQ.

Stock Analysis Report

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Executive Summary

QinetiQ Group plc operates as a science and engineering company primarily in the defence, security, and aerospace markets in the United Kingdom and internationally. More Details


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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.'s share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.4%

QQ.

-8.1%

GB Aerospace & Defense

-2.0%

GB Market


1 Year Return

-21.9%

QQ.

-24.6%

GB Aerospace & Defense

-17.2%

GB Market

Return vs Industry: QQ. exceeded the UK Aerospace & Defense industry which returned -24.6% over the past year.

Return vs Market: QQ. underperformed the UK Market which returned -17.2% over the past year.


Shareholder returns

QQ.IndustryMarket
7 Day-5.4%-8.1%-2.0%
30 Day-10.7%-8.0%-0.5%
90 Day-20.4%-6.9%-4.4%
1 Year-20.2%-21.9%-22.0%-24.6%-14.1%-17.2%
3 Year6.7%-0.5%-14.9%-23.7%-10.3%-21.4%
5 Year21.2%7.6%17.9%-1.3%13.4%-12.1%

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 compared to its fair value and its price relative to the market?

27.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QQ. (£2.44) is trading below our estimate of fair value (£3.38)

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 (13x) compared to the GB Aerospace & Defense industry average (20.2x).

PE vs Market: QQ. is good value based on its PE Ratio (13x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: QQ. is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: QQ. is good value based on its PB Ratio (1.6x) compared to the GB Aerospace & Defense industry average (2x).


Next Steps

Future Growth

How is QinetiQ Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QQ.'s forecast earnings growth (5.3% per year) is above the savings rate (1.2%).

Earnings vs Market: QQ.'s earnings (5.3% per year) are forecast to grow slower than the UK market (23.6% per year).

High Growth Earnings: QQ.'s earnings are forecast to grow, but not significantly.

Revenue vs Market: QQ.'s revenue (4.6% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: QQ.'s revenue (4.6% 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 (14.7%).


Next Steps

Past Performance

How has QinetiQ Group performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QQ. has high quality earnings.

Growing Profit Margin: QQ.'s current net profit margins (9.9%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: QQ.'s earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: QQ.'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QQ. had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-6.7%).


Return on Equity

High ROE: QQ.'s Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is QinetiQ Group's financial position?


Financial Position Analysis

Short Term Liabilities: QQ.'s short term assets (£415.0M) exceed its short term liabilities (£394.6M).

Long Term Liabilities: QQ.'s short term assets (£415.0M) exceed its long term liabilities (£156.2M).


Debt to Equity History and Analysis

Debt Level: QQ. is debt free.

Reducing Debt: QQ. currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QQ.'s dividend (2.7%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: QQ.'s dividend (2.7%) is low compared to the top 25% of dividend payers in the UK market (5.35%).


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 (35.2%), 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 (35.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Steve Wadey (54 yo)

5.5yrs

Tenure

UK£1,986,000

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 ($USD2.58M) is above average for companies of similar size in the UK market ($USD1.71M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steve Wadey
CEO & Executive Director5.5yrsUK£1.99m0.096%
£ 1.3m
David Smith
CFO & Corporate Governance and Director3.75yrsUK£1.39m0.037%
£ 509.4k
Ian Beresford
Group Function Director Technical0.75yrno datano data
James Willis
Group Managing Director of Cyber & Information3.25yrsno datano data
John Haworth
Group Head of Investor Relationsno datano datano data
Jon Messent
Company Secretary & Group General Counsel9.75yrsno datano data
Michelle Cummins
Group Function Director Human Resources4.75yrsno datano data
John Anderson
Group Managing Director Air & Spaceno datano datano data
Andy Thorp
Group Function Director Business Development & Interim Group MD International0.75yrno datano data
Stephen Fitz-Gerald
Group Managing Director of Maritime & Land3.25yrsno datano data
Mary Williams
President of United States0.75yrno datano data
Stephen Webster
Treasurerno datano datano data

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: QQ.'s management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steve Wadey
CEO & Executive Director5.5yrsUK£1.99m0.096%
£ 1.3m
David Smith
CFO & Corporate Governance and Director3.75yrsUK£1.39m0.037%
£ 509.4k
John Harper
Deputy Chairman & Senior Independent Non-Executive Director8.67yrsUK£63.00k0.0071%
£ 97.8k
Neil Johnson
Independent Chairman of the Board1.25yrsUK£188.00k0.0089%
£ 122.2k
Ian Mason
Independent Non-Executive Director6.33yrsUK£52.00k0.0018%
£ 24.4k
Lynn Brubaker
Independent Non-Executive Director4.75yrsUK£85.00k0.0021%
£ 29.4k
Susan Jane Searle
Independent Non-Executive Director6.58yrsUK£60.00k0.0062%
£ 85.5k
Shonaid Christina Jemmett-Page
Independent Non-Executive Director0.42yrno datano data
James Burnell-Nugent
Independent Non-Executive Director10.5yrsUK£63.00k0.0028%
£ 38.1k
Gordon Messenger
Independent Non-executive Directorno datano datano data

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: QQ.'s board of directors are considered experienced (5.5 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: 2001
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£1.379b
  • Shares outstanding: 564.38m
  • 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 primarily in the defence, security, and aerospace markets in the United Kingdom and internationally. The company operates through EMEA Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 20:36
End of Day Share Price2020/10/28 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.