AIM:IQE

Stock Analysis Report

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Executive Summary

IQE plc develops, manufactures, and sells advanced semiconductor materials. More Details

Rewards

Trading at 18.5% below our estimate of its fair value

Earnings are forecast to grow 102.27% per year

Risk Analysis

No risks detected for IQE from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has IQE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IQE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

IQE

-5.4%

GB Semiconductor

-2.0%

GB Market


1 Year Return

-27.1%

IQE

-26.8%

GB Semiconductor

-17.2%

GB Market

Return vs Industry: IQE underperformed the UK Semiconductor industry which returned -24.5% over the past year.

Return vs Market: IQE underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

IQEIndustryMarket
7 Day-8.2%-5.4%-2.0%
30 Day2.1%0.5%-0.5%
90 Day1.6%-4.4%-4.4%
1 Year-27.1%-27.1%-26.8%-26.8%-14.1%-17.2%
3 Year-64.4%-64.4%-62.5%-63.2%-10.3%-21.4%
5 Year111.4%111.4%-8.8%-12.1%13.4%-12.1%

Price Volatility Vs. Market

How volatile is IQE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IQE undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IQE (£0.52) is trading below our estimate of fair value (£0.64)

Significantly Below Fair Value: IQE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IQE is unprofitable, so we can't compare its PE Ratio to the XE Semiconductor industry average.

PE vs Market: IQE is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IQE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IQE is overvalued based on its PB Ratio (1.5x) compared to the GB Semiconductor industry average (1x).


Next Steps

Future Growth

How is IQE forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

102.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IQE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: IQE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IQE's is expected to become profitable in the next 3 years.

Revenue vs Market: IQE's revenue (10.2% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: IQE's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IQE's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has IQE performed over the past 5 years?

-62.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IQE is currently unprofitable.

Growing Profit Margin: IQE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IQE is unprofitable, and losses have increased over the past 5 years at a rate of 62.5% per year.

Accelerating Growth: Unable to compare IQE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IQE is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-20.3%).


Return on Equity

High ROE: IQE has a negative Return on Equity (-10.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is IQE's financial position?


Financial Position Analysis

Short Term Liabilities: IQE's short term assets (£92.3M) exceed its short term liabilities (£47.3M).

Long Term Liabilities: IQE's short term assets (£92.3M) exceed its long term liabilities (£67.2M).


Debt to Equity History and Analysis

Debt Level: IQE's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: IQE's debt to equity ratio has reduced from 24% to 9% over the past 5 years.

Debt Coverage: IQE's debt is well covered by operating cash flow (75.3%).

Interest Coverage: Insufficient data to determine if IQE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is IQE current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IQE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IQE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IQE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IQE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IQE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Drew Nelson (65 yo)

21.5yrs

Tenure

UK£599,000

Compensation

Dr. Andrew William Nelson, also known as Drew, OBE, BSc, PhD, FREng has been the Chief Executive Officer of IQE Public Limited Company since April 1999 and also serves as its President. Dr. Nelson joined B ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD783.08K) is about average for companies of similar size in the UK market ($USD885.82K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Nelson
President21.5yrsUK£599.00k4.54%
£ 18.7m
Timothy Pullen
CFO & Director1.67yrsUK£588.45kno data
Howard Williams
Consultant Advisor1.25yrsUK£382.65kno data
Mark Furlong
EVP of Global Business Development1.25yrsno datano data
Rodney Pelzel
Member of Executive Management Board1.25yrsno datano data
Keith Anderson
COO, Executive VP of Global Operations & Member of Executive Management Board1.25yrsno datano data
Wayne Johnson
EVP of Global Business Dev1.25yrsno datano data
Amy Barlow
Head of Investor Relationsno datano datano data
Tom Dale
General Counsel & Company Secretaryno datano datano data
Norio Hayafuji
Head of Sales & Marketing for the Asia Pacific Region9.17yrsno datano data

1.3yrs

Average Tenure

65yo

Average Age

Experienced Management: IQE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Nelson
President21.5yrsUK£599.00k4.54%
£ 18.7m
Timothy Pullen
CFO & Director1.67yrsUK£588.45kno data
Carol Chesney
Independent Non-Executive Director1.42yrsUK£32.00kno data
Phil Smith
Independent Non-Executive Chairman1.5yrsUK£96.00kno data
David Grant
Senior Independent Non-Executive Directorno dataUK£50.00k0.027%
£ 111.4k
Derek Jones
Independent Non-Executive Director2.92yrsUK£50.00kno data

1.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IQE's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IQE plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IQE plc
  • Ticker: IQE
  • Exchange: AIM
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: UK£412.495m
  • Shares outstanding: 796.32m
  • Website: https://www.iqep.com

Number of Employees


Location

  • IQE plc
  • Pascal Close
  • St. Mellons
  • Cardiff
  • South Glamorgan
  • CF3 0LW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IQEP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2000
IQEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2000
IQXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2000

Biography

IQE plc develops, manufactures, and sells advanced semiconductor materials. The company operates through Wireless, Photonics, and CMOS++ segments. It manufactures compound semiconductor wafers or epiwafers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 20:39
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.