AIM:IQE

Stock Analysis Report

Executive Summary

IQE plc develops, manufactures, and sells advanced semiconductor materials worldwide.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.


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


Market Performance


7 Day Return

-3.0%

IQE

-2.3%

GB Semiconductor

-0.4%

GB Market


1 Year Return

-29.1%

IQE

-35.7%

GB Semiconductor

2.9%

GB Market

Return vs Industry: IQE exceeded the UK Semiconductor industry which returned -35.7% over the past year.

Return vs Market: IQE underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

IQEIndustryMarket
7 Day-3.0%-2.3%-0.4%
30 Day-2.2%-3.7%-1.4%
90 Day17.6%10.0%-2.1%
1 Year-29.1%-29.1%-32.8%-35.7%7.9%2.9%
3 Year98.7%98.7%2.1%-3.9%18.0%3.6%
5 Year279.1%279.1%-16.6%-20.5%35.8%6.4%

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?

15.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IQE (£0.62) is trading below our estimate of fair value (£0.73)

Significantly Undervalued: 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 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

Low 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 (1.6x) compared to the GB Semiconductor industry average (1.2x).


Next Steps

Future Growth

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

113.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IQE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IQE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IQE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IQE's revenue (25.3% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: IQE's revenue (25.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IQE's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has IQE performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IQE is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% 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 (-4.8%).


Return on Equity

High ROE: IQE has a negative Return on Equity (-4.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: IQE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: IQE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is IQE's financial position?


Financial Position Analysis

Short Term Liabilities: IQE's short term assets (£86.4M) exceeds its short term liabilities (£47.2M)

Long Term Liabilities: IQE's short term assets (86.4M) exceeds its long term liabilities (58.4M)


Debt to Equity History and Analysis

Debt Level: IQE's debt to equity ratio (4%) is considered satisfactory

Reducing Debt: IQE's debt to equity ratio has reduced from 36.7% to 4% over the past 5 years.

Debt Coverage: IQE's debt is well covered by operating cash flow (104.9%).

Interest Coverage: IQE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: IQE has a high level of physical assets or inventory.

Debt Coverage by Assets: IQE's debt is covered by short term assets (assets are 7.191120x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

0.3yrs

Average management tenure


CEO

Drew Nelson (64yo)

20.5yrs

Tenure

UK£3,683,000

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 ($USD4.74M) is about average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Drew's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: IQE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: IQE's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Chris Meadows

    Head of Investor Relations

    • Tenure: 0yrs
  • Drew Nelson (64yo)

    President

    • Tenure: 20.5yrs
    • Compensation: UK£3.68m
  • Howard Williams (64yo)

    Executive Officer

    • Tenure: 0.3yrs
    • Compensation: UK£2.47m
  • Mark Furlong

    EVP of Global Business Development

    • Tenure: 0.3yrs
  • Norio Hayafuji

    Head of Sales & Marketing for the Asia Pacific Region

    • Tenure: 8.2yrs
  • Jason Howells (33yo)

    Company Secretary

    • Tenure: 2.6yrs
  • Tim Pullen (41yo)

    CFO & Director

    • Tenure: 0.8yrs
  • Rodney Pelzel

    Member of Executive Management Board

    • Tenure: 0.3yrs
  • Keith Anderson

    Former COO

    • Tenure: 0.3yrs
  • Wayne Johnson

    EVP of Global Business Dev

    • Tenure: 0.3yrs

Board Members

  • Drew Nelson (64yo)

    President

    • Tenure: 20.5yrs
    • Compensation: UK£3.68m
  • Carol Chesney (56yo)

    Non-executive Director

    • Tenure: 0.4yrs
  • Phil Smith (61yo)

    Non-Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: UK£50.00k
  • David Grant (71yo)

    Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£50.00k
  • Derek Jones (66yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£50.00k
  • Tim Pullen (41yo)

    CFO & Director

    • Tenure: 0.8yrs

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£487.854m
  • Shares outstanding: 791.97m
  • 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 worldwide. The company operates through Wireless, Photonics, Infra-Red, and CMOS++ segments. It manufactures compound semiconducto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.