OTCPK:IQEP.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with high growth potential.

Risks

  • IQE has significant price volatility in the past 3 months.

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

-5.9%

IQEP.F

-2.5%

US Semiconductor

-0.6%

US Market


1 Year Return

-41.5%

IQEP.F

7.5%

US Semiconductor

0.6%

US Market

IQEP.F underperformed the Semiconductor industry which returned 9.4% over the past year.

IQEP.F underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

IQEP.FIndustryMarket
7 Day-5.9%-2.5%-0.6%
30 Day14.3%3.2%2.2%
90 Day0%10.1%1.1%
1 Year-41.5%-41.5%9.6%7.5%2.9%0.6%
3 Year118.2%118.2%79.9%69.3%44.6%35.2%
5 Year159.0%159.0%119.3%97.0%61.9%44.2%

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

No news available

Valuation

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

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

IQE is loss making, we can't compare its value to the US Semiconductor industry average.

IQE is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for IQE, we can't assess if its growth is good value.


Price Based on Value of Assets

IQE is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

111.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IQE's revenue is expected to grow significantly at over 20% yearly.

IQE's earnings are expected to grow significantly at over 20% yearly.

IQE's revenue growth is expected to exceed the United States of America market average.

IQE's earnings growth is expected to exceed the United States of America market average.

IQE's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


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

IQE does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare IQE's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare IQE's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if IQE has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if IQE has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if IQE improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is IQE's financial position?


Financial Position Analysis

IQE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

IQE's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

IQE's level of debt (4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (36.7% vs 4% today).

Debt is well covered by operating cash flow (104.9%, greater than 20% of total debt).

IQE is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 7.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

Unable to evaluate IQE's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as IQE has not reported any payouts.

Unable to verify if IQE's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as IQE has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of IQE's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

0.2yrs

Average management tenure


CEO

Drew Nelson (64yo)

20.4yrs

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

Drew's remuneration is higher than average for companies of similar size in United States of America.

Drew's compensation has increased whilst company is loss making.


Management Age and Tenure

0.2yrs

Average Tenure

52.5yo

Average Age

The average tenure for the IQE management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

62.5yo

Average Age

The average tenure for the IQE board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chris Meadows

    Head of Investor Relations

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

    President

    • Tenure: 20.4yrs
    • Compensation: UK£3.68m
  • Howard Williams (64yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: UK£2.47m
  • Mark Furlong

    EVP of Global Business Development

    • Tenure: 0.2yrs
  • Norio Hayafuji

    Head of Sales & Marketing for the Asia Pacific Region

    • Tenure: 8.1yrs
  • Jason Howells (33yo)

    Company Secretary

    • Tenure: 2.5yrs
  • Tim Pullen (41yo)

    CFO & Director

    • Tenure: 0.7yrs
  • Rodney Pelzel

    Member of Executive Management Board

    • Tenure: 0.2yrs
  • Keith Anderson

    Former COO

    • Tenure: 0.2yrs
  • Wayne Johnson

    EVP of Global Business Dev

    • Tenure: 0.2yrs

Board Members

  • Drew Nelson (64yo)

    President

    • Tenure: 20.4yrs
    • Compensation: UK£3.68m
  • Carol Chesney (56yo)

    Non-executive Director

    • Tenure: 0.3yrs
  • Phil Smith (61yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£50.00k
  • David Grant (71yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: UK£50.00k
  • Derek Jones (66yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£50.00k
  • Tim Pullen (41yo)

    CFO & Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: IQE plc
  • Ticker: IQEP.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: UK£448.196m
  • Listing Market Cap: UK£559.881m
  • Shares outstanding: 791.87m
  • 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 Analysis2019/09/20 23:51
End of Day Share Price2019/09/18 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.