Qnity Electronics, Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Qnity Electronics remains a buy as quarterly revenue growth accelerates — Q2 2026 revenue of $1.43B grew 22.1% YoY, up from Q1 2026's 17.6% — and the company has beaten consensus EPS estimates in each of the last four reported quarters by 11.2% to 30.6%.
The stock trades at a 41.7% EV/EBITDA discount and a 57.8% P/S discount to the semiconductor peer median as of the latest peer comparison, while September 2026 inclusion in the PHLX Semiconductor Sector Index (SOX) should support passive inflows. FY2025 free cash flow of $988M (20.8% FCF margin) underpins a credible deleveraging path against the $4.98B post-spin debt load, though gross margin compression from 46.1% in FY2024 to 41.8% in FY2025 and the stock trading below both its 50-day ($127.39) and 200-day ($127.16) moving averages temper conviction.
What could go wrong
- Margin compression. Gross margin contracted from 46.1% in FY2024 to 41.8% in FY2025 while net income was essentially flat (-0.14% YoY) despite 9.7% revenue growth, suggesting cost pressures or mix shifts eroding profitability.
- Elevated leverage. Total debt surged from $191M in FY2024 to $4.98B in FY2025 following the spin-off, creating interest burden and balance-sheet risk that could constrain flexibility if semiconductor demand softens.
- Technical weakness. Stock at $123.21 trades below both MA50 ($127.39) and MA200 ($127.16) with RSI of 44.8, indicating near-term bearish momentum despite fundamental improvement.
- Cyclical demand risk. Semiconductor equipment and materials are highly cyclical; FY2023 revenue declined 15.1% YoY and net income fell 34.5%, demonstrating vulnerability to downcycles.
What would change my mind
Where this comes from: Q2 2026 results · Q1 2026 results · earnings vs estimates · peer comparison. Orin's read on Q; not advice.
How has the share price moved?
Up 24.6% over twelve months, from $95.30 on 27 Oct 2025 to $118.75 at the Tue 27 Oct 2026 close. Its highest close in that time was $175.64 on 22 Jun 2026; the last close is 32.4% below it.
- The 50-day average starts on 7 Jan 2026, once there were 50 trading days to average.
- The 200-day average starts on 13 Aug 2026, once there were 200 trading days to average.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 10.6M, on 3 Nov 2025).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All Q filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $2.6B | 0.0% |
| Vanguard Capital Management | $2.2B | 0.0% |
| Vanguard Portfolio Management | $1.7B | 0.1% |
| State Street | $1.5B | 0.0% |
| Geode Capital Management | $910.0M | 0.0% |
| Durable Capital Partners | $743.6M | 7.2% |
| Invesco | $663.0M | 0.1% |
| Morgan Stanley | $550.0M | 0.0% |
| Northern Trust | $342.4M | 0.0% |
| Goldman Sachs Group | $339.2M | 0.0% |
107 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 24 Form 4 filings; open-market trades net $79K. Of the 24 on hand, 1 was an open-market purchase and 1 a sale — the rest are grants, option exercises and tax withholding.
Ask Orin about Q
Orin answers questions about Q from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 41.4× its last 12 months of profit (Thu 5 Nov close); the typical Technology company on the NYSE is at 39.5×. It has too few years of its own for a usual level.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 41.4× | — | 39.5× |
| P/S | 4.19× | — | — |
| EV/EBITDA | 17.5× | — | — |
| P/B | 3.0× | — | — |
- Listed on 27 Oct 2025 — earlier years are not shown.
- So it has no full fiscal year of its own on file yet — no usual level.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $176 (from $160 to $211) — 48% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$176
$160 – $211 · +48% against the last close
- 4 buy or overweight
- 0 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 41.4× its last 12 months of profit; the middle P/E of the 7 companies it is compared to that made a profit is 35.7×.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| QQnity Electronics, Inc. | $23B | 41.4× | 17.5× | 45.0% | 10.2% | 8% |
| ACLSAxcelis Technologies, Inc. | $3B | 26.5× | 19.4× | 42.8% | 11.7% | 10% |
| AMATApplied Materials, Inc. | $314B | 33.9× | 27.3× | 49.4% | 30.1% | 40% |
| ASXASE Technology Holding Co., Ltd. | $92B | 46.8× | 19.9× | 19.5% | 8.5% | 17% |
| FORMFormFactor, Inc. | $8B | 72.2× | 49.8× | 45.6% | 12.8% | 11% |
| LRCXLam Research Corporation | $301B | 35.7× | 29.3× | 51.1% | 32.3% | 72% |
| TSEMTower Semiconductor Ltd. | $21B | 71.6× | 36.5× | 26.9% | 16.9% | 10% |
| UMCUnited Microelectronics Corporation | $49B | 19.1× | 9.9× | 30.6% | 33.3% | 21% |
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 41.4× its last 12 months of profit (Thu 5 Nov close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now41.4×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Technology companies on the NYSE were priced at a typical 39.5× their yearly profit (Tue 27 Oct close).
- Now39.5×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $28 a share — 76% below the $118.36 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $28 | 76% below $118.36 |
| Levered | $28 | 77% below $118.36 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.