Qnity Electronics, Inc. Q
Qnity Electronics remains a buy after Q2 2026 results delivered 22% organic sales growth and 53% adjusted EPS growth, prompting a raised full-year 2026 outlook on AI-driven demand for advanced packaging and semiconductor materials. The stock trades at a 47% EV/EBITDA discount and 49% P/S discount to the semiconductor-equipment peer median despite this accelerating growth profile, while FY2025 free cash flow of $988M provides a credible path to deleverage the $4.98B post-spin debt load.
The MACD histogram turned positive at +0.96 as of August 18, 2026, and a director purchased 1,000 shares at $138.14 on August 11, adding incremental confidence alongside the fundamental momentum.
What could go wrong
- Leverage overhang. Total debt surged from $191M in FY2024 to $4.98B in FY2025 following the spin-off, and stockholders' equity declined from $10.64B to $7.10B, creating balance-sheet fragility if end-demand softens.
- Gross margin compression. FY2025 gross margin fell to 41.82% from 46.11% in FY2024 even as revenue grew 9.7%, indicating mix or pricing pressure that could limit operating leverage if it persists.
- Insider net selling. Over the trailing 24 months, insiders recorded net dispositions of approximately 209.4M shares with net value of roughly -$756K, including 13 disposition transactions versus 9 acquisitions.
- Smart money conviction low. The smart money score stood at just 0.0471 as of the quarter ended 2026-06-30 across 62 funds, suggesting limited institutional conviction relative to the peer set.
What would change my mind
Where this comes from: Zacks news article, 2026-08-05; MarketBeat earnings call highlights, 2026-08-05 · FMP fundamentals, fiscal year ended 2025-12-31 · Peer relative data, as of 2026-08-18 · Technical indicators, as of 2026-08-18. Orin's read on Q; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All Q filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $2.2B | 0.0% of fund |
| Vanguard Portfolio Management | $1.7B | 0.1% of fund |
| State Street | $1.5B | 0.0% of fund |
| Geode Capital Management | $910.0M | 0.0% of fund |
| Durable Capital Partners | $743.6M | 7.2% of fund |
| Invesco | $663.0M | 0.1% of fund |
104 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 24 Form 4 filings, net −$691K. 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 →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 44.5× | 27.3× | 53.3× |
| EV/EBITDA | 20.1× | 15.5× | — |
| P/S | 5.00× | 4.40× | — |
| P/B | 3.6× | 1.9× | — |
Its P/E sits above all 4 of the last 4 years (+2.55σ from its own mean).
11.5%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$180
$165 – $189 · +47% against today's price
- 4 buy or overweight
- 0 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| QQnity Electronics, Inc. | $26B | 44.5× | 20.1× | 43.3% | 11.2% | 8% |
| ACLSAxcelis Technologies, Inc. | $4B | 39.5× | 27.6× | 43.0% | 10.7% | 9% |
| AMATApplied Materials, Inc. | $377B | 40.6× | 33.1× | 49.4% | 30.1% | 40% |
| AMKRAmkor Technology, Inc. | $13B | 23.8× | 10.2× | 15.5% | 7.4% | 12% |
| CIENCiena Corporation | $50B | 77.0× | 49.6× | 44.1% | 10.9% | 23% |
| ENTGEntegris, Inc. | $23B | 75.5× | 30.5× | 45.5% | 9.2% | 8% |
| FORMFormFactor, Inc. | $10B | 88.7× | 59.3× | 45.6% | 12.8% | 11% |
| KLACKLA Corporation | $245B | 51.0× | 43.4× | 61.3% | 35.6% | 85% |
| LRCXLam Research Corporation | $384B | 53.1× | 44.0× | 50.5% | 31.3% | 67% |
The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 14.5% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $31 | $138.50 · −77% | 2026-06-10 |
| Levered DCF | $30 | $138.50 · −78% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.