IQE PLC (GB:IQE)
LSE:IQE
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IQE plc
(LSE:IQE)
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Rating:50Neutral
Price Target:
56.00 p
▲(1013.32% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by weak financial performance (persistent losses, negative gross profit in 2025, and negative free cash flow alongside rising debt and falling equity). This is partially offset by strong technical momentum (price above key moving averages with positive MACD), while valuation remains challenging due to negative earnings and no dividend data.
Positive Factors
End-market exposure
IQE serves structurally growing end-markets—wireless RF, photonics/optical communications and sensing—areas with multi-year secular demand for higher-performance compound semiconductors. This diversified end-market exposure supports durable product demand and reduces dependence on a single cyclical customer segment.
Negative Factors
Negative gross profit
A negative gross profit signals that manufacturing costs and/or pricing are not covering direct production expenses. This undermines margin sustainability, limits ability to invest in R&D or capacity, and indicates structural competitiveness or cost-control issues that must be resolved to achieve long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
End-market exposure
IQE serves structurally growing end-markets—wireless RF, photonics/optical communications and sensing—areas with multi-year secular demand for higher-performance compound semiconductors. This diversified end-market exposure supports durable product demand and reduces dependence on a single cyclical customer segment.
Read all positive factors
IQE plc (IQE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£670.89M
Dividend YieldN/A
Average Volume (3M)6.84M
Price to Earnings (P/E)―
Beta (1Y)2.43
Revenue Growth-17.57%
EPS Growth4.55%
CountryUK
Employees577
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding1,320,656,300
10 Day Avg. Volume6,643,697
30 Day Avg. Volume6,841,931
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.54
Price to Sales (P/S)0.50
P/FCF Ratio-10.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£60.00Price Target Upside1092.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£119.05M
IQE plc Business Overview & Revenue Model
Company Description
IQE plc specializes in the development, manufacture, and sale of advanced semiconductor materials, producing compound semiconductor wafers—or epiwafers—through an epitaxy process. The company's operations span three primary segments: Wireless, Pho...
How the Company Makes Money
IQE makes money primarily by supplying compound semiconductor epi-wafers and related wafer-engineering services to semiconductor device manufacturers. Revenue is generated through (1) sale of custom and standard epi-wafers produced using processes...
IQE plc Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Neutral
The earnings call outlined significant improvements in adjusted EBITDA and wireless revenue growth, driven by strategic partnerships and product developments. However, these positives were tempered by a decline in photonics revenue, challenging macroeconomic conditions, and ongoing financial constraints, indicating a mixed outlook.Positive Updates
Adjusted EBITDA Improvement
Adjusted EBITDA improved significantly from £4.3 million to £8.2 million, reflecting decisive cost actions and increased efficiencies.
Negative Updates
Photonics Revenue Decline
Photonics segment revenue decreased by 16% to £49.9 million, due to softness in the 3D sensing and pixels market.
Read all updates
Q4-2024 Updates
Positive
Negative
Adjusted EBITDA Improvement
Adjusted EBITDA improved significantly from £4.3 million to £8.2 million, reflecting decisive cost actions and increased efficiencies.
Read all positive updates
Company Guidance
In the recent IQE full-year results presentation, CEO Jutta Meier emphasized the company's strategic focus on financial discipline and operational agility amidst a challenging macroeconomic environment. The company's revenue for fiscal year 2024 remained stable at £118 million, while adjusted EBITDA improved significantly from £4.3 million to £8.2 million, attributed to decisive cost actions and efficiency improvements. The strategic review aims to make IQE debt-free and allow further investments in growth sectors such as GaN power and display technologies. Despite a 16% decline in Photonics revenue, Wireless revenue increased by 25% to £67.3 million, driven by higher penetration into the Asian market and increased GaN sales for 5G infrastructure. The company's cash position was bolstered by a convertible loan note fundraise, resulting in cash and cash equivalents of £20.6 million at the end of Q1 2025. Looking ahead, IQE expects revenue and adjusted EBITDA for fiscal year 2025 to align with analyst forecasts, with improvements anticipated in the second half of the year, driven by AI-related demand and strategic initiatives.IQE plc Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
44
Neutral
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.30M | 118.03M | 115.25M | 167.50M | 154.10M |
| Gross Profit | -3.24M | 4.45M | 2.33M | 26.40M | 17.64M |
| EBITDA | -507.00K | -6.22M | -1.11M | -46.68M | 5.23M |
| Net Income | -36.70M | -38.18M | -29.38M | -74.50M | -31.00M |
Balance Sheet | |||||
| Total Assets | 213.34M | 247.05M | 273.51M | 296.10M | 351.22M |
| Cash, Cash Equivalents and Short-Term Investments | 15.65M | 4.66M | 5.62M | 11.60M | 10.79M |
| Total Debt | 91.69M | 73.99M | 54.15M | 77.60M | 70.98M |
| Total Liabilities | 123.64M | 112.94M | 103.73M | 121.00M | 116.60M |
| Stockholders Equity | 89.69M | 134.11M | 169.78M | 175.10M | 234.62M |
Cash Flow | |||||
| Free Cash Flow | -4.63M | -17.72M | -12.20M | -12.00M | -3.00M |
| Operating Cash Flow | 3.72M | -2.88M | 5.92M | 5.90M | 15.39M |
| Investing Cash Flow | -8.39M | -10.19M | -17.96M | -10.70M | -18.30M |
| Financing Cash Flow | 15.82M | 12.16M | 6.63M | 4.73M | -11.17M |
IQE plc Technical Analysis
Positive
5.03
Price Trends
47.92
Positive
32.77
Positive
19.56
Positive
Market Momentum
1.82
Negative
52.95
Neutral
67.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IQE, the sentiment is Positive. The current price of 5.03 is below the 20-day moving average (MA) of 49.40, below the 50-day MA of 47.92, and below the 200-day MA of 19.56, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IQE.
IQE plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £829.18M | 81.57 | 26.93% | ― | 31.56% | -4.41% | |
73 Outperform | £56.68M | 4.51 | 22.93% | ― | 136.76% | ― | |
67 Neutral | £256.19M | 65.50 | 3.10% | 2.19% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £43.60M | 37.43 | 2.29% | 3.67% | -10.70% | ― | |
50 Neutral | £670.89M | -13.59 | -37.49% | ― | -17.57% | 4.55% | |
46 Neutral | £5.84M | 6.07 | 11.53% | ― | 61.15% | ― |
* Technology Sector Average
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IQE plc Corporate Events
Delistings and Listing ChangesPrivate Placements and Financing
IQE Expands Share Capital Following Warrant Exercises
Neutral
Jun 16, 2026
IQE plc has received notices to exercise warrants over 5,864,624 ordinary shares at 13.5 pence, with the new stock set to be admitted to trading on AIM around 17 June, ranking equally with existing shares. The warrant exercises modestly expand IQE...
Business Operations and StrategyLegal Proceedings
IQE strikes multi-year InP supply pact with Tower Semiconductor and settles IP dispute
Positive
Jun 15, 2026
IQE has signed a multi-year agreement to supply indium phosphide epiwafers to Tower Semiconductor for use in silicon photonics platforms that underpin next-generation optical connectivity in AI-focused data centres. The deal includes minimum purch...
Business Operations and StrategyLegal Proceedings
IQE seals multi-year InP supply pact with Tower, settling IP dispute
Positive
Jun 15, 2026
IQE plc, a leading provider of compound semiconductor wafers, has signed a multi-year agreement to supply Indium Phosphide epiwafers to Tower Semiconductor for use in advanced silicon photonics platforms serving AI-driven data centre connectivity....
Executive/Board ChangesShareholder Meetings
IQE Director Victoria Hull to Step Down at June AGM
Neutral
Jun 10, 2026
IQE plc has announced that Independent Non-Executive Director Victoria Hull will not stand for re-election at the company’s Annual General Meeting on 30 June 2026 and will step down from the board at the close of that meeting. The resolution...
Financial DisclosuresShareholder Meetings
IQE Sets June AGM and Publishes 2025 Annual Report
Positive
Jun 3, 2026
IQE plc has published its Notice of Annual General Meeting for 2026 and scheduled the meeting for 30 June in London, with details on voting and shareholder questions available via its website. The group has also released its 2025 Annual Report and...
Regulatory Filings and Compliance
IQE updates total voting rights following share capital review
Neutral
Jun 2, 2026
IQE plc has confirmed that as of 1 June 2026 its issued share capital comprises 1,312,590,972 ordinary shares, of which 4,115 are held in treasury, leaving 1,312,586,857 ordinary shares carrying voting rights. This updated total voting rights figu...
Business Operations and StrategyPrivate Placements and Financing
IQE Directors Back Fundraising With Share Subscriptions and New Warrants
Positive
May 29, 2026
IQE plc has disclosed that chair Mark Cubitt and non-executive director Bami Bastani participated in the company’s recent equity fundraising, subscribing for 1,295,305 and 518,122 new ordinary shares respectively at 19.8 pence per share. Fol...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
IQE shores up balance sheet with £81m raise as AI photonics demand accelerates
Positive
May 28, 2026
IQE reported full-year 2025 revenue down 17.6% to £97.3m, as wireless sales were hit by weak handset demand and macroeconomic uncertainty, while photonics revenue rose 15% on defence and AI data-centre strength. Adjusted EBITDA fell to £...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
IQE Raises £81m and Expands Board as New Shares Join AIM
Positive
May 28, 2026
IQE plc has completed its previously announced fundraising, securing £81 million in aggregate proceeds and confirming that all conditions have been satisfied or waived, in a move that strengthens its balance sheet as demand for compound semic...
Business Operations and StrategyFinancial Disclosures
IQE sets date for full‑year 2025 results and investor webcast
Neutral
May 20, 2026
IQE plc has scheduled the release of its full‑year results for the 12 months to 31 December 2025 on 28 May 2026, with management set to brief investors via a webcast that morning. The announcement sets expectations for a forthcoming detailed...
Business Operations and StrategyShareholder Meetings
IQE Wins Strong Shareholder Backing for Expanded Share Issuance Authorities
Positive
May 15, 2026
IQE plc has secured strong shareholder backing at a London general meeting, where investors approved resolutions giving the board wider authority to allot new shares and issue additional equity securities. Both measures passed with more than 99% o...
Regulatory Filings and Compliance
IQE updates total voting rights following April share capital review
Neutral
May 1, 2026
IQE plc has confirmed that as of 30 April 2026 its issued share capital comprises 979,886,435 ordinary shares of 1 pence each, of which 4,115 are held in treasury, leaving 979,882,320 ordinary shares in issue with voting rights. The company highli...
Private Placements and FinancingShareholder Meetings
IQE Calls Shareholder Vote on Major Capital Raise to Avert Liquidity Squeeze
Negative
Apr 29, 2026
IQE plc has sent shareholders a circular convening a 15 May general meeting in London to approve resolutions underpinning its proposed capital raise, including authority to issue up to 407,941,253 new ordinary shares on both pre‑emptive and ...
Private Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
IQE Raises £81m in Conditional Fundraising Backed by Major Shareholders
Negative
Apr 28, 2026
IQE has completed a placing and retail offer, issuing more than 65 million new shares at 19.8 pence to raise £13 million, as part of a wider capital raise alongside a strategic MACOM investment and the reinvestment of convertible loan notes. ...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
IQE launches discounted UK retail share offer alongside wider fundraising
Positive
Apr 27, 2026
IQE has launched a conditional retail offer of new ordinary shares via platform provider RetailBook, giving existing UK retail shareholders the chance to subscribe at 19.8 pence per share, a 10.1% discount to the 12‑month VWAP and a steep di...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
IQE Secures £81m MACOM-Led Investment and Ends Strategic Review
Positive
Apr 27, 2026
IQE plc has secured a strategic investment from long‑standing customer MACOM Technology Solutions and other existing shareholders, raising approximately £81 million through a mix of equity, new convertible loan notes, a placing and a re...
Business Operations and StrategyRegulatory Filings and Compliance
IQE Seeks Block Admission of Shares to Fund Employee Incentive Plan
Positive
Apr 2, 2026
IQE plc has applied for a block admission of 22 million new ordinary shares on AIM to satisfy awards under its existing Long Term Incentive Plan, which has been in place since 2019 and is used to incentivise all employees annually. The new shares,...
Business Operations and StrategyRegulatory Filings and Compliance
IQE Updates Total Voting Rights Following Share Capital Review
Neutral
Apr 1, 2026
IQE plc has confirmed that as of 31 March 2026 its issued share capital comprised 979,142,070 ordinary shares, of which 4,115 are held in treasury, leaving 979,137,955 ordinary shares in issue with voting rights. The updated total voting rights fi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.