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IQE PLC (GB:IQE)
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IQE plc (IQE) AI Stock Analysis

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GB:IQE

IQE plc

(LSE:IQE)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
5.00p
▼(-2.53% Downside)
IQE plc's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are significant concerns, compounded by a negative P/E ratio and lack of dividend yield. The technical analysis further highlights bearish momentum, with the stock trading below key moving averages and indicators suggesting oversold conditions.
Positive Factors
Market Position
As a leading supplier in the semiconductor industry, IQE's strong market position supports its ability to capture demand in growing sectors like 5G and IoT.
Revenue Model
IQE's revenue model benefits from long-term supply agreements and collaborations, ensuring stable income streams from emerging tech applications.
Partnerships and Collaborations
Strategic partnerships enhance IQE's product offerings and market reach, fostering innovation and competitive advantage in the semiconductor market.
Negative Factors
Revenue Decline
Stagnant revenue growth and declines from previous levels indicate challenges in market expansion and customer acquisition, impacting long-term growth.
Profitability Issues
Low profitability margins reflect cost pressures and operational inefficiencies, which could hinder future investments and competitive positioning.
Cash Flow Challenges
Negative cash flow growth indicates inefficiencies in converting earnings into cash, potentially limiting the company's ability to fund operations and growth initiatives.

IQE plc (IQE) vs. iShares MSCI United Kingdom ETF (EWC)

IQE plc Business Overview & Revenue Model

Company DescriptionIQE plc develops, manufactures, and sells advanced semiconductor materials. The company operates in three segments: Wireless, Photonics, and CMOS++. It manufactures compound semiconductor wafers or epiwafers using epitaxy process; offers wireless products, including GaAs, GaN, and InP-based technologies, as well as Si and Ge-based epitaxial wafer structures; and supplies GaAs HBTs, pHEMTs, and BiFETs/BiHEMTs for use in consumer mobile handsets, connected devices, 5G network infrastructure, WiFi 6, Bluetooth, and satellite communications. The company also provides photonics products, which include vertical cavity surface emitting lasers, a 3D sensing technology that enables facial recognition, gesture control, light detection and ranging (LiDAR), and other advanced sensing applications; indium phosphide (InP) laser and detector wafers that powers high speed, 5G telecommunication, and data communication fiber optic networks; Gallium Nitride (GaN) and gallium arsenide (GaSb) for multicolor uLED displays; and a range of gallium antimonide (GaSb) and InP materials that enables high definition infrared imaging and sensing in security, health monitoring, and environmental applications. In addition, it offers substrate products, such as GaSb, InP, InAs, InSb, GaSb, CZT, custom size or geometry wafers, polycrystalline materials, high purity group iii/v source materials, and bespoke orientation substrates. Further, the company provides nanoimprint lithography services. The company serves in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. IQE plc was founded in 1988 and is headquartered in Cardiff, the United Kingdom.
How the Company Makes MoneyIQE generates revenue primarily through the sale of its semiconductor materials, particularly epitaxial wafers, to a diverse customer base including major technology companies and device manufacturers. The company's revenue model is driven by the high demand for advanced materials in emerging technologies such as 5G telecommunications and Internet of Things (IoT) applications. Key revenue streams include long-term supply agreements with customers, project-based sales for specialized semiconductor applications, and collaborations with research institutions for developing innovative materials. Significant partnerships with leading tech firms and collaborations in research and development also contribute to IQE's earnings by enhancing its product offerings and expanding its market reach.

IQE plc Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:May 20, 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.
Q4-2024 Updates
Positive Updates
Adjusted EBITDA Improvement
Adjusted EBITDA improved significantly from £4.3 million to £8.2 million, reflecting decisive cost actions and increased efficiencies.
Wireless Revenue Growth
Wireless segment revenue increased by 25% to £67.3 million, driven by increased penetration into the Asian market and the Android ecosystem, as well as an increase in GaN sales for 5G infrastructure.
Strategic Partnerships and Product Development
IQE launched a joint development agreement with X-FAB for GaN power in Europe and continued development in MicroLED and Quantum Dot Laser foundry services, strengthening its position in emerging technologies.
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.
Macroeconomic and Industry Challenges
The macro environment remains challenging with slow industry recovery, weak global smartphone sales, and geopolitical tensions impacting supply chains.
Ongoing Debt and Financial Constraints
The company faces significant financial constraints with a net debt position and a balance sheet impacted by lease liabilities and interest payments. The strategic review aims to address these issues.
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
IQE plc is facing significant financial challenges. Revenue growth is stagnant, profitability is under pressure with negative margins, and cash flow generation is weak. The balance sheet shows increasing leverage, which could pose risks if operational performance does not improve. The company needs to address cost management and improve operational efficiencies to enhance financial stability.
Income Statement
45
Neutral
IQE plc has faced declining revenues, with a 1.5% increase from 2023 to 2024, but a significant drop from 2020 levels. Gross profit margin remains low at 3.77% for 2024, indicating cost pressures. Net profit margin is negative, which is concerning for profitability. The EBIT and EBITDA margins are also negative, reflecting operational challenges and a lack of profitability.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio has increased, reaching 0.55 in 2024, suggesting rising financial leverage. Return on Equity is negative due to net losses, indicating poor returns for shareholders. The equity ratio stands at 54.30%, showing a moderate reliance on equity financing, which provides some balance sheet stability.
Cash Flow
40
Negative
The free cash flow growth rate is negative, highlighting deteriorating cash generation capabilities. Operating cash flow to net income ratio is negative due to consistent net losses, indicating cash flow issues. Free cash flow to net income is also negative, underscoring inefficiencies in converting earnings into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue97.27M118.03M115.25M167.50M154.10M178.02M
Gross Profit-2.51M4.45M2.33M26.40M17.64M33.15M
EBITDA-12.33M-6.22M-1.11M-46.68M5.23M19.02M
Net Income-49.14M-38.18M-29.38M-74.50M-31.00M-3.27M
Balance Sheet
Total Assets228.26M247.05M273.51M296.10M351.22M371.29M
Cash, Cash Equivalents and Short-Term Investments16.99M4.66M5.62M11.60M10.79M24.66M
Total Debt86.83M73.99M54.15M77.60M70.98M69.76M
Total Liabilities122.20M112.94M103.73M121.00M116.60M110.85M
Stockholders Equity106.06M134.11M169.78M175.10M234.62M260.44M
Cash Flow
Free Cash Flow-5.08M-17.72M-12.20M-12.00M-3.00M22.92M
Operating Cash Flow2.36M-2.88M5.92M5.90M15.39M33.32M
Investing Cash Flow-6.41M-10.19M-17.96M-10.70M-18.30M-11.77M
Financing Cash Flow13.36M12.16M6.63M4.73M-11.17M-5.55M

IQE plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.13
Price Trends
50DMA
6.21
Negative
100DMA
7.67
Negative
200DMA
9.39
Negative
Market Momentum
MACD
-0.33
Negative
RSI
38.65
Neutral
STOCH
13.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IQE, the sentiment is Negative. The current price of 5.13 is below the 20-day moving average (MA) of 5.39, below the 50-day MA of 6.21, and below the 200-day MA of 9.39, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IQE.

IQE plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.04B40.824.64%0.87%-5.39%-73.52%
66
Neutral
£52.74M-23.54-3.85%4.16%-27.57%-130.10%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
£48.95M-2,681.822.28%3.64%-21.33%-11.35%
56
Neutral
£155.04M28.394.79%2.79%1.74%359.50%
44
Neutral
£17.74M-6.51-3.25%-172.09%
42
Neutral
£54.35M-1.08-37.55%-24.75%-110.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:IQE
IQE plc
5.13
-6.93
-57.46%
GB:OXIG
Oxford Instruments
1,958.60
-78.17
-3.84%
GB:CML
CML Microsystems
297.00
65.57
28.33%
GB:GHH
Gooch & Housego
492.00
45.04
10.08%
GB:NANO
Nanoco Group plc
9.35
-5.45
-36.82%
GB:NXQ
Quixant
88.50
21.10
31.31%

IQE plc Corporate Events

Regulatory Filings and Compliance
IQE plc Announces Total Voting Rights Update
Neutral
Oct 31, 2025

IQE plc announced that as of 31 October 2025, its issued share capital consists of 977,561,878 ordinary shares, with 4,115 shares held in treasury, resulting in 977,557,763 shares with voting rights. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, reflecting the company’s transparency and regulatory compliance.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £5.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Regulatory Filings and Compliance
IQE plc Announces Total Voting Rights Update
Neutral
Sep 30, 2025

IQE plc announced its total voting rights as of 30 September 2025, with an issued share capital of 977,552,089 ordinary shares, of which 4,115 are held in treasury. This results in 977,547,974 ordinary shares with voting rights, a figure that shareholders can use to determine the need to notify changes in their interest under the Financial Conduct Authority’s rules. This announcement provides transparency for stakeholders and ensures compliance with regulatory requirements, reinforcing IQE’s commitment to maintaining clear communication with its investors.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
IQE plc Reports H1 2025 Results Amid Strategic Review and Market Challenges
Negative
Sep 23, 2025

IQE plc reported a challenging first half of 2025, with revenue declining to £45.3 million from £66.0 million in the previous year, primarily due to reduced demand in wireless markets and delays in US military funding. Despite these setbacks, the company has made significant strides in innovation, particularly in GaN and microLED technologies, and maintains a strong customer pipeline. IQE is undergoing a strategic review, including potential sale discussions, and is focused on cost control and operational efficiency to navigate current market conditions and position itself for future growth.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
IQE plc Issues 2025 Revenue Forecast Amid Strategic Review
Neutral
Sep 9, 2025

IQE plc has issued a trading update indicating a revenue forecast for the financial year ending December 31, 2025, expected to be between £90.0m to £100.0m, with an adjusted EBITDA ranging from £(5.0)m to £2.0m. The announcement also highlights that revenue for the first half of 2025 is anticipated to be at least £44.0m with an adjusted LBITDA of £(0.4)m, reflecting the company’s ongoing strategic review and market positioning efforts.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
IQE plc Grants Share Options to Executive Chair
Positive
Sep 1, 2025

IQE plc announced that its Executive Chair, Mark Cubitt, has been granted nil cost share options over 166,667 ordinary shares as part of the company’s Long Term Incentive Plan. This grant is part of a series of planned awards, potentially reaching up to 666,667 shares, aimed at aligning leadership incentives with company performance. This strategic move underscores IQE’s commitment to retaining key leadership and enhancing its market position in the semiconductor industry.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Regulatory Filings and Compliance
IQE plc Updates Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2025

IQE plc announced that as of 31 August 2025, its issued share capital comprised 976,708,616 ordinary shares, with 4,115 held in treasury, resulting in 976,704,501 shares with voting rights. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how stakeholders manage their interests in the company.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £9.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

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.Date of analysis: Nov 15, 2025