IQE plc (IQE) AI Stock Analysis

• Market Cap: £54.35M
• Dividend Yield: N/A
• Average Volume (3M): 6.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• Revenue Growth: -24.75%
• EPS Growth: -110.79%
• Country: UK
• Employees: 577
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.03
• Shares Outstanding: 977,557,740
• 10 Day Avg. Volume: 6,643,697
• 30 Day Avg. Volume: 6,841,931
• PEG Ratio: -0.14
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -6.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: 5.50p ▲(0.18% Upside)

IQE plc's overall stock score is primarily impacted by its poor financial performance, characterized by negative margins and weak cash flow generation. The technical analysis indicates a bearish trend with weak momentum. Valuation metrics are unfavorable due to negative earnings and the absence of dividends. These factors collectively contribute to a low overall stock score.

IQE plc Business Overview & Revenue Model

Company Description

IQE 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 Money

IQE generates revenue primarily through the sale of its semiconductor materials to various clients in the telecommunications, automotive, and consumer electronics sectors. The company operates on a business model that includes long-term contracts with major manufacturers, ensuring a steady stream of income. Key revenue streams include the sales of epitaxial wafers and related products, along with licensing agreements for its proprietary technologies. Significant partnerships with industry leaders in the wireless and optoelectronics markets further enhance IQE's earnings potential, as they enable the company to leverage its advanced manufacturing capabilities and expertise to meet the growing demand for high-performance semiconductor solutions.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.27M	118.03M	115.25M	167.50M	154.10M	178.02M
Gross Profit	-2.51M	4.45M	2.33M	26.40M	17.64M	33.15M
EBITDA	-12.33M	-6.22M	-1.11M	-46.68M	5.23M	19.02M
Net Income	-49.14M	-38.18M	-29.38M	-74.50M	-31.00M	-3.27M
Balance Sheet
Total Assets	228.26M	247.05M	273.51M	296.10M	351.22M	371.29M
Cash, Cash Equivalents and Short-Term Investments	16.99M	4.66M	5.62M	11.60M	10.79M	24.66M
Total Debt	86.83M	73.99M	54.15M	77.60M	70.98M	69.76M
Total Liabilities	122.20M	112.94M	103.73M	121.00M	116.60M	110.85M
Stockholders Equity	106.06M	134.11M	169.78M	175.10M	234.62M	260.44M
Cash Flow
Free Cash Flow	-5.08M	-17.72M	-12.20M	-12.00M	-3.00M	22.92M
Operating Cash Flow	2.36M	-2.88M	5.92M	5.90M	15.39M	33.32M
Investing Cash Flow	-6.41M	-10.19M	-17.96M	-10.70M	-18.30M	-11.77M
Financing Cash Flow	13.36M	12.16M	6.63M	4.73M	-11.17M	-5.55M

IQE plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.49 is below the 20-day moving average (MA) of 5.91, below the 50-day MA of 6.98, and below the 200-day MA of 10.08, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 3.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OXIG	66 Neutral	$1.04B	40.82	7.03%	1.23%	6.42%	-48.89%
NXQ	66 Neutral	£51.80M	-23.01	-3.85%	4.28%	-27.57%	-130.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.47%	1.74%	359.50%
CML	50 Neutral	£48.95M	-2,681.82	-0.04%	4.00%	0.03%	-100.84%
NANO	44 Neutral	£17.74M	-6.51	―	―	-8.06%	-132.47%
IQE	43 Neutral	£54.35M	-1.08	-37.55%	―	-24.75%	-110.79%

IQE plc Corporate Events

IQE plc Announces Total Voting Rights Update

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.

IQE plc Reports H1 2025 Results Amid Strategic Review and Market Challenges

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.

IQE plc Issues 2025 Revenue Forecast Amid Strategic Review

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.

IQE plc Grants Share Options to Executive Chair

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.

IQE plc Updates Total Voting Rights and Share Capital Structure

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.

IQE plc Amends Total Voting Rights Announcement

IQE plc has amended its ‘Total Voting Rights’ announcement, initially released on 1 August 2025. As of 31 July 2025, the company’s issued share capital consists of 976,688,331 ordinary shares, with 4,115 held in treasury, resulting in 976,684,216 shares with voting rights. Shareholders should use this figure for calculations related to the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:IQE) stock is a Buy with a £0.45 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

IQE plc Announces Total Voting Rights Update

IQE plc has announced its total voting rights as of 31 July 2025, with the company’s issued share capital consisting of 967,403,009 ordinary shares, of which 967,398,894 have voting rights. This figure is crucial for shareholders to determine the need to notify their interest or changes in interest under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. This announcement provides clarity on shareholder voting rights, which is essential for maintaining transparency and compliance with regulatory requirements.

The most recent analyst rating on (GB:IQE) stock is a Buy with a £20.00 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.