IQE plc (IQE) AI Stock Analysis

• Market Cap: £47.71M
• Dividend Yield: N/A
• Average Volume (3M): 6.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• 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: 977,633,400
• 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: 42 Neutral
• Price Target: 5.00p ▲(2.04% Upside)

IQE plc's overall stock score is primarily impacted by its weak financial performance, characterized by negative margins and cash flow issues. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable due to ongoing losses. However, the company's strategic review and focus on innovation provide some potential for future improvement.

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 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, 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 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: 4.90
• 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 4.9 is below the 20-day moving average (MA) of 5.07, below the 50-day MA of 5.56, and below the 200-day MA of 8.79, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 6.56 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	76 Outperform	£1.15B	85.42	4.64%	1.09%	-5.39%	-73.52%
NXQ	70 Outperform	£52.44M	-23.14	-3.85%	4.25%	-27.57%	-130.10%
GHH	67 Neutral	£163.20M	43.96	3.13%	2.16%	10.66%	21.19%
CML	66 Neutral	£49.82M	42.19	2.28%	3.67%	-21.33%	-11.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NANO	44 Neutral	£15.58M	-7.18	―	―	-3.25%	-172.09%
IQE	42 Neutral	£47.71M	-0.96	-37.55%	―	-24.75%	-110.79%

IQE plc Corporate Events

IQE Announces Total Voting Rights Update

IQE plc announced that as of 30 November 2025, its issued share capital consisted of 977,637,531 ordinary shares, with 4,115 shares held in treasury, resulting in 977,633,416 shares with voting rights. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

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 options that will total 666,667 shares, subject to a three-year holding period. This move is part of IQE’s strategy to align leadership incentives with long-term company performance, potentially impacting its market positioning by reinforcing executive commitment.

IQE plc Announces Total Voting Rights Update

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.

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.

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.

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.