IQE PLC (GB:IQE)
LSE:IQE
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IQE plc
(LSE:IQE)
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Rating:51Neutral
Price Target:
9.00 p
▲(78.93% Upside)
Action:ReiteratedDate:01/20/26
The score is held down primarily by weak financial performance (negative profitability and deteriorating cash flow) and a loss-making valuation profile (negative P/E). This is partially offset by strong recent technical momentum, with the price trading above key moving averages and positive MACD.
Positive Factors
Leading supplier of advanced semiconductor materials
IQE's status as a specialist supplier of epitaxial wafers and substrates represents a durable business-model advantage. Its technical know‑how and manufacturing capability for compound semiconductors create high barriers to entry, supporting long-term customer stickiness and premium product demand.
Negative Factors
Very low gross margin
A 3.77% gross margin is structurally constraining: it implies limited ability to cover fixed costs, invest in R&D or absorb pricing pressure. Unless manufacturing yields or pricing improve, sustained low gross margins will hinder profitability and capital allocation flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Leading supplier of advanced semiconductor materials
IQE's status as a specialist supplier of epitaxial wafers and substrates represents a durable business-model advantage. Its technical know‑how and manufacturing capability for compound semiconductors create high barriers to entry, supporting long-term customer stickiness and premium product demand.
Read all positive factors
IQE plc (IQE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£260.33M
Dividend YieldN/A
Average Volume (3M)6.84M
Price to Earnings (P/E)―
Beta (1Y)2.48
Revenue Growth-24.75%
EPS Growth-110.79%
CountryUK
Employees577
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.02
Shares Outstanding978,699,460
10 Day Avg. Volume6,643,697
30 Day Avg. Volume6,841,931
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.02
Revenue Forecast (FY)£105.66M
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 ...
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 ...
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.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
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| 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
Positive
5.03
Price Trends
15.23
Positive
10.41
Positive
9.48
Positive
Market Momentum
3.15
Negative
61.66
Neutral
69.81
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 23.62, below the 50-day MA of 15.23, and below the 200-day MA of 9.48, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £402.50M | 27.44 | 26.93% | ― | 121.45% | 345.83% | |
73 Outperform | £65.18M | 3.57 | 22.93% | ― | 36.61% | ― | |
67 Neutral | £207.47M | 25.56 | 3.10% | 2.19% | 10.66% | 21.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | £37.70M | 5.88 | 2.29% | 3.67% | -21.33% | -11.35% | |
51 Neutral | £260.33M | -0.96 | -40.92% | ― | -24.75% | -110.79% | |
43 Neutral | £10.02M | -11.93 | 11.53% | ― | -3.25% | -172.09% |
* Technology Sector Average
GB:IQE
IQE plc
26.60
14.50
119.83%
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IQE plc Corporate Events
Regulatory Filings and Compliance
IQE Confirms Total Voting Rights and Share Capital Structure
Neutral
Feb 2, 2026
IQE plc has confirmed that as of 31 January 2026 its issued share capital comprises 978,271,334 ordinary shares, of which 4,115 are held in treasury, leaving 978,267,219 ordinary shares in circulation with voting rights. The company highlighted th...
Business Operations and StrategyFinancial Disclosures
IQE lifts 2025 outlook on defence and AI demand as strategic review draws bidders
Positive
Jan 12, 2026
IQE reported strong trading momentum in the second half of 2025, driven by faster-than-expected funding for US military and defence programmes, robust photonics demand from AI and data centre markets, and higher wireless sales linked to new handse...
Business Operations and StrategyRegulatory Filings and Compliance
IQE Updates Total Voting Rights and Employee Share Plan Allotments
Neutral
Jan 5, 2026
IQE plc has confirmed that as of 31 December 2025 its issued share capital comprised 978,263,616 ordinary shares, of which 4,115 are held in treasury, leaving 978,259,501 ordinary shares in issue with voting rights, a figure investors should use f...
Business Operations and Strategy
IQE Extends Strategic Supply Agreement with Lumentum
Positive
Dec 8, 2025
IQE plc has announced a multi-year extension of its strategic supply agreement with Lumentum Holdings Inc. This extension builds on their longstanding relationship, leveraging IQE’s VCSEL expertise to advance 3D sensing technologies across L...
Regulatory Filings and Compliance
IQE Announces Total Voting Rights Update
Neutral
Dec 1, 2025
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 de...
Business Operations and StrategyExecutive/Board Changes
IQE plc Grants Share Options to Executive Chair
Neutral
Dec 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 options that will total 666,66...
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.