NYSE: Q · Semiconductor Materials & Equipment
Qnity Electronics
Qnity Electronics, based in Wilmington, Delaware, was DuPont’s Electronics business until it became an independent public company on November 1, 2025. It describes itself as one of the largest global leaders in materials and solutions for the semiconductor and electronics industries, with two segments: Semiconductor Technologies (CMP pads and slurries, cleaning chemistries and lithography materials; $2,642 million in 2025) and Interconnect Solutions (materials such as Kapton and Pyralux; $2,112 million). 2025 net sales rose 10% to $4,754 million, with 79% from Asia Pacific (China $1,570 million). Over 90% of revenue comes from consumable or unit-driven products. Samsung Electronics (11%) and TSMC (8%) are its largest customers.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 1, 2026 09:52 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Built on10-K FY2025 · filed 2026-02-2610-Q (quarter ended 2026-09-30) · filed 2026-11-04Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 8.5%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- —
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- —
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- —
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.75x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 0 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 40.7x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.36
Higher than 51% of 372 non-financial companies
Average yearly growth over the years shown
Latest fiscal year (FY2025)
Return on capital above (or below) its estimated cost
Below 0 means more cash than debt
Higher than 60% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$117.11close on 2026-11-04
Market cap$24.53B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 40.7x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.3x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- —
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 4.0%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.1%
At FY2025 year-end: 24.7x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 2.3x
Book value at FY2025 year-end
At FY2025 year-end: —
EBITDA for FY2025
At FY2025 year-end: 5.8%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$1.28B → $1.56B (vs. a year earlier)↑ +21.9%$1.28B → $1.56B (vs. a year earlier)
- Net income$223M → $196M (vs. a year earlier)↓ −12.1%$223M → $196M (vs. a year earlier)
- Diluted EPS$1.01 → $0.87 (vs. a year earlier)↓ −13.9%$1.01 → $0.87 (vs. a year earlier)
- Cash$961M → $1.12B (vs. previous quarter-end)↑ +17.0%$961M → $1.12B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 4, 2026.
Management outlook ↑ Raised
Raised full-year guidance. Source sentence
Qnity is raising full‑year guidance based on strong third‑quarter performance and continued momentum in the business.
Key changes
Gross margin 47.8%. Source sentence
Gross Margin and Adjusted Gross Margin (1) of 47.8%
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Qnity Electronics, Inc.
- Headquarters
- WILMINGTON, DE
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: Q
- Industry
- Semiconductor Materials & Equipment
- CIK
- 2058873
Workforce (as of FY2025 year-end)
Employees
10,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 57 days after quarter end (Feb 26, 2026). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 35–57 days after quarter end over the last 5 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 4, 2026 (+35 days) | Nov 4, 2026 10-Q (+35 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 4, 2026 10-Q (+35 days) |
| Q1 FY2026 | Mar 31, 2026 | May 12, 2026 (+42 days) | May 12, 2026 10-Q (+42 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 26, 2026 (+57 days) | Feb 26, 2026 10-K (+57 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 6, 2025 (+37 days) | Nov 18, 2025 10-Q (+49 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Semiconductor Technologies
CMP pads and slurries
Polishing pads and slurries for chemical mechanical planarization.
Semiconductor Technologies
Cleaning and etch chemistries
CMP cleaning, selective etching and post-etch residue removal.
Semiconductor Technologies
Lithography and packaging materials
Photoresists and materials for advanced packaging.
Interconnect Solutions
Polyimide films and laminates
Kapton, Pyralux, Oasis and Interra brands for flexible circuits and electronics.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
Qnity does not state a market share in its 10-K.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)
07
Recent strategic focusSite analysis
Recent developments.
Q2 2026 results
Q2 net sales $1,429M (vs $1,170M); net income to common $124M (vs $188M); diluted EPS $0.59 (vs $0.90).
Source: Form 10-Q (quarter ended 2026-06-30)
CFO appointment
Ken Rizvi named SVP and CFO effective October 1, 2026.
Source: Form 8-K (2026-08-21) — Item 5.02
Capital return
$500M share repurchase authorization approved February 20, 2026; quarterly dividend $0.08.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
0.76x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$285M ÷ $376M = 0.76x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
7.4%
formularesearch & development expense ÷ revenue × 100
e.g.$354M ÷ $4,754M × 100 = 7.4%
Where the money goes, over time
Unit: $M. Capex went from $231M in FY2023 to $285M in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
08
Key figures at a glanceFrom SEC data
FY2023–FY2025, 3 years.
Revenue (FY2025)
$4.75B
As reported in the 10-K
Revenue CAGR (2 years)
+8.5%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($4,754M ÷ $4,035M) ^ (1÷2) − 1 = 8.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
—
formulaoperating income ÷ revenue × 100
ROE (FY2025)
8.2%▲favorable
3-year average: 6.5%
As reported in the 10-K
P/B (FY2025 end)
2.32x
formulafiscal year-end closing price ÷ book value per share
e.g.$81.65 ÷ $35.16 = 2.32x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
—
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +8.5% a year over 2 years (strong growth)
From $4.04B in FY2023 to $4.75B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Equity ratio is 50.4% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 3 of 3 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ―
ROE averaged 6.5% over 3 years (latest: 8.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- DuPont
07 · what it does
Key activities
- Semiconductor Technologies: CMP consumables, cleans, lithography and advanced packaging materials
- Interconnect Solutions: metallization, laminates and polyimide films
- Direct sales and distributors
06 · what it draws on
Key resources
- More than 10,000 employees (about 60% in Asia Pacific)
- Over 50 years of electronics materials experience
- Manufacturing sites and application labs
02 · why customers buy
Value propositions
- Consumable materials for semiconductor and electronics manufacturing, with expertise across the electronics value chain.
04 · how it keeps them
Customer relationships
- Ongoing relationships with chip and electronics makers.
03 · how it reaches them
Channels
- Direct sales representatives with local and global technical support.
01 · who it serves
Customer segments
- Nearly all of the world’s top 20 semiconductor manufacturers
- Electronics and device makers
- Top ten customers 34% of 2025 sales
09 · where money goes
Cost structure
FY2025, share of revenue ($4.75B)
- Cost of revenue53.8%
- Research & development7.4%
- Selling, general & administrative13.0%
Depreciation & amortization (inside the costs above): $376M. Capital spending: $285M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Net sales $4,754M (2025)
- Semiconductor Technologies $2,642M; Interconnect Solutions $2,112M
- Asia Pacific $3,747M; Americas $629M; EMEA $378M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Develops and supplies consumable materials used in chip manufacturing and electronic device assembly, so revenue tracks wafer starts and device volumes.
01 what it draws on
Inputs & resources
- More than 10,000 employees (about 60% in Asia Pacific)
- Over 50 years of electronics materials experience
- Manufacturing sites and application labs
02 what it does
Activities
- Semiconductor Technologies: CMP consumables, cleans, lithography and advanced packaging materials
- Interconnect Solutions: metallization, laminates and polyimide films
- Direct sales and distributors
03 who it serves
Customers
- Nearly all of the world’s top 20 semiconductor manufacturers
- Electronics and device makers
- Top ten customers 34% of 2025 sales
04 how money comes in
How it earns
- Net sales $4,754M (2025)
- Semiconductor Technologies $2,642M; Interconnect Solutions $2,112M
- Asia Pacific $3,747M; Americas $629M; EMEA $378M
How the business makes money
- Spun off from DuPont on November 1, 2025.
- Long-term debt of $4,003M at end-2025 (none at end-2024).
- $500M buyback authorized February 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Qnity diversifies its supply chain to limit tariff exposure.
Trade & export rules
Tariff exposure
Says its diversified supply chain limits exposure to tariff risk.
Supports and constrainsTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
Environmental permits and rules
Subject to extensive laws and permits on pollution, product content, greenhouse gases and hazardous materials.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Semiconductor Technologies
2,642 (56%)Interconnect Solutions
2,112 (44%)
Source: Form 10-K (FY2025) Segment net sales; total $4,754M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
China — 33% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
China
1,570 (33%)South Korea
725 (15%)Taiwan
707 (15%)Other Asia Pacific
745 (16%)United States
591 (12%)EMEA
378 (8%)Other Americas
38 (1%)
Source: Form 10-K (FY2025) Net sales by geographic region; Other Asia Pacific derived from Rest of Asia Pacific less South Korea and Taiwan.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Capital tie / equity stake
DuPont
Separated from DuPont via pro rata share distribution effective November 1, 2025; DuPont holds no ownership interest.
13
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
14
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Qnity’s competitors include companies outside the U.S., including in countries building domestic semiconductor ecosystems; the 10-K does not name them.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
Peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Compensation peer group from the 2026 proxy statement.
- Agilent Technologiessite ↗
- AMETEKsite ↗
- Avantorsite ↗
- Coherentsite ↗
- Entegrissite ↗
- Keysight Technologiessite ↗
- MKS Instrumentssite ↗
- Qorvosite ↗
- Skyworks Solutionssite ↗
- Teledynesite ↗
- Teradynesite ↗
- Trimblesite ↗
- Zebra Technologiessite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Profit over time (operating → net)
Unit: $M
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
| Line item | FY2023In next year’s 10-K | FY2024In next year’s 10-K | FY202510-K on EDGAR ↗ |
|---|---|---|---|
| Income statement ($M) | |||
| Revenue | 4,035 | 4,335 | 4,754 |
| Pretax income | 632 | 901 | 962 |
| Net income (attributable) | 533 | 724 | 729 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 7.4% | 9.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 13.2% | 16.7% | 15.3% |
| Balance sheet ($M) | |||
| Total assets | — | 12,273 | 14,070 |
| Total equity | 11,184 | 10,896 | 7,366 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | — | 0 | 4,100 |
| Equity ratio | — | 86.7% | 50.4% |
| ROE | 4.8% | 6.6% | 8.2% |
| Cash flow ($M) | |||
| Operating CF | 882 | 1,061 | 1,273 |
| Investing CF | -226 | -172 | -285 |
| Financing CF | -628 | -848 | -248 |
| Free cash flowcalccash flow from operations − capital expenditures | 651 | 861 | 988 |
| Cash and equivalents | — | 166 | 915 |
| Per share & other | |||
| EPS ($) | 2.42 | 3.31 | 3.30 |
| BVPS ($) | — | — | 35.16 |
| Dividend per share ($) | — | — | 0.14 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | — | 4.2% |
| P/E (x) | — | — | 24.7 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | — | — | 2.32 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Net income | Diluted EPS |
|---|---|---|---|
| 2026-09-30 | $1.56B+21.9% | $196M-12.1% | $0.87 |
| 2026-06-30 | $1.43B+22.1% | $136M-31.3% | $0.59 |
| 2026-03-31 | $1.32B+17.6% | $162M-18.6% | $0.72 |
| 2025-12-31 † | $1.19B | $109M | — |
| 2025-09-30 | $1.28B+11.1% | $223M+7.7% | $1.01 |
| 2025-06-30 | $1.17B | $198M | $0.90 |
| 2025-03-31 | $1.12B | $199M | $0.92 |
| 2024-09-30 | $1.15B | $207M | $0.95 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
Not enough data (operating income, equity, etc.) to compute ROIC/WACC.
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
6.7%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.3% − 3.6%
Past FCF growth (FY2023–FY2025)
+23.2%
Compound annual rate, 2 years
Past revenue growth (FY2023–FY2025)
+8.5%
Compound annual rate, 2 years
Inputs (FY2025): free cash flow $988M (operating CF − capex); enterprise value $27.72B = market cap $24.53B (latest close, 2026-11-04) + debt $4.1B − cash and short-term investments $915M; r = WACC of 10.3% using this page’s default assumptions (β 1.36, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$27.44B
FCF $988M ÷ (10.3% − 6.7%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.3% | 9.3% | 10.3% | 11.3% | 12.3% |
|---|---|---|---|---|---|
| 0% | 0.43x | 0.38x | 0.35x | 0.32x | 0.29x |
| 2% | 0.57x | 0.49x | 0.43x | 0.38x | 0.35x |
| 4% | 0.83x | 0.67x | 0.57x | 0.49x | 0.43x |
| 6% | 1.55x | 1.08x | 0.83x | 0.67x | 0.57x |
| 8% | 11.88x | 2.74x | 1.55x | 1.08x | 0.83x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.62x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -4.1%
A small share of profit rests on accounting estimates.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,273M ÷ $729M = 1.75x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($580M + $656M) ÷ 2 ÷ $4,754M × 365 = 47 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($597M + $661M) ÷ 2 ÷ $2,559M × 365 = 90 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 77.5%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 22.5%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 331 of 416
- Beta (adjusted)
- 1.36
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 79% of covered companies have more
above 1 = swings more than the market
- 162.1M shares reported by 1,330 13F filers ÷ 209.2M shares outstanding on 2026-07-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-08 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-31)
20
Strengths & weaknessesSite analysis
Strengths
1. Global leadership
One of the largest global leaders in semiconductor and electronics materials.
Evidence: Form 10-K (FY2025)
2. Recurring consumables
Over 90% of 2025 revenue from consumable or unit-driven products.
Evidence: Form 10-K (FY2025)
3. Long customer ties
Average relationship with top 10 customers exceeds 30 years.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Customer concentration
Samsung 11% and TSMC 8% of 2025 sales.
Evidence: Form 10-K (FY2025)
2. New leverage
Long-term debt of $4,003M at end-2025 versus none in 2024.
Evidence: Form 10-K (FY2025)
3. Lower quarterly earnings
Q2 2026 net income to common fell to $124M from $188M despite higher sales.
Evidence: Form 10-Q (quarter ended 2026-06-30)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
24.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.17%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
4%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
5.8%
(Operating CF − capex) ÷ market cap
1. AI-driven materials demand
Products enable AI, high-performance computing and advanced connectivity.
- What has to hold
- Advanced node and packaging volumes grow.
- The other side
- Cyclical chip demand.
Evidence: Form 10-K (FY2025)
2. Pure-play after spin-off
Independent from DuPont since November 2025.
- What has to hold
- Focus lifts growth and margins.
- The other side
- Stand-up costs and debt.
Evidence: Form 8-K (2025-11-03) — Items 1.01 and 5.01
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
38.1x
$915M vs. $24M
Interest coverage (operating income ÷ interest expense)
Not disclosed
The income statement has no operating income line.
Free cash flow ÷ dividends paid
76.0x
$988M vs. $13M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
Covers only the 3 fiscal years on record (FY2023–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Steady growth
Net sales rose each year from $4,035M (2023) to $4,754M (2025).
Source: Form 10-K (FY2025)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Qnity carries indemnification liabilities to DuPont for legacy matters ($99M current and $154M noncurrent at June 30, 2026); it could face up to about $100M more.
1 open matter
Legacy DuPont liabilities (incl. PFAS)
PendingEnvironmentalDuPont; Chemours; Corteva; states and municipalities
Under separation agreements Qnity shares legacy liabilities of DuPont and former affiliates, including PFAS matters such as the New Jersey Consent Order and the September 2026 North Carolina settlement by DuPont, Chemours and Corteva.
- Amounts
- $253M accrued
Source: Form 10-Q (quarter ended 2026-06-30) — Note on Commitments and Contingent Liabilities
Based on Form 10-Q (quarter ended 2026-06-30) — Note on Commitments and Contingent Liabilities, reviewed 2026-11-01. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Customer/supplier concentration
Top customers
- Company disclosure (summarized from the 10-K)
- Top ten customers were 34% of 2025 sales.
- Company’s stated mitigation
- To bolster resilience, we leverage multi-sourcing strategies for raw materials, maintain long-term agreements with key customers, and periodically build strategic inventory when demand visibility warrants.
- This site’s assessment
- Impact High / Likelihood Med
- 2Geopolitics & supply chain
China and Asia exposure
- Company disclosure (summarized from the 10-K)
- China was $1,570M of sales; governments seek domestic semiconductor ecosystems.
- Company’s stated mitigation
- This further supports our diversified supply chain while limiting exposure to tariff risk.
- This site’s assessment
- Impact High / Likelihood High
- 3Demand & macro
Semiconductor cycle
- Company disclosure (summarized from the 10-K)
- Sales track semiconductor and electronics production.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 4Law & regulation
Legacy DuPont liabilities
- Company disclosure (summarized from the 10-K)
- Indemnification liabilities for legacy matters ($253M at June 30, 2026), with reasonably possible exposure up to about $100M more.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Competition & technology shift
Foreign competitors
- Company disclosure (summarized from the 10-K)
- Competitors include companies backed by foreign governments.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
25
What to watch going forwardSite analysis
- Semiconductor demand from Samsung and TSMC.
- New CFO Ken Rizvi from October 1, 2026.
- Legacy PFAS-related indemnifications.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 1, 2026 09:52 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Built on10-K FY2025 · filed 2026-02-26Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Qnity Electronics’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.