Qnity Electronics Inc (Q) stock analysis
Qnity Electronics Inc (Q) clears 3 of this site's 8 mechanical value filters, 3 of 8 Buffett-style checks and 1 of 5 Lynch-style checks. At $108.78 it trades 40.3% above this site's neutral DCF value (a margin of safety of -40.3%). Its earnings quality rates Strong and it returns 0.0% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Qnity Electronics do?
Qnity Electronics supplies materials and technologies used to make semiconductors and electronic devices.
What stands out about Qnity Electronics?
- The share price implies 16.6% yearly growth. At $108.78, Q's free cash flow of $4.54 per share would have to grow 16.6% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (42.90), PEG Ratio < 1.5 (2.36) and EPS Growth YoY > -5% (-22.1%); the other 3 pass and 2 were not evaluated. See every filter.
- Well below its 52-week high. At $108.78, Q trades 38.1% below its high of $175.64, and 47.9% above its low of $73.54. See the range.
- Weakest against peers: return on equity. At 8% (peer median 25%) it ranks 17th of 20 among semiconductors stocks this site tracks. See the ranking.
- Insiders have been buying. 1 open-market purchase was reported in SEC Form 4 filings in the last 90 days, about $0.9 million in all. See the Insider Buying Tracker.
How has Qnity Electronics' share price moved?
The interactive price chart needs JavaScript.
Is Qnity Electronics undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -40.3%
- Wall St. analyst rating Buy · 4.21/5 14 analysts this month: 4 strong buy, 9 buy, 1 hold, 0 sell, 0 strong sell (Finnhub). Down from 4.23 last month.
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −3.62 · accruals −4.1% of assets · 162% of profit arrived as cash · stock comp 0.4% of revenue · share count +0.1% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) 0.0% net Latest fiscal year (2025): dividends 0.1% + buybacks 0.0% − stock comp 0.1%, as a share of today's market cap. Stock comp outruns what comes back in cash. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) n/a (too few years of filings)
- PEG (growth at a reasonable price) 2.36 · Well above fair P/E 42.9× ÷ 18.1% a year of growth behind it. 265th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 1 of 4 · misses capital-light (n/a), cash back, price Capital-light growth: cannot be measured (too few years of filings); Profit is real: cleared; Cash to owners: not cleared (0.0% a year net); Fair price (PEG): not cleared (PEG 2.36, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 1 flag
- Standing vs. sector peers 1 of 5 measures above the median Compared with the 19 other semiconductors stocks this site tracks: 1 in the top third, 2 in the bottom third.
How does Qnity Electronics compare with its peers?
1 of 5 measure sits above the median of the 19 other semiconductors stocks tracked here, 1 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 42.5× 42.9× –11th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 2.5% 4.2% ✓7th of 20
- Return on equityhigher is better · peer median 25% 8% ✕17th of 20
- Net marginhigher is better · peer median 26.9% 11.3% ✕16th of 20
- Debt / equitylower is safer · peer median 0.29 0.55 –13th of 20
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and Q doesn't clear enough of it yet. In its favor: Q converts sales into profit at healthy margins, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: Q isn't clearing the return-on-equity bar he'd want to see right now, and its five-year average return on equity falls short too, so this isn't just a one-off dip, carries more debt relative to equity than he typically tolerates, hasn't grown earnings per share fast enough over five years to impress him, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✕
- ROE (5yr avg) > 11% ✕
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
Lynch looked for growth stories that weren't overpriced for that growth, and Q falls short of his bar. In its favor: Q is backing its growth up with real free cash flow. Where it comes up short: Q fails his signature PEG test, he'd call this pricey for the growth on offer, is growing earnings outside the 10–25% range he considered the sustainable sweet spot, is leaning on more debt than he liked a growth story to carry, and is asking investors to pay a steep multiple for that growth.
- PEG < 1 ✕
- EPS growth 10%-25% ✕
- Debt/Equity < 0.5 ✕
- P/E < 27 ✕
- Price/FCF < 30 ✓
- Bonus: insiders buying (90d) 1 buy, ~$0.9M
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Qnity Electronics pass?
- Market Cap > $25B $25.1B
- Trailing P/E < 25 42.90
- PEG Ratio < 1.5 2.36
- Price/Book < 8 3.46
- Price/Sales < 7 4.83
- EPS Growth YoY > -5% -22.1%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Qnity Electronics' margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is Qnity Electronics in its 52-week range?
What is the short interest in Qnity Electronics?
4,572,271 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Qnity Electronics? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +17%
- Short interest under 5% of float 2.2%
- Passes most of the 6 fundamental filters 3/6 passed
- Price run-up backed by value, not just momentum +48% off 52wk low
- Debt/equity stable since 2024 0.00 → 0.55
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Qnity Electronics shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from Q's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Qnity Electronics' 10-year financials show?
From Q's own 10-K filings (SEC EDGAR): up to the last 3 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Qnity Electronics
What kind of company is Qnity Electronics?
Qnity Electronics supplies materials and technologies used to make semiconductors and electronic devices. This site groups it with Semiconductors stocks.
Is Qnity Electronics trading above or below its DCF value?
At $108.78, Q trades 40.3% above this site's neutral DCF value of $77.51 per share, a margin of safety of −40.3%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Qnity Electronics pass?
Q passes 3 of 8. It passes Market Cap > $25B ($25.1B), Price/Book < 8 (3.46) and Price/Sales < 7 (4.83). It misses Trailing P/E < 25 (42.90), PEG Ratio < 1.5 (2.36) and EPS Growth YoY > -5% (-22.1%). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is Qnity Electronics' share price pricing in?
At $108.78, Q's free cash flow of $4.54 per share would have to grow 16.6% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Are Qnity Electronics's insiders buying its shares?
Yes: 1 open-market insider purchase of Qnity Electronics shares, worth about $0.9 million in total, was reported in SEC Form 4 filings in the 90 days up to this page's last update. Only open-market purchases count here, not option exercises or stock awards. See the Insider Buying Tracker.
When does Qnity Electronics report earnings next?
Qnity Electronics's next earnings report is expected on November 4, 2026, with analysts expecting earnings of $1.23 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +15.4%.
Where do these numbers come from?
- Financial statements: Qnity Electronics's 10-K annual report for the year ended Dec 31, 2025, filed Feb 26, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Qnity Electronics Inc analysis
This page shows every value-investing check the site runs on Qnity Electronics Inc (Q) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.