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IQE plc
(LSE:IQE)
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Rating:48Neutral
Price Target:
48.00 p
â–¼(-1.54% Downside)
Action:Reiterated
Date:08/29/26
The score is held down primarily by weak financial performance (ongoing losses, negative gross profit in 2025, and still-negative free cash flow) and a valuation profile that is hard to support due to negative earnings and no dividend yield data. Offsetting this, technicals are moderately positive with price trading above key moving averages and neutral-to-positive momentum, though high beta suggests higher risk.
Positive Factors
Revenue Stability
Revenue has remained broadly stable despite difficult conditions, indicating an established customer base and continuing demand for IQE’s wafer products. Sustained revenue provides a platform for operational recovery if pricing, yields, and utilization improve.
Negative Factors
Persistent Unprofitability
Negative gross profit indicates pressure from pricing, manufacturing costs, or yields at the core product level. Continued operating and net losses show that revenue scale has not yet translated into sustainable profitability, limiting internal funding for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Stability
Revenue has remained broadly stable despite difficult conditions, indicating an established customer base and continuing demand for IQE’s wafer products. Sustained revenue provides a platform for operational recovery if pricing, yields, and utilization improve.
Read all positive factors
IQE plc (IQE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£631.60M
Dividend YieldN/A
Average Volume (3M)13.70M
Price to Earnings (P/E)―
Beta (1Y)2.40
Revenue Growth-17.57%
EPS Growth4.55%
CountryUK
Employees460
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding1,331,091,100
10 Day Avg. Volume8,987,434
30 Day Avg. Volume13,704,827
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.54
Price to Sales (P/S)0.50
P/FCF Ratio-10.51
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)-0.01
Revenue Forecast (FY)£125.53M
IQE plc Business Overview & Revenue Model
Company Description
IQE Plc is a holding company, which engages in the research, design, development, manufacture, and sale of compound semiconductor materials. It operates through the following segments: Wireless, Photonics, and CMOS++. The Wireless segment includes...
How the Company Makes Money
IQE primarily makes money by selling compound semiconductor epi-wafers and related services to customers that fabricate semiconductor devices. Its revenue model is mainly business-to-business and centered on: (1) Epi-wafer sales: Customers order e...
IQE plc Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 19, 2027
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
22
Negative
Balance Sheet
44
Neutral
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.30M | 118.03M | 115.25M | 167.50M | 154.10M |
| Gross Profit | -3.24M | 4.45M | 2.33M | 26.40M | 17.64M |
| EBITDA | -507.00K | -6.22M | -1.11M | -46.68M | 5.23M |
| Net Income | -36.70M | -38.18M | -29.38M | -74.50M | -31.00M |
Balance Sheet | |||||
| Total Assets | 213.34M | 247.05M | 273.51M | 296.10M | 351.22M |
| Cash, Cash Equivalents and Short-Term Investments | 15.65M | 4.66M | 5.62M | 11.60M | 10.79M |
| Total Debt | 91.69M | 73.99M | 54.15M | 77.60M | 70.98M |
| Total Liabilities | 123.64M | 112.94M | 103.73M | 121.00M | 116.60M |
| Stockholders Equity | 89.69M | 134.11M | 169.78M | 175.10M | 234.62M |
Cash Flow | |||||
| Free Cash Flow | -4.63M | -17.72M | -12.20M | -12.00M | -3.00M |
| Operating Cash Flow | 3.72M | -2.88M | 5.92M | 5.90M | 15.39M |
| Investing Cash Flow | -8.39M | -10.19M | -17.96M | -10.70M | -18.30M |
| Financing Cash Flow | 15.82M | 12.16M | 6.63M | 4.73M | -11.17M |
IQE plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | £329.82M | 81.69 | 3.33% | 0.81% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £49.02M | 3.86 | 22.93% | ― | 136.76% | ― | |
59 Neutral | £51.48M | 310.00 | -0.11% | 3.55% | -10.70% | -200.00% | |
58 Neutral | £483.87M | 106.28 | 11.47% | 2.68% | -1.40% | -67.76% | |
48 Neutral | £631.60M | -12.55 | -37.49% | ― | -17.57% | 4.55% | |
44 Neutral | £4.32M | 4.56 | -5.96% | ― | 61.15% | ― |
* Technology Sector Average
GB:IQE
IQE plc
47.45
39.63
506.78%
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IQE plc Corporate Events
Business Operations and StrategyFinancial Disclosures
IQE Sets Date for Interim Results Amid Growing Compound Semiconductor Demand
Positive
Aug 12, 2026
IQE plc has announced that it will publish its unaudited interim results for the six months ended 30 June 2026 on 7 September 2026, with management scheduled to present the figures via webcast at 9:00 a.m. the same day. The timing signals an upcom...
Regulatory Filings and Compliance
IQE Director Bastani Sells 500,000 Shares on AIM
Neutral
Aug 5, 2026
IQE plc has disclosed that non-executive director and PDMR Bami Bastani sold 500,000 ordinary shares in the company on 4 August 2026 at a price of £0.4583 per share. The transaction, executed on the London Stock Exchange’s AIM market, f...
Regulatory Filings and Compliance
IQE Updates Total Voting Rights Ahead of FCA Disclosure Calculations
Neutral
Aug 3, 2026
IQE plc has confirmed that as of 31 July 2026 its issued share capital comprises 1,331,072,589 ordinary shares, of which 4,115 are held in treasury, leaving 1,331,068,474 ordinary shares carrying voting rights. The updated voting share count provi...
Business Operations and StrategyFinancial Disclosures
IQE Lifts 2026 Revenue Guidance as AI and Data Centre Demand Surges
Positive
Jul 21, 2026
IQE plc reported that trading in the first half of 2026 exceeded management expectations, driven by strong demand across core segments and particularly for its Indium Phosphide solutions used in optical photonics for AI and data centre infrastruct...
Business Operations and Strategy
IQE Wins $14m Multi-Year Order for AI and Datacentre Semiconductors
Positive
Jul 14, 2026
IQE plc has secured a multi-year $14 million production order from a strategic global technology customer, with manufacturing to take place at its Newport foundry in Wales. The wafers will support applications in artificial intelligence and datace...
Business Operations and StrategyRegulatory Filings and Compliance
IQE updates share capital position and expands employee share plan
Neutral
Jul 1, 2026
IQE plc reported that as of 30 June 2026 it had issued share capital of 1,331,036,951 ordinary shares, of which 4,115 are held in treasury, leaving 1,331,032,836 shares in issue with voting rights for investors to use in regulatory disclosure calc...
Business Operations and StrategyExecutive/Board Changes
IQE adds MACOM executives to board as strategic ties deepen
Positive
Jul 1, 2026
IQE plc has strengthened its board by appointing MACOM Technology Solutions executives Robert Dennehy and David O’Carroll as non-executive directors, in line with a previously agreed board appointment arrangement between the two companies. T...
Business Operations and StrategyShareholder Meetings
IQE shareholders back all resolutions at 2026 AGM
Positive
Jun 30, 2026
IQE plc reported that all resolutions proposed at its 2026 Annual General Meeting in London were approved by shareholders on a poll, with both ordinary and special resolutions passing by strong majorities. Voting participation represented just ove...
Regulatory Filings and ComplianceShareholder Meetings
IQE to Publish London AGM Results via Regulatory News Service
Neutral
Jun 30, 2026
IQE plc, the leading global supplier of compound semiconductor wafer products and advanced materials, will hold its Annual General Meeting today in London, with shareholders able to attend in person. The company will publish the AGM results via th...
Private Placements and Financing
IQE Director Exercises Warrants as Share Capital Rises to 1.32 Billion
Neutral
Jun 19, 2026
IQE plc has announced that non-executive director Bami Bastani has exercised warrants over 683,921 ordinary shares at an exercise price of 13.5 pence per share, with the new shares expected to be admitted to trading on AIM around 24 June 2026. Fol...
Delistings and Listing ChangesPrivate Placements and Financing
IQE Expands Share Capital Following Warrant Exercises
Neutral
Jun 16, 2026
IQE plc has received notices to exercise warrants over 5,864,624 ordinary shares at 13.5 pence, with the new stock set to be admitted to trading on AIM around 17 June, ranking equally with existing shares. The warrant exercises modestly expand IQE...
Business Operations and StrategyLegal Proceedings
IQE strikes multi-year InP supply pact with Tower Semiconductor and settles IP dispute
Positive
Jun 15, 2026
IQE has signed a multi-year agreement to supply indium phosphide epiwafers to Tower Semiconductor for use in silicon photonics platforms that underpin next-generation optical connectivity in AI-focused data centres. The deal includes minimum purch...
Business Operations and StrategyLegal Proceedings
IQE seals multi-year InP supply pact with Tower, settling IP dispute
Positive
Jun 15, 2026
IQE plc, a leading provider of compound semiconductor wafers, has signed a multi-year agreement to supply Indium Phosphide epiwafers to Tower Semiconductor for use in advanced silicon photonics platforms serving AI-driven data centre connectivity....
Executive/Board ChangesShareholder Meetings
IQE Director Victoria Hull to Step Down at June AGM
Neutral
Jun 10, 2026
IQE plc has announced that Independent Non-Executive Director Victoria Hull will not stand for re-election at the company’s Annual General Meeting on 30 June 2026 and will step down from the board at the close of that meeting. The resolution...
Financial DisclosuresShareholder Meetings
IQE Sets June AGM and Publishes 2025 Annual Report
Positive
Jun 3, 2026
IQE plc has published its Notice of Annual General Meeting for 2026 and scheduled the meeting for 30 June in London, with details on voting and shareholder questions available via its website. The group has also released its 2025 Annual Report and...
Regulatory Filings and Compliance
IQE updates total voting rights following share capital review
Neutral
Jun 2, 2026
IQE plc has confirmed that as of 1 June 2026 its issued share capital comprises 1,312,590,972 ordinary shares, of which 4,115 are held in treasury, leaving 1,312,586,857 ordinary shares carrying voting rights. This updated total voting rights figu...
Business Operations and StrategyPrivate Placements and Financing
IQE Directors Back Fundraising With Share Subscriptions and New Warrants
Positive
May 29, 2026
IQE plc has disclosed that chair Mark Cubitt and non-executive director Bami Bastani participated in the company’s recent equity fundraising, subscribing for 1,295,305 and 518,122 new ordinary shares respectively at 19.8 pence per share. Fol...
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.