IQE Plc (IQE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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IQE Plc

Why is IQE Plc ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.34%

Poor long term growth as Net Sales has grown by an annual rate of -3.40% and Operating profit at -205.75% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.48
OPERATING CASH FLOW(Y) Lowest at GBP 3.4 MM
PRE-TAX PROFIT(Q) At GBP -17.38 MM has Fallen at -49.49%
DEBT-EQUITY RATIO (HY) Highest at 65.84 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 74.16%, its profits have risen by 21%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is IQE Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

IQE Plc

79.88%

-0.73

103.54%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.40%

EBIT Growth (5y)

-205.75%

EBIT to Interest (avg)

-3.48

Debt to EBITDA (avg)

2.43

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.69

Tax Ratio

3.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.23%

ROCE (avg)

0.34%

ROE (avg)

0.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.98

EV to EBIT

-15.50

EV to EBITDA

20.89

EV to Capital Employed

1.77

EV to Sales

2.02

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.44%

ROE (Latest)

-18.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bullish

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

Higher at GBP -16.91 MM

RAW MATERIAL COST(Y)

Fallen by -67.36% (YoY

CASH AND EQV(HY)

Highest at GBP 16.99 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 3.4 MM

PRE-TAX PROFIT(Q)

At GBP -17.38 MM has Fallen at -49.49%

DEBT-EQUITY RATIO (HY)

Highest at 65.84 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.56 times

NET SALES(Q)

Lowest at GBP 45.25 MM

INTEREST(Q)

Highest at GBP 3.16 MM

NET PROFIT(Q)

Fallen at -32.23%

EPS(Q)

Lowest at GBP -0.03

Here's what is working for IQE Plc

Cash and Eqv

Highest at GBP 16.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -67.36% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for IQE Plc

Net Sales

At GBP 45.25 MM has Fallen at -31.45%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (GBP MM)

Pre-Tax Profit

At GBP -17.38 MM has Fallen at -49.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Operating Cash Flow

Lowest at GBP 3.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Debt-Equity Ratio

Highest at 65.84 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at GBP 45.25 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Interest

Highest at GBP 3.16 MM

in the last five periods and Increased by 44.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Net Profit

Fallen at -32.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Lowest at 2.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio