QinetiQ Group plc – Value Analysis (LONDON:QQ) : December 21, 2017

Capitalcube gives QinetiQ Group plc a score of 63.

Our analysis is based on comparing QinetiQ Group plc with the following peers – Ultra Electronics Holdings plc, Chemring Group PLC, BAE Systems plc, Rolls-Royce Holdings plc and Cobham plc (ULE-GB, CHG-GB, BA-GB, RR-GB and COB-GB).

Investment Outlook

QinetiQ Group plc has a fundamental score of 63 and has a relative valuation of NEUTRAL.

Fundamental Score

Access our research and ratings on QinetiQ Group plc

Company Overview

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It trades at a lower Price/Book multiple (2.07) than its peer median (2.88).
  • We classify QQ-GB as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • QQ-GB has relatively high profit margins while operating with median asset turns.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • QQ-GB‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • QQ-GB‘s revenues have grown more slowly than the peer median over the last few years, which combined with the stock price’s relatively low P/E ratio suggests substandard growth expectations relative to peers.
  • The company’s level of capital investment is relatively low and suggests it is milking the business.
  • QQ-GB currently does not have any debt.

Access our research and ratings on QinetiQ Group plc

Leverage & Liquidity

QQ-GB currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 21.15%.
  • All 5 peers for the company have an outstanding debt balance.

Access the detailed analysis for QinetiQ Group plc

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Ultra Electronics Holdings plc 20.46 1.92 7.61 27.52
Chemring Group PLC 30.63 1.42 3.66 48.84
BAE Systems plc 21.85 0.98 1.63 34.6
Rolls-Royce Holdings plc 20.29 1.38 12.06 16.97
Cobham plc 26.68 1.54 -2.74 -1.83
QinetiQ Group plc 0 1.26 122.78 999
Peer Median 21.15 1.4 5.63 31.06
Best In Class 20.29 1.92 122.78 999

Looking for more metrics and analysis for QinetiQ Group plc?

Company Profile

QinetiQ Group plc engages in the provision of technology development and consultancy services to the defense, security, and related markets. It operates through the EMEA Services and Global Products segments. The EMEA Services segment technical assurance, test and evaluation and training services. The Global Products segment fibre sensing solutions to deliver decision-ready data in multiple vertical markets. The company was founded on July 1, 2001 and is headquartered in Farnborough, the United Kingdom.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.