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IQE plc (lon:iqe)
IQE – Too Specialized For A Retail Investor?
IQE plc Financials
Item
Current Period
Previous Period
Year
2018
2017
Period
12 Months
12 Months
Revenue
£156m
£153m
Earnings
Adjusted Earnings
EBITDA
£26m
£37m
Adjusted EBITDA
Statutory Profit
£1m
£15m
Adjusted Profit
Total Debt
Net Debt
(£21m)
(£46m)
Commentary History
Date
Title
Show All
Mon 27 Jul 2020
IQE – Still Unclear To Me.
Mon 18 Nov 2019
IQE – Too Specialized For A Retail Investor?
IQE plc Share Price
Grade:
The Grey Grade - Shares That I Think Are Informative But A Very High Risk Because The Valuation Seems Too High.
Title:
IQE – Too Specialized For A Retail Investor?
Company:
IQE - IQE plc
Share Price Then:
49p
Author:
Ian Smith
Date:
Mon 18 Nov 2019
Comments:
IQE is the global leader in the design and manufacture of advanced semiconductor wafer products driving connected 5G technologies,
They have just released a trading update with predicted revenue down to £136m and £142m, moving from a cash surplus to £15-£20m of net debt and a predicted operating loss of around £5m down from an operating profit of £17m (2017) and £8m (2018).
However they are not a new business they have had an AIM listing since 2003.
Up until the mid 2016s the share price was fairly flat at around 16p, peaking at around 171p in Nov 2017 and since then you could draw a reasonably smooth straight line down to the current price.
Dr Drew Nelson, the CEO says
…IQE is confident it has not lost share and who remain very well positioned for returns to growth in 2020…
Whilst quite possibly true, the nature of the company’s products means that there is little reason to expect a share price rise in the short term and plenty of reason to expect a continual drop.
I can’t help but feel that there has been a share price bubble and relying on a semiconductor maker to stay relevant into the future and return to a possibly inflated value seems quite risky.
Wireless made up about 65% of the revenue, photonics 38% and Infrared 9% so the other areas on their web site such as Solar Panels, power and semiconductor materials are possible growth areas.
Read Count/ID:
977/10099
Buy/No Buy In A Nutshell
Negatives
A few years ago this was a Muddy Waters pick, questioning the accounts. Is it really making money or is destined to always lose money and hide that with turnover subsidised by government grants?
Positives
If I could really work out how they were doing commercially they may be as advanced as they market themselves to be.
Initial Review Price
56p
Last Review Price
62.25p
Last Review Date
02-Sep-2020
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