Business description

IQE is the leading supplier of epitaxial compound semiconductor wafers globally. The principal applications include radio frequency semiconductors, devices for optical networks, vertical cavity lasers, infrared semiconductors, power electronics and CPV solar cells.

Stock data

Market cap.£1098.6m
Last close145.30p
High / Low (52 weeks)178.8p / 50.2p
Stock market listingLN
Forecast net cash (£m)37.1
Forecast gearing ratio (%)N/A

Price performance

Relative *25.92.3175.4

* % Relative to local index

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Company news

IQE PLC - Semiconductor Wafer Pioneer

Tue, 06 Mar 2018 11:57:28 GMT

IQE plc: IQE exercises exclusive option to acquire cREO(TM) technology and IP ...

Fri, 16 Mar 2018 09:56:15 GMT

One monster growth stock I'd buy before IQE plc

Tue, 13 Mar 2018 16:07:30 GMT

Chipmaker IQE on track for record full-year results

Wed, 20 Dec 2017 09:33:45 GMT

Why I'd sell IQE plc in favour of this hidden tech gem

Sat, 24 Feb 2018 12:00:00 GMT

Investment summary

In recent weeks, IQE has been the victim of short-sellers who have issued reports querying the company's reliance on contribution from its two joint ventures. While licensing income from these contributed £8.0m and £6.7m to revenues and operating profit in FY15 and FY16, respectively, we expect this contribution to be only £2.0m in both FY17 and FY18 as the two prior years included fees related to the set-up of these joint ventures. Instead, it is the core wafer business which is driving revenue and earnings growth now. Excluding JV income, we forecast revenue growth for the core epitaxial wafer business of 18% and 10% for FY17 and FY18, respectively, driven by demand for photonics epitaxy.

Last updated on 02/03/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 114.0 29.0 17.6 2.60 55.9 45.9
2016A 132.7 31.7 20.6 3.00 48.4 43.4
2017E 150.1 35.5 23.7 3.26 44.6 38.8
2018E 165.2 40.3 28.3 3.56 40.8 32.3

Last updated on 20/02/2018

Latest video

Executive Interview - IQE

Industry outlook

It is likely that reports of disappointing iPhone X shipments and a cut in production of the iPhone X have been a factor in the recent sell-off. We believe that our estimates have made cautious assumptions regarding iPhone X sales. Moreover, there are numerous opportunities for IQE to sell similar products into competitive handsets and for other applications in the consumer and other sectors, underpinning management’s confidence in the outlook for FY18 and beyond.

Last updated on 02/03/2018

Key management

Godfrey Ainsworth, Chairman
Drew Nelson, CEO
Phillip Rasmussen, FD

Company address

Pascal Close
St Mellons
United Kingdom
+44 (0) 2920 839 400
View website