Qinetiq Group PLC(QQ)
GBX --+0.00%
49Reward
43Risk
📊75%Data
Thin -11% profit margin
QQ
+0.0 · +0.00%
GBX · LSE
Qinetiq Group PLC | Industrials
Balanced
Market Cap:2.62Bn
ℹ️
Reward Rating
49
Moderate
Bottom 50% stock
75% data coverage
ℹ️
Risk Rating
43
Moderate
Risk Assessment
ℹ️

Educational tool only – Scores are based on historical data and financial metrics for informational purposes. This is not financial advice or a recommendation to buy or sell any security. Always conduct your own research or consult a qualified financial adviser.

ℹ️ Educational tool only · More

Market Performance

Stock returned +10.0% over the past year, broadly in line with market conditions.

Analyst Target

Analyst consensus price target: 545p.

What is Qinetiq Group PLC?

QinetiQ Group plc provides science and technology solution in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, and internationally. The company operates through EMEA Services and Global Solutions segments. The company is listed on the LSE in UK, operating in the Industrials sector, with a market capitalisation of 2.62B.

Financial Highlights

Investment Breakdown

📈 Growth
Moderate growth momentum — positive trajectory without breakout acceleration.
💰 Profitability
Profitability metrics are mixed — margins may be under pressure.
⚠️ Risk
Risk profile appears balanced versus broad market conditions.
💸 Valuation
Valuation is less clear with a negative earnings base.

OpenBook Logo Analysis

Reward: Moderate (49)

The scoring profile indicates limited reward potential at this time, with growth and momentum offering the most support. Risk indicators are moderate, consistent with typical market exposure.

For informational purposes only. Not financial advice.

Company Information
SectorIndustrials
Market Cap2.62B
P/E RatioN/A
Dividend Yield1.77%
52 Week High569.0674
52 Week Low331.3259
Last AnnualMarch
IPO Date2/10/2006
IncorporatedUK
Shares Outstanding524M
No. of Employees8,000
IndustryAerospace & Defense
ExchangeLSE
Beta0.269
CurrencyGBX

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Uses ISF.L (iShares FTSE 100 ETF)
Indicators

Performance Metrics

Historical returns

Annual Returns

Calendar year performance

Insufficient price history.
Fundamentals
Fundamentals Insights
Educational tool only. Not financial advice.

Business Snapshot

  • Revenue TrendDecelerating
  • Profitability TrendDeteriorating
  • Balance Sheet StrengthWeak
  • Cash GenerationStrong

Risk Flags

Structural indicators detected (5):
Profitability
  • Operating margin is 14.3pp below its recent average.
  • Return on equity has declined for 2 consecutive years (-29.6% latest).
Balance Sheet
  • Interest coverage is -3.83x (below 3.0x).
  • Net debt / EBITDA is above recent norm (5.28x latest).
  • Net debt has shown elevated year-over-year volatility.

What Changed This Year

Compared to 2024:
  • Net Income↓ 233.0%
  • Operating Income↓ 147.0%
  • EBITDA↓ 91.1%
  • Free Cash Flow↓ 23.4%

Income Statement

CAGR: N/A
CAGR: N/A
CAGR: N/A

Balance Sheet

CAGR: N/A
CAGR: N/A
CAGR: N/A
CAGR: N/A

Cash Flow

CAGR: N/A
CAGR: N/A
CAGR: N/A

Key Ratios

Net Margin
-9.61%
Net Income / Revenue
Operating Margin
-4.69%
Operating Income / Revenue
ROE
-29.64%
Net Income / Equity
Debt-to-Equity
0.22x
Net Debt / Equity
FCF Yield
4.29%
FCF / Market Cap

Community Discussion

4 today

Share your insights and read what others think about Qinetiq Group PLC

4 posts
0/500 characters
John Investor · 2 hours agoBullish
Really impressive Q3 results. Revenue growth of 15% YoY is strong given the current market conditions. The management team seems to be executing well on their strategic plan.
Sarah Chen · 5 hours agoBearish
Concerned about the increasing debt levels. While the P/E ratio looks attractive, the debt-to-equity ratio has been climbing. Would like to see more focus on deleveraging in the next few quarters.
Mike Trading · 1 day agoBullish
Been holding this for 3 years now. Solid dividend yield and consistent performance. Great for long-term investors looking for stability.
Emma Watson · 1 day agoNeutral
What are people's thoughts on the upcoming merger announcement? Could be a game changer for the industry.
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AI Community Insights

Analysis of the past 4 weeks

Community Summary

Community sentiment analysis...

Sentiment Analysis

Community engagement metrics

This Week

Total Posts12
Active Users8
Avg. Posts/Day2

Community Sentiment

Bullish50%
Neutral25%
Bearish25%
Ownership Analysis
Key Takeaway

Balanced ownership with meaningful insider stakes and moderate institutional participation.

14.8% Insider 59.5% Institutional 25.7% Float
Insider
Institutional
Public Float
74%
Total Owned
14.8%
Insider

Insider Ownership

Bullish

Insiders own 14.8%, which suggests meaningful management commitment to the business.

59.5%
Institutional

Institutional Ownership

Moderate

Institutions own 59.5%, which suggests a balanced ownership mix.

25.7%
Public

Public Float

Low

Public float is 25.7%, which points to a fairly balanced ownership structure.

Reward Rating Breakdown

Our reward rating analyses QQ's potential upside using 5 weighted factors. Each factor is scored 0-100, then combined using the weights shown below.

Overall Reward Rating
49
Moderate REWARD
Data Coverage: 75%

📈 Growth

Weight: 40%
55/100

Growth measures the company's ability to expand its business over time through revenue, earnings, and cash flow generation.

Historical (60%)
Revenue CAGR (3yr)
13.5%
Good
Net Income CAGR (3yr)
Neutral
FCF CAGR (3yr)
2.5%
Neutral
Forward Estimates (40%)
Rev Est Growth (NTM)
3.3%
Neutral
EPS Est Growth (NTM)
13.6%
Good
Analyst Target Upside
Neutral
🤖AI Analysis

QQ scored 55/100 for growth — blending a 3-year historical track record (60%) with analyst forward estimates (40%). Historical revenue CAGR of 13.5% is solid. Forward: analysts forecast 3.3% revenue growth next year, EPS expected to grow 13.6%. Overall a solid growth profile with positive momentum.

🚀 Momentum

Weight: 25%
50/100

Momentum is assessed relative to the FTSE 100 benchmark where available. Relative outperformance is a stronger signal than absolute return alone.

12M vs Benchmark 30%
Absolute return
No Benchmark
6M vs Benchmark 25%
Absolute return
No Benchmark
3M Return 20%
Neutral
Consistency 15%
3m vs 1Y/4 normalised
No Data
Volume Trend 10%
30d vs 90d avg volume
Neutral
🤖AI Analysis

Insufficient price history to assess momentum. Score defaulted to neutral (50).

💰 Profitability

Weight: 20%
48/100

Profitability examines both the current margin level and margin expansion trends. High and expanding margins indicate pricing power and operational efficiency.

Gross Margin 25%
100.0%
Sector avg 45%
Exceptional
Net Margin 20%
-9.6%
Sector avg 10%
Loss Making
FCF Conversion 20%
>200%
FCF / Net Income
Very Good
EBIT Growth (3yr) 15%
Neutral
ROE (TTM) 10%
-28.3%
Very Bad
ROA (TTM) 10%
5.1%
Good
🤖AI Analysis

QQ scores 48/100 for profitability, assessed sector-relative on margins and via absolute thresholds for capital efficiency. Gross margin of 100.0% is 122% above the sector average of 45% — indicating strong pricing power and competitive moat. The company is currently loss-making with a net margin of -9.6%. FCF conversion of >200% confirms high earnings quality — reported profits are well-backed by cash. Profitability is modest — margin improvement is the key lever to unlock higher returns.

💎 Valuation

Weight: 15%
33/100

Valuation is scored sector-relative — each metric is compared against the typical multiple for this industry, so a high P/E in Healthcare is judged differently to a high P/E in Energy. PEG and Price/FCF use absolute thresholds.

PEG Ratio 25%
1.23
Good Value
EV/EBITDA 25%
95.3x
Sector avg 12x
Very Expensive
Fwd P/E 20%
15.3x
Sector avg 18x
Good Value
Price/FCF 20%
23.3x
In Line
EV/Sales 10%
1.5x
Sector avg 1.5x
In Line
Net Debt/EBITDA Adj
5.3x
Very High
🤖AI Analysis

QQ received a valuation score of 33/100 using sector-relative scoring. A PEG of 1.23 shows growth reasonably supports the current price. Its Forward P/E of 15.3x is 15% below the sector average of 18x. EV/EBITDA of 95.3x sits 694% above the sector norm of 12x. Price/FCF of 23.3x is reasonable. Leverage is stretched at 5.3x Net Debt/EBITDA — this has applied a penalty to the valuation score. Overall the stock trades at a premium to sector peers, leaving limited margin of safety.

⚠️

Educational Tool Only

The reward rating and analysis shown above are based on historical financial data and quantitative metrics, provided for informational and educational purposes only. This is not financial advice and should not be interpreted as a recommendation to buy, sell, or hold any security. Past performance does not guarantee future results. Always conduct your own research or consult a qualified financial adviser before making investment decisions.

Risk Rating Breakdown

Our risk rating assesses QQ's downside potential using 4 weighted factors. Each factor is scored 0-100 (higher = riskier), then combined using the weights shown below.

Overall Risk Rating
43
Moderate RISK
Data Coverage: 100%

⚖️ Financial Solvency

Weight: 35%
70/100

Financial Solvency measures the company's ability to service and repay its debt obligations. Five sub-metrics are weighted to produce the composite score.

Interest Coverage (25%)
-3.8x
Danger Zone
Net Debt / EBITDA (20%)
5.3x
Dangerous
Current Ratio (20%)
1.12x
Tight
Debt Trend 3yr (15%)
+161%
Rapidly Deteriorating
FCF / Debt Coverage (20%)
81%
Exceptional
🤖AI Analysis

QQ has a financial solvency risk score of 70/100. This signals high leverage risk. Interest coverage is -3.8x—earnings barely cover debt service. Net debt is 5.3x EBITDA, well above the 3x warning threshold. Heavily leveraged companies face refinancing risk and are highly sensitive to rising rates or an earnings miss.

💼 Operational Quality

Weight: 30%
46/100

Operational Quality measures bottom-line efficiency, cash generation, capital productivity, and margin consistency — four equally weighted signals of business model resilience.

Net Margin (25%)
-9.6%
Loss Making
FCF Margin (25%)
5.8%
Adequate
Cash ROA (25%)
12.1%
Very Strong
Margin Stability (25%)
±7.3pp
Stable
🤖AI Analysis

QQ scores 46/100 for operational quality, indicating elevated operational risk. The company shows positive FCF margin of 5.8%, exceptional capital efficiency — Cash ROA of 12.1% is a standout metric. Key concerns: a negative net margin of -9.6% — the company is loss-making; moderate margin variance of ±7.3pp over 3 years. Overall the business is viable but not without risk. Investors should monitor whether margins are improving or deteriorating quarter on quarter.

📉 Volatility

Weight: 25%
5/100

Volatility measures price instability, worst-case drawdowns, and sensitivity to broader market moves.

Annualised Volatility (35%)
Max Drawdown (35%)
Beta (30%)
0.27
Very Defensive
🤖AI Analysis

QQ has a volatility risk score of 5/100. This indicates exceptional price stability — almost bond-like for an equity. Such stability is rare and appeals to risk-averse investors seeking equity exposure with minimal turbulence.

📊 Size Factor

Weight: 10%
35/100

Size factor captures existential risk. Smaller companies have higher failure rates, less diversification, and greater vulnerability to shocks.

Market Cap
£2.6B
Neutral
Size Category
Mid Cap
Neutral
🤖AI Analysis

QQ has a market cap of £2.6B (Mid Cap), resulting in a size risk score of 35/100. As a large-cap company, it has minimal size-related risk. Large companies benefit from scale, diversified operations, established brands, and easier access to capital. While not immune to failure, they have resources to navigate challenges and lower statistical failure rates. Size provides stability and reduces existential risk, though it may limit explosive growth potential.

ℹ️

Educational Tool Only

The risk rating and analysis shown above are based on historical financial data and quantitative metrics, provided for informational and educational purposes only. This is not financial advice and should not be interpreted as a recommendation to buy, sell, or hold any security. Past performance does not guarantee future results. Always conduct your own research or consult a qualified financial adviser before making investment decisions.

Analyst Forecasts

Forward-looking estimates from the analyst community for QQ.

Street ViewBalanced·Medium agreement
Balanced setup with +5.7% revenue growth and +13.7% EPS growth.
Confidence is medium agreement, coverage sits at 11 analysts, forecast ranges show tight ranges, 30-day EPS revisions are improving.
Consensus
+5.7% revenue growth
Consensus target of 544.91p
Confidence
Medium agreement
Based on 11 analysts with tight ranges
Watch Item
Execution needs to hold
Strong growth expectations leave less room for disappointment if execution slows.
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Openbook AI
That view is based on 11 analysts. Medium agreement means the Street is directionally aligned but still leaving room for debate.

Yearly Revenue and 2-Year Forecast

Reported revenue for the last 5 years, followed by low, consensus, and high analyst revenue estimates for the next two years. Consensus revenue implies +5.7% YoY growth tight ranges on revenue estimates

Openbook AI
Revenue is projected to move from 1.9B last year to 1.9B in 2026E and 2.1B in 2027E. That implies +0.8% into 2026E and +5.7% into 2027E on the top line. The 2027E range of 2.0B to 2.2B suggests tight ranges on revenue expectations. For you, this matters because top-line misses usually flow straight through to EPS cuts and weaker price-path outcomes.

2-Year EPS Estimates

Low, consensus, and high analyst EPS estimates for the next two fiscal years. Consensus EPS implies +13.7% YoY growth tight ranges on EPS estimates

Openbook AI
Analysts are currently looking for 30.56p in 2026E and 34.73p in 2027E. The outer-year range runs from 33.30p to 38.11p, which counts as tight ranges. For you, that means the market is still underwriting +13.7% EPS growth over the next leg of the story.