£374.5m market cap
47p last close
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 and power electronics.
Investment summary
IQE has announced that it expects H120 revenues to be at least £85m. This is 27% higher than H119 and a record first half performance and is expected to take the group to low single digit million adjusted operating profit in H120 compared with £1.9m loss in H119. Despite this encouraging start to the year, we leave our estimates unchanged given the prevailing uncertainty regarding the impact of the coronavirus pandemic on global handset demand.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 156.3 | 26.4 | 14.0 | 1.38 | 34.1 | 21.1 |
| 2019A | 140.0 | 16.2 | (7.0) | (2.46) | N/A | 41.3 |
| 2020E | 143.7 | 19.4 | (6.2) | (0.83) | N/A | 28.5 |
| 2021E | 164.9 | 38.7 | 11.6 | 1.13 | 41.6 | 10.4 |
Industry outlook
During H120 IQE’s long-standing wireless customers have benefited from major design wins and investment in 5G infrastructure. IQE is also taking share in the Asian wireless market. Production for IQE’s major vertical cavity surface emitting laser (VCSEL) customer was consistently strong throughout the period.
Last updated on 15/07/2020
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| TMT |
Share price graph
Balance sheet |
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| Forecast net debt (£m) | N/A |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Phil Smith | Chairman |
| Drew Nelson | CEO |
| Tim Pullen | CFO |
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