# QinetiQ Group plc (QQ.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Aerospace & Defense. Price 474p, market value 2.4 billionp.

## Valuation
- **P/E (trailing): 23.7×** (5-yr avg 1723.3×, 3-yr avg 1895.2×). QinetiQ Group plc trades at 23.7× trailing earnings, well below its own five-year average of 1723.3×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 12.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.08**. A PEG of 0.08 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.6×**. Each dollar of revenue is priced at 0.6×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 4.5×**. The shares trade at 4.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.8×**. Enterprise value is 4.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.3%** (5-yr avg 0.1%). Free cash flow equals 12.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 11.8%**. QinetiQ Group plc keeps 11.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 2.2%**. 2.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 5.6%**. 5.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 19.4%**. 19.4% on shareholders' equity is solid.
- **Return on invested capital: 6.0%**. Return on all capital, debt included, is 6.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -4.5%**. Each dollar of assets produces -4.5% of profit.

## Growth
- **Revenue growth (1 yr): -0.5%** (3-yr 6.7%/yr, 5-yr 8.5%/yr). Revenue fell 0.5% over the last year, against 8.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 160.6%** (3-yr -9.5%/yr, 5-yr -1.0%/yr). Earnings per share rose 160.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 18.0%/yr**. Free cash flow has compounded at 18.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.74**. Debt is 0.74 times equity, moderate leverage.
- **Net debt / EBITDA: 0.3×**. It would take 0.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.1×**. Operating profit covers interest 2.1×, thin but manageable.
- **Current ratio: 1.13** (quick 1.02). Current assets cover the next year's liabilities 1.13 times.
- **Altman Z-score: 3.24**. A Z-score of 3.24 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.27%** (0p per share, trailing). QinetiQ Group plc yields 2.27%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 45%** (32% of free cash flow). 45% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 15**. 15 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 6.0%/yr** (1-yr 7.3%). The dividend has grown 6.0% a year over five years.
- **Shareholder yield: 12.8%**. Dividends plus net buybacks return 12.8% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (12 analysts). 12 analysts cover QinetiQ Group plc; the consensus is buy, with an average price target of 564p (+19% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 2.1%** (YTD 10.5%, 3-mo 2.6%). The shares are up 2.1% over twelve months including dividends.
- **From 52-week high: -17.8%** (18.9% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 0.90** (volatility 32%). Beta of 0.90 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=QQ.L · Page: https://foliofundamentals.com/stocks/qq.l

Not investment advice.