Qinetiq Group Net Income vs. Current Valuation

QQ Stock   423.20  4.00  0.95%   
Considering Qinetiq Group's profitability and operating efficiency indicators, Qinetiq Group PLC may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Qinetiq Group's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2003-01-31
Previous Quarter
38 M
Current Value
38 M
Quarterly Volatility
27.1 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Qinetiq Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Qinetiq Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Qinetiq Group PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Qinetiq Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Qinetiq Group PLC over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Qinetiq Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Qinetiq Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Qinetiq Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Qinetiq Group PLC Current Valuation vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Qinetiq Group's current stock value. Our valuation model uses many indicators to compare Qinetiq Group value to that of its competitors to determine the firm's financial worth.
Qinetiq Group PLC is currently regarded as top stock in net income category among its peers. It also is currently regarded number one company in current valuation category among its peers reporting about  18.01  of Current Valuation per Net Income. At present, Qinetiq Group's Net Income is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Qinetiq Group's earnings, one of the primary drivers of an investment's value.

Qinetiq Current Valuation vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Qinetiq Group

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
139.6 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Qinetiq Group

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
2.51 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Qinetiq Current Valuation vs Competition

Qinetiq Group PLC is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is at this time estimated at about 246.41 Billion. Qinetiq Group claims roughly 2.51 Billion in current valuation contributing just under 2% to equities under Industrials industry.

Qinetiq Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Qinetiq Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Qinetiq Group will eventually generate negative long term returns. The profitability progress is the general direction of Qinetiq Group's change in net profit over the period of time. It can combine multiple indicators of Qinetiq Group, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income30.5 M32 M
Operating Income192.5 M103.7 M
Income Before Tax182.7 M99.3 M
Total Other Income Expense Net-9.8 M-9.3 M
Net Income Applicable To Common Shares103.5 M95.1 M
Net Income139.6 M97 M
Income Tax Expense43.1 M45.3 M
Net Income From Continuing Ops139.6 M127.5 M
Net Interest Income-15.4 M-14.6 M
Interest Income5.3 M7.3 M
Change To Netincome11.9 M6.2 M

Qinetiq Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Qinetiq Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Qinetiq Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Qinetiq Group's important profitability drivers and their relationship over time.

Use Qinetiq Group in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Qinetiq Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Qinetiq Group will appreciate offsetting losses from the drop in the long position's value.

Qinetiq Group Pair Trading

Qinetiq Group PLC Pair Trading Analysis

The ability to find closely correlated positions to Qinetiq Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Qinetiq Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Qinetiq Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Qinetiq Group PLC to buy it.
The correlation of Qinetiq Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Qinetiq Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Qinetiq Group PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Qinetiq Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Qinetiq Group position

In addition to having Qinetiq Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Junk Bonds Funds
Junk Bonds Funds Theme
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Junk Bonds Funds Theme or any other thematic opportunities.
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Other Information on Investing in Qinetiq Stock

To fully project Qinetiq Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Qinetiq Group PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Qinetiq Group's income statement, its balance sheet, and the statement of cash flows.
Potential Qinetiq Group investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Qinetiq Group investors may work on each financial statement separately, they are all related. The changes in Qinetiq Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Qinetiq Group's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.