Q (Qnity Electronics) Financial Strength: 6 (As of Jun. 2026) — Near Median

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Q Qnity Electronics Inc Q
17 GF Score
Price $126.59
! 2 Warning Signs
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What is Qnity Electronics Financial Strength?

Qnity Electronics Q +0.27% 17 Financial Strength is 6 as of Jun. 2026, which is at its 10-year median of 6.00. GuruFocus rates Q with a GF Score™ of 17/100. The stock has 2 warning signs investors should review.

Qnity Electronics has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Qnity Electronics's Interest Coverage for the quarter that ended in Jun. 2026 was 5.21. Qnity Electronics's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.70. As of today, Qnity Electronics's Altman Z-Score is 3.09.


Qnity Electronics  (NYSE:Q) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Qnity Electronics has the Financial Strength Rank of 6.


Qnity Electronics Financial Strength Related Terms


Q vs ENTG, AMKR, NVMI: Financial Strength Comparison

For the Semiconductor Equipment & Materials subindustry, Qnity Electronics's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Qnity Electronics Financial Strength vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Qnity Electronics's Financial Strength distribution charts can be found below:

* The bar in red indicates where Qnity Electronics's Financial Strength falls into.


Q
17GF Score
Qnity Electronics Inc Q
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Qnity Electronics Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Qnity Electronics's Interest Expense for the months ended in Jun. 2026 was $-61 Mil. Its Operating Income for the months ended in Jun. 2026 was $318 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $3,997 Mil.

Qnity Electronics's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*318/-61
=5.21

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Qnity Electronics's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(23 + 3997) / 5716
=0.70

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Qnity Electronics has a Z-score of 3.09, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.09 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Qnity Electronics (Q) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Qnity Electronics and its competitors. This is near median its historical median of 6.00. Over the past decade, Qnity Electronics' Financial Strength has ranged from 4.00 to 6.00.
Is Qnity Electronics' Financial Strength too high?
Qnity Electronics' current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 6.00. Overall, Qnity Electronics has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Qnity Electronics' Financial Strength compare to ENTG and AMKR?
Qnity Electronics' Financial Strength of 6 can be compared against companies in the Semiconductors industry. Historically, Qnity Electronics' own Financial Strength has ranged from 4.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Semiconductors company?
A good Financial Strength depends on the Semiconductors industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Qnity Electronics and its competitors. Qnity Electronics's current Financial Strength is 6, which is near median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qnity Electronics stock overvalued right now?
Qnity Electronics (Q) has a current Financial Strength of 6. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Qnity Electronics' overall GF Score™ is 17/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Qnity Electronics (Q), the current Financial Strength is 6 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Qnity Electronics Business Description

Other Exchanges Q1:MexicoZ5O:Germany
Address 974 Centre Road, Building 735, Wilmington, DE, USA, 19805
Qnity is a specialty chemicals company created in 2025 after being spun off from DuPont. It sells chemicals and materials to the semiconductor industry, which generates the majority of sales, and also the electronics industry. Qnity specializes in materials science, including supplying key materials required to manufacture semiconductors and interconnected devices.
17GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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