# Qinetiq Group (QQ.LSE)

Canonical: https://gigainvestors.com/s/QQ.LSE

Analysis as of: 2026-10-16T07:39:01.325Z. Financial observations: FY2003–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 477.60 per share; close as of 2026-10-15.

Estimated value: low GBX 320.14 per share, central GBX 358.31 per share, high GBX 409.13 per share. Buy at or below the central value GBX 358.31 per share. Valuation as of 2026-10-16T07:39:01.325Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.14×

- FY2019: 0.13×

- FY2020: 0.11×

- FY2021: 0.10×

- FY2022: 0.09×

- FY2023: 0.10×

- FY2024: 0.10×

- FY2025: -0.05×

- FY2026: 0.11×

### moat: pass

- ROIC, median of available years: 20.5%

- ROIC, second-lowest year: 12.9%

- Typical minus recent gross margin: 1.0 pp

- Typical gross margin (annual median): 29.4%

- Recent gross margin (lower of latest and 3-year median): 28.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.9%

- ROIC including acquisitions, ten-year median: 13.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: 39.9%

- FY2019: 24.2%

- FY2020: 16.4%

- FY2021: 19.5%

- FY2022: 12.9%

- FY2023: 17.4%

- FY2024: 21.5%

- FY2025: -13.9%

- FY2026: 37.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 288M

- Net income, five-year total: GBP 306M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.0 pp

- Working capital / revenue, final three-year average: 8.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.86×

- FY2023: 0.96×

- FY2024: 0.92×

- FY2025: 1.09×

- FY2026: 1.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 39.9% vs 21.5%

- Per-share earnings: 0.22 to 0.21 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: GBP 787M

- Cumulative retained earnings: GBP 60M

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -0.7%

- Per-share value change: GBP -0.01

- Per-share value, starting three-year median: GBP 0.22

- Per-share value, ending three-year median: GBP 0.21

- Buybacks concentrated in cheaper years (correlation): -0.27

- Average buyback yield: 1.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 1.2B

- Cumulative net income, 10 years: GBP 909M

- ROIC, first three-year median: 39.9%

- ROIC, last three-year median: 21.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.22

- FY2018: GBP 0.24

- FY2019: GBP 0.20

- FY2020: GBP 0.18

- FY2021: GBP 0.21

- FY2022: GBP 0.15

- FY2023: GBP 0.26

- FY2024: GBP 0.24

- FY2025: GBP -0.33

- FY2026: GBP 0.21

### accounting: pass

- Sloan accruals: -7.2%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.88×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 1.4%

- FY2018: 1.8%

- FY2019: -0.8%

- FY2020: -3.4%

- FY2021: -4.0%

- FY2022: -5.5%

- FY2023: -2.5%

- FY2024: -4.9%

- FY2025: -22.3%

- FY2026: -7.2%

## Holders

## Price story

Price needs cash profits to grow 4.9% a year for ten years · sales -0.5%

Story as of 2026-10-16T10:00:10.386Z; price observation 2026-10-15.

Price needs cash profits to grow 4.9% a year for ten years

### Sales · FY2025–2026

sales -0.5%; source https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html; observed 2026-06-11.

- FY2017: GBP 783M 

- FY2018: GBP 833M 

- FY2019: GBP 911M 

- FY2020: GBP 1.1B 

- FY2021: GBP 1.3B 

- FY2022: GBP 1.3B 

- FY2023: GBP 1.6B 

- FY2024: GBP 1.9B 

- FY2025: GBP 1.9B 

- FY2026: GBP 1.9B 

### Gross margin · FY2026

gross margin 28.4%; source https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html; observed 2026-06-11.

- FY2017: 17.4% 

- FY2018: 17.1% 

- FY2019: 17.4% 

- FY2020: 38.2% 

- FY2021: 33.8% 

- FY2022: 31.5% 

- FY2023: 30.4% 

- FY2024: 14.1% 

- FY2026: 28.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are GBP 1.9 billion.

- Source: https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html (filed 2026-06-11); FY2026: revenue 1922600000; grossProfit 546000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QQ.LSE: QinetiQ Group plc provides science and technology solution in the defense, security, and infrastructure markets in the United States, Australia, Canada, and Germany. The company operates through four segments: Test and Training; Mission Support and Operations; Research and Development; and Engineering Services. It offers test and evaluation, training and simulation, mission rehearsal, and threat representation; cyber and intelligence capabilities, mission data, and persistent surveillance. The company also provides advanced materials, AI and Analytics, autonomous systems, cyber and electromagnetic spectrum, directed energy systems, human factors integration, immersive technology, navigation and communication systems, quantum technology, secure communication solutions, and sensing and processing systems. It serves ministry of defense, government agencies, department of defense and commercial sectors. QinetiQ Group plc was founded in 2001 and is based in Farnborough, the United Kingdom.

### Why customers stay

Margins ranged from 14.1% to 100% during 2024–26; it earns 20.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: grossProfit / revenue = 14.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: grossProfit / revenue = 100%.

- Source: https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html (filed 2026-06-11); FY2026: grossProfit / revenue = 28.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); 10-year return on capital observations [[2017,1.0320361344323374],[2018,0.39883224510296333],[2019,0.24195080096298824],[2020,0.16418387864470355],[2021,0.19511771987756074],[2022,0.12900930433417085],[2023,0.17398666109414299],[2024,0.21457056543452077],[2025,-0.1388252427184466],[2026,0.37458893220375894]]; median 0.20484414265604076. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 146.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2017: growth capex 700000; upkeep 30000000; owner earnings 123300000. Growth capex / owner earnings = 0.0056772100567721.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2018: growth capex 14100000; upkeep 31900000; owner earnings 138100000. Growth capex / owner earnings = 0.10209992758870384.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2019: growth capex 24868009.593582526; upkeep 52131990.406417474; owner earnings 105808009.59358253. Growth capex / owner earnings = 0.23502955673301715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2020: growth capex 53120203.54429198; upkeep 56279796.45570802; owner earnings 97640203.54429197. Growth capex / owner earnings = 0.5440402786562747.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2021: growth capex 18300000; upkeep 61200000; owner earnings 116360000. Growth capex / owner earnings = 0.15727053970436577.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2022: growth capex 13946373.698112845; upkeep 70353626.30188715; owner earnings 77526373.69811285. Growth capex / owner earnings = 0.17989199072331083.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2023: growth capex 34400000; upkeep 74600000; owner earnings 148140000. Growth capex / owner earnings = 0.23221277170244364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: growth capex 5600000; upkeep 90700000; owner earnings 128500000. Growth capex / owner earnings = 0.04357976653696498.

- Source: https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html (filed 2026-06-11); FY2026: growth capex 0; upkeep 72500000; owner earnings 136780000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Dividend observations: [[2017,33400000],[2018,34500000],[2019,35700000],[2020,38000000],[2021,37700000],[2022,40200000],[2023,42600000],[2024,45600000],[2025,47900000],[2026,48700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html (filed 2026-06-11); FY2026: cash repurchases 146900000 GBP.

### Are managers owners

Insiders own 15.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); QQ.LSE SharesStats.PercentInsiders = 15.061 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.9% yearly over ten years; actual growth was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Ten-year compound average after fade. Initial solved rate 0.05747947684011223. Price 477.6; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.18284424379232506 → FY2026 0.261980463512737. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 230.20 per share

- 2016-11: GBX 243.00 per share

- 2016-12: GBX 262.80 per share

- 2017-01: GBX 263.70 per share

- 2017-02: GBX 277.10 per share

- 2017-03: GBX 279.00 per share

- 2017-04: GBX 293.80 per share

- 2017-05: GBX 312.20 per share

- 2017-06: GBX 270.20 per share

- 2017-07: GBX 241.20 per share

- 2017-08: GBX 230.00 per share

- 2017-09: GBX 246.90 per share

- 2017-10: GBX 244.10 per share

- 2017-11: GBX 216.10 per share

- 2017-12: GBX 231.10 per share

- 2018-01: GBX 205.90 per share

- 2018-02: GBX 205.10 per share

- 2018-03: GBX 206.30 per share

- 2018-04: GBX 230.50 per share

- 2018-05: GBX 264.30 per share

- 2018-06: GBX 269.70 per share

- 2018-07: GBX 270.60 per share

- 2018-08: GBX 271.00 per share

- 2018-09: GBX 286.20 per share

- 2018-10: GBX 277.70 per share

- 2018-11: GBX 296.90 per share

- 2018-12: GBX 286.40 per share

- 2019-01: GBX 303.00 per share

- 2019-02: GBX 306.80 per share

- 2019-03: GBX 301.20 per share

- 2019-04: GBX 301.40 per share

- 2019-05: GBX 291.40 per share

- 2019-06: GBX 279.40 per share

- 2019-07: GBX 289.20 per share

- 2019-08: GBX 288.60 per share

- 2019-09: GBX 288.80 per share

- 2019-10: GBX 315.20 per share

- 2019-11: GBX 334.20 per share

- 2019-12: GBX 357.80 per share

- 2020-01: GBX 352.40 per share

- 2020-02: GBX 344.00 per share

- 2020-03: GBX 322.00 per share

- 2020-04: GBX 304.00 per share

- 2020-05: GBX 295.00 per share

- 2020-06: GBX 297.40 per share

- 2020-07: GBX 305.80 per share

- 2020-08: GBX 291.80 per share

- 2020-09: GBX 277.80 per share

- 2020-10: GBX 236.40 per share

- 2020-11: GBX 293.40 per share

- 2020-12: GBX 319.80 per share

- 2021-01: GBX 301.20 per share

- 2021-02: GBX 298.80 per share

- 2021-03: GBX 316.00 per share

- 2021-04: GBX 332.00 per share

- 2021-05: GBX 355.60 per share

- 2021-06: GBX 343.60 per share

- 2021-07: GBX 329.20 per share

- 2021-08: GBX 345.80 per share

- 2021-09: GBX 324.20 per share

- 2021-10: GBX 269.40 per share

- 2021-11: GBX 261.00 per share

- 2021-12: GBX 266.00 per share

- 2022-01: GBX 267.80 per share

- 2022-02: GBX 292.40 per share

- 2022-03: GBX 304.40 per share

- 2022-04: GBX 342.00 per share

- 2022-05: GBX 365.20 per share

- 2022-06: GBX 367.60 per share

- 2022-07: GBX 380.80 per share

- 2022-08: GBX 348.40 per share

- 2022-09: GBX 330.00 per share

- 2022-10: GBX 359.40 per share

- 2022-11: GBX 347.80 per share

- 2022-12: GBX 357.00 per share

- 2023-01: GBX 362.80 per share

- 2023-02: GBX 337.80 per share

- 2023-03: GBX 324.80 per share

- 2023-04: GBX 371.40 per share

- 2023-05: GBX 359.40 per share

- 2023-06: GBX 353.80 per share

- 2023-07: GBX 322.40 per share

- 2023-08: GBX 333.40 per share

- 2023-09: GBX 318.80 per share

- 2023-10: GBX 331.00 per share

- 2023-11: GBX 296.00 per share

- 2023-12: GBX 309.00 per share

- 2024-01: GBX 358.20 per share

- 2024-02: GBX 370.60 per share

- 2024-03: GBX 365.20 per share

- 2024-04: GBX 343.60 per share

- 2024-05: GBX 447.20 per share

- 2024-06: GBX 443.20 per share

- 2024-07: GBX 483.20 per share

- 2024-08: GBX 481.60 per share

- 2024-09: GBX 449.40 per share

- 2024-10: GBX 459.00 per share

- 2024-11: GBX 415.20 per share

- 2024-12: GBX 415.40 per share

- 2025-01: GBX 372.80 per share

- 2025-02: GBX 404.20 per share

- 2025-03: GBX 386.20 per share

- 2025-04: GBX 392.60 per share

- 2025-05: GBX 497.20 per share

- 2025-06: GBX 515.50 per share

- 2025-07: GBX 497.00 per share

- 2025-08: GBX 475.80 per share

- 2025-09: GBX 549.50 per share

- 2025-10: GBX 479.40 per share

- 2025-11: GBX 415.40 per share

- 2025-12: GBX 441.60 per share

- 2026-01: GBX 501.50 per share

- 2026-02: GBX 505.00 per share

- 2026-03: GBX 454.00 per share

- 2026-04: GBX 444.40 per share

- 2026-05: GBX 503.50 per share

- 2026-06: GBX 422.40 per share

- 2026-07: GBX 506.00 per share

- 2026-08: GBX 507.50 per share

- 2026-09: GBX 489.00 per share

- 2026-10: GBX 477.60 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 243.22 per share, central GBX 271.70 per share, high GBX 309.62 per share

- FY2018: low GBX 266.36 per share, central GBX 296.96 per share, high GBX 337.70 per share

- FY2019: low GBX 271.77 per share, central GBX 305.09 per share, high GBX 349.46 per share

- FY2020: low GBX 298.34 per share, central GBX 337.31 per share, high GBX 389.19 per share

- FY2021: low GBX 307.72 per share, central GBX 346.23 per share, high GBX 397.49 per share

- FY2022: low GBX 263.10 per share, central GBX 294.14 per share, high GBX 335.45 per share

- FY2023: low GBX 292.06 per share, central GBX 333.04 per share, high GBX 383.59 per share

- FY2024: low GBX 370.40 per share, central GBX 426.22 per share, high GBX 490.19 per share

- FY2025: low GBX 296.14 per share, central GBX 330.82 per share, high GBX 376.97 per share

- FY2026: low GBX 312.77 per share, central GBX 350.07 per share, high GBX 399.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:49.355Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800S8OBDOZMCMUW34/2026-03-31/ESEF/GB/0/213800S8OBDOZMCMUW34-2026-03-31/reports/213800S8OBDOZMCMUW34-2026-03-31-T01.html); period 2026-03-31, filed 2026-06-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.