Qnity Electronics Inc
QAbove valueExpectations · demandingHeld by 6 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +9.7%
- Net margin
- 15.3%
- ROE
- 10.3%
- FCF margin
- 20.8%
Valuation · value band
Above fair value
Zero-growth floor
$26
Central IV
$41
Optimistic top
$49
Qnity Electronics Inc (Q): A conservative value band $26–$49 / sh (zero-growth floor to growth-capped optimistic top); central read about $41. Today’s price sits above that band (price $126 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 6% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 11.5% · Zero-growth downside $26
Price as of 2026-08-26 · yahoo · DGS10 4.6% @ 2026-08-25.
Method & numbers
Operating income is not reported separately (e.g. banks, insurers, and some diversified issuers), so earnings power is shown via the owner-earnings lens only; the unlevered NOPAT lens does not apply.
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $27.16 – $49.06 · Greenwald zero-growth $30.70 · zero-growth base $30.70 · reproduction $17.50
Moat Franchise (moat) · terminal value 45% of present value · owner-earnings yield 2% vs 10Y 4.6%.
Graham earnings-power value (normalized NOPAT)
Operating income is not reported separately (e.g. banks, insurers, and some diversified issuers), so earnings power is shown via the owner-earnings lens only; the unlevered NOPAT lens does not apply.
Normalized NOPAT from operating margin — not applicable when operating income is not reported separately. Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge (+ cash − total debt) — not applied (lens not assessable).
Years: TTM 2026-06-30, 2024, 2023
Buffett owner-earnings value$25.54 – $30.70 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.9–11.9% band (9–11% base + 0.9pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Only one maintenance-capex method available; estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.9pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 4.8 years of owner earnings, adding 0.9pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $-1.27B + capitalized R&D $683.60M（FY 2026, 2024, 2023） = $17.50 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — Operating income is not available across the window, so ROIIC / growth value cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 3 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 4.8 years of owner earnings → +0.9pp cost-of-equity premium → effective 9.9%–11.9%.
Owner-earnings DCF: growth g₁ 6% · OE FY TTM 2026-06-30, 2024, 2023 · Discount band: 10.04%–12.90% (DGS10 +4.5% to a 12% strict end, each +0.90pp for leverage premium, as of 2026-08-25). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 27.6% a year in owner-earnings for the next few years. Revenue actually grew 8.5% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
6 holders · $773.5M combined · this quarter +1 opened / -0 exited
- Value$743.6MWeight (prev→now)6.0% → 7.2% ▲
- Value$20.5MWeight (prev→now)0.5% → 0.5% ▼
- Value$5.7MWeight (prev→now)0.0% → 0.0% ▼
- Value$1.8MWeight (prev→now)0.0% → 0.0% ▲
- Value$1.0MWeight (prev→now)0.0% → 0.0% ▲
- Value$799,566Weight (prev→now)New · 0.0%
SEC 13F · notes
Written summary
Written summary
Qnity Electronics Inc (Q) is held by 6 of the superinvestors tracked on Compounder, with a combined $773.5M in reported 13F value. The largest position belongs to Henry Ellenbogen, where it makes up 7.2% of the portfolio.
Other notable holders by value include Stanley Druckenmiller (0.5% of its book), Jeremy Grantham (0.0% of its book) and Ray Dalio (0.0% of its book).
Over the latest quarter, 1 of the tracked filers opened a new position in Q, 1 added to existing ones, 3 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Qnity Electronics Inc (Q) also commonly hold →
- Amazon.Com IncAMZN5 holders
- Taiwan Semiconductor-Sp AdrTSM5 holders
- Entegris IncENTG5 holders
- Microsoft CorpMSFT4 holders
- Alphabet Inc-Cl AGOOGL4 holders
- Meta Platforms Inc-Class AMETA4 holders
Q's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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