QinetiQ Group plc (QQ.L) stock analysis

In our weekly check, QinetiQ Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 6, red flags: 2.

About QinetiQ Group plc

QinetiQ Group plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as QQ.L.

What our checks show for QQ.L

Red flags

• The gross margin fell by 3.1 points, to 28.4%: costs are rising faster than prices.
• Recovering from its deepest fall took about 3.1 years.

Warning signs

• The net margin fell by 1.2 points over 5 years, to 5.6%: the company keeps less of each sale as profit.
• Analysts expect only about 4.7% a year of growth in revenue.
• Earnings per share fell 9.5% a year over the last 3 years.
• Net profit fell 11.4% a year over the last 3 years.
• The net margin is only 5.6%: little room if costs rise.
• The stock has fallen as much as 58% from a peak. Would you have held through that?

Strengths

• Operating profit covers interest 12 times over.
• Operating cash flow is 2.16x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 27% a year over the next years.
• Analysts expect the net margin to improve by 4.5 points from today's 5.6%.
• The dividend takes 34% of profit: there is a cushion.
• Beta 0.33: the stock usually moves less than the market.

Next earnings report: 2026-11-12

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Questions

What grade does QinetiQ Group plc (QQ.L) have?

In our weekly check, QinetiQ Group plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 6, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of QQ.L stock?

This week's biggest flags for QinetiQ Group plc: Gross margin falling, Slow recovery after falls, Margins falling. In total 8 of 25 checks show a warning or a red flag.

What does QinetiQ Group plc do?

QinetiQ Group plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as QQ.L.

When does QinetiQ Group plc report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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