IonQ Inc. Common Stock (IONQ)

FairStock Score: 41/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 11.3% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Superior net profit margin of 402.8% indicating pricing power and operational efficiency
• Revenue growth of 428.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($10) with negative 353% margin of safety—limited downside protection

AI Analysis

IonQ Inc. Common Stock is a mid-cap technology company valued at $15.9 billion. The business generates $187 million in annual revenue with a 402.8% net margin. From a quality standpoint, IonQ shows healthy Altman Z-Score of 3.5 and adequate 11% ROE. On valuation, the stock is commanding a steep 126.3x multiple, with trades far above its Graham Number ($10) with no margin of safety. Growth dynamics show revenue growing at 428.5% and profit growth of 473.1%. Our composite FairStock Score of 41/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

IonQ's 429% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 126x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer