Why QUALCOMM INC (NASDAQ:QCOM) Deserves Consideration as a Quality Investment.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if QUALCOMM INC (NASDAQ:QCOM) is suited for quality investing. Investors should of course do their own research, but we spotted QUALCOMM INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NASDAQ:QCOM may be interesting for quality investors.

• The 5-year revenue growth of QUALCOMM INC has been remarkable, with 9.64% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• QUALCOMM INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 39.53% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of QUALCOMM INC stands at 1.26, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 103.0%, QUALCOMM INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• QUALCOMM INC has consistently achieved strong EBIT growth over the past 5 years, with a 18.04% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• QUALCOMM INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QCOM has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of QCOM for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.