In this article we will dive into QUALCOMM INC (NASDAQ:QCOM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed QUALCOMM INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Why QCOM may be interesting for quality investors.
QCOM has achieved substantial revenue growth over the past 5 years, with a 14.76% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a robust ROIC excluding cash and goodwill at 44.92%, QCOM showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
QCOM demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.14, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
With a robust Profit Quality (5-year) ratio of 95.9%, QCOM 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.
The 5-year EBIT growth of QCOM has been remarkable, with 24.84% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
QCOM has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
How does the complete fundamental picture look for QCOM?
Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 108 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 is valued quite cheap, while showing a decent growth score. This is a good combination! QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate for value and dividend and quality investing.
This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.