QUALCOMM INC (1QCOM.MI) Stock Fundamental Analysis
BIT:1QCOM - Euronext Milan - US7475251036 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1QCOM. 1QCOM was compared to 54 industry peers in the Semiconductors & Semiconductor Equipment industry. 1QCOM gets an excellent profitability rating and is at the same time showing great financial health properties. 1QCOM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make 1QCOM suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1QCOM was profitable.
In the past year 1QCOM had a positive cash flow from operations.
Each year in the past 5 years 1QCOM has been profitable.
In the past 5 years 1QCOM always reported a positive cash flow from operatings.
1.2 Ratios
1QCOM's Return On Assets of 19.94% is amongst the best of the industry. 1QCOM outperforms 90.74% of its industry peers.
Looking at the Return On Equity, with a value of 39.82%, 1QCOM belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
1QCOM has a Return On Invested Capital of 19.13%. This is amongst the best in the industry. 1QCOM outperforms 85.19% of its industry peers.
1QCOM had an Average Return On Invested Capital over the past 3 years of 20.79%. This is significantly above the industry average of 15.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROIC | 19.13% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)20.79%
ROIC(5y)19.83%
1.3 Margins
Looking at the Profit Margin, with a value of 26.11%, 1QCOM is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
1QCOM's Profit Margin has improved in the last couple of years.
1QCOM has a Operating Margin of 27.64%. This is in the better half of the industry: 1QCOM outperforms 72.22% of its industry peers.
In the last couple of years the Operating Margin of 1QCOM has grown nicely.
The Gross Margin of 1QCOM (55.68%) is better than 75.93% of its industry peers.
In the last couple of years the Gross Margin of 1QCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.64% | ||
| PM (TTM) | 26.11% | ||
| GM | 55.68% |
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1QCOM is creating value.
Compared to 1 year ago, 1QCOM has about the same amount of shares outstanding.
1QCOM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1QCOM has an improved debt to assets ratio.
2.2 Solvency
1QCOM has an Altman-Z score of 6.02. This indicates that 1QCOM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.02, 1QCOM is doing good in the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of 1QCOM is 1.25, which is an excellent value as it means it would take 1QCOM, only 1.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1QCOM (1.25) is better than 75.93% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that 1QCOM is not too dependend on debt financing.
The Debt to Equity ratio of 1QCOM (0.48) is worse than 75.93% of its industry peers.
Although 1QCOM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.75
WACC10.91%
2.3 Liquidity
1QCOM has a Current Ratio of 2.73. This indicates that 1QCOM is financially healthy and has no problem in meeting its short term obligations.
1QCOM has a Current ratio of 2.73. This is in the better half of the industry: 1QCOM outperforms 62.96% of its industry peers.
1QCOM has a Quick Ratio of 2.08. This indicates that 1QCOM is financially healthy and has no problem in meeting its short term obligations.
1QCOM has a Quick ratio of 2.08. This is in the better half of the industry: 1QCOM outperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.23% over the past year.
Measured over the past years, 1QCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.53% on average per year.
The Revenue has grown by 16.15% in the past year. This is quite good.
Measured over the past years, 1QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
EPS 1Y (TTM)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
3.2 Future
The Earnings Per Share is expected to grow by 10.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y17.6%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
EPS Next 5Y10.12%
Revenue Next Year12.52%
Revenue Next 2Y6.78%
Revenue Next 3Y5.43%
Revenue Next 5Y3.57%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.17, 1QCOM is valued correctly.
1QCOM's Price/Earnings ratio is rather cheap when compared to the industry. 1QCOM is cheaper than 87.04% of the companies in the same industry.
1QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
Based on the Price/Forward Earnings ratio of 12.21, the valuation of 1QCOM can be described as correct.
83.33% of the companies in the same industry are more expensive than 1QCOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, 1QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
1QCOM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1QCOM is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
1QCOM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)0.56
EPS Next 2Y9.16%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, 1QCOM has a reasonable but not impressive dividend return.
1QCOM's Dividend Yield is rather good when compared to the industry average which is at 1.53. 1QCOM pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of 1QCOM has a limited annual growth rate of 5.69%.
Dividend Growth(5Y)5.69%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1QCOM pays out 34.21% of its income as dividend. This is a sustainable payout ratio.
1QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.21%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
BIT:1QCOM (5/28/2025, 7:00:00 PM)
131.02
+1.4 (+1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.72%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap142.66B
Analysts73.62
Price Target163.01 (24.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend2.92
Dividend Growth(5Y)5.69%
DP34.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-0.96%
Max EPS beat(2)12.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.81%
EPS beat(12)8
Avg EPS beat(12)2.93%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)1.41%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.44%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.54%
PT rev (1m)-5.51%
PT rev (3m)-17.74%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.21 | ||
| P/S | 3.83 | ||
| P/FCF | 13.82 | ||
| P/OCF | 12.6 | ||
| P/B | 5.83 | ||
| P/tB | 10.37 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)9.95
EY7.59%
EPS(NY)10.73
Fwd EY8.19%
FCF(TTM)9.48
FCFY7.24%
OCF(TTM)10.4
OCFY7.94%
SpS34.25
BVpS22.46
TBVpS12.63
PEG (NY)0.75
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROCE | 25.5% | ||
| ROIC | 19.13% | ||
| ROICexc | 27.41% | ||
| ROICexgc | 44.16% | ||
| OM | 27.64% | ||
| PM (TTM) | 26.11% | ||
| GM | 55.68% | ||
| FCFM | 27.68% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)20.79%
ROIC(5y)19.83%
ROICexc(3y)27.2%
ROICexc(5y)28.87%
ROICexgc(3y)44.87%
ROICexgc(5y)51.92%
ROCE(3y)27.9%
ROCE(5y)26.71%
ROICexcg growth 3Y-22.23%
ROICexcg growth 5Y-9.77%
ROICexc growth 3Y-16.58%
ROICexc growth 5Y3.47%
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 67.06% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.97% | ||
| Profit Quality | 106.02% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 6.02 |
F-Score8
WACC10.91%
ROIC/WACC1.75
Cap/Depr(3y)89.85%
Cap/Depr(5y)97.98%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.79%
Profit Quality(3y)99.69%
Profit Quality(5y)95.9%
High Growth Momentum
Growth
EPS 1Y (TTM)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
EPS Next Y17.6%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
EPS Next 5Y10.12%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
Revenue Next Year12.52%
Revenue Next 2Y6.78%
Revenue Next 3Y5.43%
Revenue Next 5Y3.57%
EBIT growth 1Y29.19%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year27.47%
EBIT Next 3Y7.62%
EBIT Next 5Y6.24%
FCF growth 1Y70.79%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y44.38%
OCF growth 3Y5.02%
OCF growth 5Y10.86%