QUALCOMM INC (QCI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:QCI - US7475251036 - Common Stock
133.67 EUR
-1.05 (-0.78%)
Overall QCI gets a fundamental rating of 6 out of 10. We evaluated QCI against 68 industry peers in the Semiconductors & Semiconductor Equipment industry. QCI gets an excellent profitability rating and is at the same time showing great financial health properties. QCI has a decent growth rate and is not valued too expensively. These ratings could make QCI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year QCI was profitable.
- In the past year QCI had a positive cash flow from operations.
- In the past 5 years QCI has always been profitable.
- Each year in the past 5 years QCI had a positive operating cash flow.
1.2 Ratios
- QCI has a better Return On Assets (11.05%) than 60.29% of its industry peers.
- With a decent Return On Equity value of 26.13%, QCI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- QCI's Return On Invested Capital of 21.40% is amongst the best of the industry. QCI outperforms 83.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for QCI is above the industry average of 14.62%.
- The 3 year average ROIC (17.48%) for QCI is below the current ROIC(21.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROIC | 21.4% |
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
1.3 Margins
- QCI has a Profit Margin of 12.51%. This is comparable to the rest of the industry: QCI outperforms 50.00% of its industry peers.
- In the last couple of years the Profit Margin of QCI has declined.
- Looking at the Operating Margin, with a value of 27.99%, QCI is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of QCI has grown nicely.
- Looking at the Gross Margin, with a value of 55.43%, QCI is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
- QCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% |
OM growth 3Y-5.8%
OM growth 5Y6.56%
PM growth 3Y-24.67%
PM growth 5Y-12.15%
GM growth 3Y-1.41%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QCI is creating value.
- The number of shares outstanding for QCI has been reduced compared to 1 year ago.
- The number of shares outstanding for QCI has been reduced compared to 5 years ago.
- The debt/assets ratio for QCI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.17 indicates that QCI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.17, QCI is in line with its industry, outperforming 54.41% of the companies in the same industry.
- QCI has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.16, QCI is doing good in the industry, outperforming 69.12% of the companies in the same industry.
- A Debt/Equity ratio of 0.70 indicates that QCI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.70, QCI is doing worse than 80.88% of the companies in the same industry.
- Although QCI 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.17 |
ROIC/WACC2.02
WACC10.6%
2.3 Liquidity
- QCI has a Current Ratio of 2.82. This indicates that QCI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of QCI (2.82) is better than 73.53% of its industry peers.
- QCI has a Quick Ratio of 2.10. This indicates that QCI is financially healthy and has no problem in meeting its short term obligations.
- QCI has a better Quick ratio (2.10) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.83% over the past year.
- QCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.54% yearly.
- Looking at the last year, QCI shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
- The Revenue has been growing by 15.30% on average over the past years. This is quite good.
EPS 1Y (TTM)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
3.2 Future
- The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
- Based on estimates for the next years, QCI will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y2.57%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
EPS Next 5Y8.23%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y3.64%
Revenue Next 5Y4.71%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.00, which indicates a correct valuation of QCI.
- Based on the Price/Earnings ratio, QCI is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. QCI is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.68, QCI is valued correctly.
- Based on the Price/Forward Earnings ratio, QCI is valued cheaper than 91.18% of the companies in the same industry.
- QCI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QCI is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, QCI is valued cheaper than 95.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QCI does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of QCI may justify a higher PE ratio.
PEG (NY)5.06
PEG (5Y)0.55
EPS Next 2Y2.44%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- QCI has a Yearly Dividend Yield of 2.21%.
- Compared to an average industry Dividend Yield of 0.72, QCI pays a better dividend. On top of this QCI pays more dividend than 92.65% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, QCI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
- The dividend of QCI is nicely growing with an annual growth rate of 6.56%!
Dividend Growth(5Y)6.56%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- QCI pays out 68.67% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of QCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.67%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
QUALCOMM INC / QCI.DE FAQ
Can you provide the ChartMill fundamental rating for QUALCOMM INC?
ChartMill assigns a fundamental rating of 6 / 10 to QCI.DE.
Can you provide the valuation status for QUALCOMM INC?
ChartMill assigns a valuation rating of 6 / 10 to QUALCOMM INC (QCI.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for QUALCOMM INC?
QUALCOMM INC (QCI.DE) has a profitability rating of 7 / 10.
How financially healthy is QUALCOMM INC?
The financial health rating of QUALCOMM INC (QCI.DE) is 7 / 10.
What is the earnings growth outlook for QUALCOMM INC?
The Earnings per Share (EPS) of QUALCOMM INC (QCI.DE) is expected to grow by 2.57% in the next year.