QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
Taking everything into account, QCOM scores 8 out of 10 in our fundamental rating. QCOM was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
1. Profitability
1.1 Basic Checks
QCOM had positive earnings in the past year.
QCOM had a positive operating cash flow in the past year.
Each year in the past 5 years QCOM has been profitable.
In the past 5 years QCOM always reported a positive cash flow from operatings.
1.2 Ratios
QCOM has a Return On Assets of 18.99%. This is amongst the best in the industry. QCOM outperforms 92.66% of its industry peers.
QCOM has a Return On Equity of 39.27%. This is amongst the best in the industry. QCOM outperforms 93.58% of its industry peers.
QCOM has a better Return On Invested Capital (18.89%) than 92.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 39.27% | ||
| ROIC | 18.89% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
1.3 Margins
With an excellent Profit Margin value of 25.94%, QCOM belongs to the best of the industry, outperforming 86.24% of the companies in the same industry.
QCOM's Profit Margin has improved in the last couple of years.
QCOM has a Operating Margin of 26.80%. This is amongst the best in the industry. QCOM outperforms 86.24% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
The Gross Margin of QCOM (55.99%) is better than 77.98% of its industry peers.
In the last couple of years the Gross Margin of QCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.8% | ||
| PM (TTM) | 25.94% | ||
| GM | 55.99% |
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
QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
QCOM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, QCOM has less shares outstanding
Compared to 1 year ago, QCOM has an improved debt to assets ratio.
2.2 Solvency
QCOM has an Altman-Z score of 5.79. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.79, QCOM is in the better half of the industry, outperforming 66.97% of the companies in the same industry.
QCOM has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
QCOM's Debt to FCF ratio of 1.14 is fine compared to the rest of the industry. QCOM outperforms 73.39% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that QCOM is not too dependend on debt financing.
QCOM has a worse Debt to Equity ratio (0.49) than 73.39% of its industry peers.
Even though the debt/equity ratio score it not favorable for QCOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 5.79 |
ROIC/WACC2.03
WACC9.3%
2.3 Liquidity
QCOM has a Current Ratio of 2.62. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM's Current ratio of 2.62 is in line compared to the rest of the industry. QCOM outperforms 42.20% of its industry peers.
QCOM has a Quick Ratio of 1.99. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting its short term obligations.
QCOM's Quick ratio of 1.99 is in line compared to the rest of the industry. QCOM outperforms 44.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.66%, which is quite impressive.
Measured over the past years, QCOM 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 12.13% in the past year. This is quite good.
The Revenue has been growing by 14.76% on average over the past years. This is quite good.
EPS 1Y (TTM)23.66%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%24%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%17.61%
3.2 Future
Based on estimates for the next years, QCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.12% on average per year.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y17.51%
EPS Next 2Y10.17%
EPS Next 3Y5.36%
EPS Next 5Y10.12%
Revenue Next Year12.41%
Revenue Next 2Y8.11%
Revenue Next 3Y5.87%
Revenue Next 5Y3.57%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 13.66 indicates a correct valuation of QCOM.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 82.57% of the companies in the same industry.
QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.98.
Based on the Price/Forward Earnings ratio of 11.98, the valuation of QCOM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 88.99% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. QCOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued a bit cheaper than 75.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 92.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.78
PEG (5Y)0.58
EPS Next 2Y10.17%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, QCOM has a reasonable but not impressive dividend return.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.75. QCOM pays more dividend than 89.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
QCOM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
QCOM pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.38%
EPS Next 2Y10.17%
EPS Next 3Y5.36%
148.46
+1.58 (+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 Change0.54%
Ins Owners0.05%
Ins Owner Change9.87%
Market Cap164.20B
Analysts74.35
Price Target198.9 (33.98%)
Short Float %1.56%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP35.38%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.91%
Min EPS beat(2)3.04%
Max EPS beat(2)12.79%
EPS beat(4)4
Avg EPS beat(4)5.1%
Min EPS beat(4)1.54%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.7%
EPS beat(12)9
Avg EPS beat(12)3.68%
EPS beat(16)13
Avg EPS beat(16)5.24%
Revenue beat(2)2
Avg Revenue beat(2)3.04%
Min Revenue beat(2)1.4%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)1.13%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.47%
Revenue beat(12)4
Avg Revenue beat(12)0.05%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)-3.03%
PT rev (3m)-4.43%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)5.15%
EPS NY rev (1m)0.06%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 11.98 | ||
| P/S | 4.03 | ||
| P/FCF | 12.89 | ||
| P/OCF | 11.86 | ||
| P/B | 6.11 | ||
| P/tB | 11.13 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)10.87
EY7.32%
EPS(NY)12.39
Fwd EY8.35%
FCF(TTM)11.52
FCFY7.76%
OCF(TTM)12.51
OCFY8.43%
SpS36.79
BVpS24.3
TBVpS13.33
PEG (NY)0.78
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 39.27% | ||
| ROCE | 23.91% | ||
| ROIC | 18.89% | ||
| ROICexc | 27.52% | ||
| ROICexgc | 44.92% | ||
| OM | 26.8% | ||
| PM (TTM) | 25.94% | ||
| GM | 55.99% | ||
| FCFM | 31.3% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
ROICexc(3y)28.65%
ROICexc(5y)30.41%
ROICexgc(3y)47.26%
ROICexgc(5y)54.69%
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-Score9
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 64.75% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.73% | ||
| Profit Quality | 120.66% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 5.79 |
F-Score9
WACC9.3%
ROIC/WACC2.03
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)23.66%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%24%
EPS Next Y17.51%
EPS Next 2Y10.17%
EPS Next 3Y5.36%
EPS Next 5Y10.12%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%17.61%
Revenue Next Year12.41%
Revenue Next 2Y8.11%
Revenue Next 3Y5.87%
Revenue Next 5Y3.57%
EBIT growth 1Y21.13%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.58%
EBIT Next 3Y7.95%
EBIT Next 5Y6.24%
FCF growth 1Y58.07%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y36.57%
OCF growth 3Y5.02%
OCF growth 5Y10.86%