QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - US7475251036 - Common Stock
158.01 USD
+3.88 (+2.52%)
158.1 USD
+0.09 (+0.06%)
We assign a fundamental rating of 8 out of 10 to QCOM. QCOM was compared to 110 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. QCOM also has an excellent dividend rating. These ratings would make QCOM suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year QCOM was profitable.
In the past year QCOM had a positive cash flow from operations.
Each year in the past 5 years QCOM has been profitable.
QCOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QCOM has a better Return On Assets (21.10%) than 93.64% of its industry peers.
QCOM has a Return On Equity of 42.55%. This is amongst the best in the industry. QCOM outperforms 93.64% of its industry peers.
QCOM has a Return On Invested Capital of 20.40%. This is amongst the best in the industry. QCOM outperforms 92.73% of its industry peers.
QCOM had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.1% | ||
| ROE | 42.55% | ||
| ROIC | 20.4% |
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
The Profit Margin of QCOM (26.77%) is better than 87.27% of its industry peers.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM has a better Operating Margin (28.10%) than 87.27% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
QCOM has a better Gross Margin (55.68%) than 76.36% 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 | 28.1% | ||
| PM (TTM) | 26.77% | ||
| 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
QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for QCOM remains at a similar level compared to 1 year ago.
The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
Compared to 1 year ago, QCOM has an improved debt to assets ratio.
2.2 Solvency
QCOM has an Altman-Z score of 6.27. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM's Altman-Z score of 6.27 is fine compared to the rest of the industry. QCOM outperforms 66.36% of its industry peers.
The Debt to FCF ratio of QCOM is 1.27, which is an excellent value as it means it would take QCOM, only 1.27 years of fcf income to pay off all of its debts.
QCOM has a better Debt to FCF ratio (1.27) than 71.82% of its industry peers.
QCOM has a Debt/Equity ratio of 0.54. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, QCOM is not doing good in the industry: 73.64% of the companies in the same industry are doing better.
Although QCOM 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 | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.27 |
ROIC/WACC1.81
WACC11.3%
2.3 Liquidity
A Current Ratio of 3.19 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Current ratio (3.19) which is in line with its industry peers.
A Quick Ratio of 2.38 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Quick ratio (2.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.85%, which is quite impressive.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.82%.
Measured over the past years, QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
EPS 1Y (TTM)22.85%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%18.88%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
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 8.66% on average per year.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y18.8%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
EPS Next 5Y8.66%
Revenue Next Year12.92%
Revenue Next 2Y7.21%
Revenue Next 3Y5.94%
Revenue Next 5Y5.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 13.48 indicates a correct valuation of QCOM.
Compared to the rest of the industry, the Price/Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 94.55% of the companies listed in the same industry.
QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 12.82 indicates a correct valuation of QCOM.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.64% of the companies in the same industry.
QCOM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 82.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
QCOM's 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)0.72
PEG (5Y)0.57
EPS Next 2Y9.86%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.42. QCOM pays more dividend than 90.00% of the companies in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
QCOM has paid a dividend for at least 10 years, which is a reliable track record.
QCOM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
32.79% of the earnings are spent on dividend by QCOM. This is a low number and sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.79%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
158.01
+3.88 (+2.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner Change5.14%
Ins Owners0.05%
Ins Owner Change1.6%
Market Cap170.42B
Analysts73.75
Price Target180.78 (14.41%)
Short Float %2.17%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP32.79%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.45%
Min EPS beat(2)-0.96%
Max EPS beat(2)0.05%
EPS beat(4)3
Avg EPS beat(4)3.73%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.64%
EPS beat(12)8
Avg EPS beat(12)2.83%
EPS beat(16)12
Avg EPS beat(16)3.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-0.35%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.54%
Revenue beat(12)3
Avg Revenue beat(12)-0.29%
Revenue beat(16)6
Avg Revenue beat(16)0.15%
PT rev (1m)0.57%
PT rev (3m)-1.71%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)1.07%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)1.87%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 12.82 | ||
| P/S | 3.94 | ||
| P/FCF | 14.66 | ||
| P/OCF | 13.46 | ||
| P/B | 6.26 | ||
| P/tB | 11.64 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)11.72
EY7.42%
EPS(NY)12.32
Fwd EY7.8%
FCF(TTM)10.78
FCFY6.82%
OCF(TTM)11.74
OCFY7.43%
SpS40.11
BVpS25.23
TBVpS13.58
PEG (NY)0.72
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.1% | ||
| ROE | 42.55% | ||
| ROCE | 25.83% | ||
| ROIC | 20.4% | ||
| ROICexc | 25.91% | ||
| ROICexgc | 39.22% | ||
| OM | 28.1% | ||
| PM (TTM) | 26.77% | ||
| GM | 55.68% | ||
| FCFM | 26.87% |
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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 62.34% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.6% | ||
| Profit Quality | 100.38% | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 6.27 |
F-Score7
WACC11.3%
ROIC/WACC1.81
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)22.85%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%18.88%
EPS Next Y18.8%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
EPS Next 5Y8.66%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.92%
Revenue Next 2Y7.21%
Revenue Next 3Y5.94%
Revenue Next 5Y5.11%
EBIT growth 1Y27.63%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.68%
EBIT Next 3Y8.3%
EBIT Next 5Y8.2%
FCF growth 1Y69.32%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y46.31%
OCF growth 3Y5.02%
OCF growth 5Y10.86%