QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
168.94 USD
-1.09 (-0.64%)
170.8 USD
+1.86 (+1.1%)
Overall QCOM gets a fundamental rating of 8 out of 10. We evaluated QCOM against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making QCOM a very profitable company, without any liquidiy or solvency issues. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth QCOM also has an excellent dividend rating. This makes QCOM very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year QCOM was profitable.
QCOM had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 21.10%, QCOM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.55%, QCOM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.40%, QCOM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
QCOM had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 11.03%.
| 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 86.61% of its industry peers.
In the last couple of years the Profit Margin of QCOM has grown nicely.
The Operating Margin of QCOM (28.10%) is better than 87.50% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
The Gross Margin of QCOM (55.68%) is better than 77.68% of its industry peers.
QCOM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QCOM 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
The debt/assets ratio for QCOM has been reduced compared to a year ago.
2.2 Solvency
QCOM has an Altman-Z score of 6.52. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM has a better Altman-Z score (6.52) than 61.61% 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.
Looking at the Debt to FCF ratio, with a value of 1.27, QCOM is in the better half of the industry, outperforming 72.32% of the companies in the same industry.
QCOM has a Debt/Equity ratio of 0.54. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
QCOM has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: QCOM underperforms 71.43% 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 | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.52 |
ROIC/WACC1.77
WACC11.55%
2.3 Liquidity
QCOM has a Current Ratio of 3.19. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.19, QCOM is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 2.38 indicates that QCOM has no problem at all paying its short term obligations.
QCOM's Quick ratio of 2.38 is in line compared to the rest of the industry. QCOM outperforms 58.04% of its industry peers.
| 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.
The Earnings Per Share has been growing by 23.53% on average over the past years. This is a very strong growth
Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 15.82% in the last year.
QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
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
The Earnings Per Share is expected to grow by 8.66% on average over the next years. This is quite good.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y18.82%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
EPS Next 5Y8.66%
Revenue Next Year12.94%
Revenue Next 2Y7.18%
Revenue Next 3Y5.8%
Revenue Next 5Y5.1%
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.
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 14.41, QCOM is valued correctly.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 13.69, QCOM is valued correctly.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 95.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 86.61% of the companies are valued more expensively.
92.86% of the companies in the same industry are more expensive than QCOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 13.19 |
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)0.77
PEG (5Y)0.61
EPS Next 2Y9.92%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.09%.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.18. QCOM pays more dividend than 90.18% of the companies in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 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 32.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.79%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
168.94
-1.09 (-0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-6.58%
Ins Owners0.05%
Ins Owner Change-0.72%
Market Cap182.08B
Revenue(TTM)43.26B
Net Income(TTM)11.58B
Analysts73.62
Price Target181.69 (7.55%)
Short Float %2.21%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)-0.04%
PT rev (3m)1.07%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 13.69 | ||
| P/S | 4.21 | ||
| P/FCF | 15.67 | ||
| P/OCF | 14.38 | ||
| P/B | 6.69 | ||
| P/tB | 12.44 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)11.72
EY6.94%
EPS(NY)12.34
Fwd EY7.3%
FCF(TTM)10.78
FCFY6.38%
OCF(TTM)11.75
OCFY6.95%
SpS40.13
BVpS25.24
TBVpS13.58
PEG (NY)0.77
PEG (5Y)0.61
Graham Number81.59
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%
ROICexgc growth 3Y-22.23%
ROICexgc 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 | 6.52 |
F-Score7
WACC11.55%
ROIC/WACC1.77
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 Y18.82%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
EPS Next 5Y8.66%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.94%
Revenue Next 2Y7.18%
Revenue Next 3Y5.8%
Revenue Next 5Y5.1%
EBIT growth 1Y27.63%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.11%
EBIT Next 3Y8.4%
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%
QUALCOMM INC / QCOM FAQ
What is the fundamental rating for QCOM stock?
ChartMill assigns a fundamental rating of 8 / 10 to QCOM.
What is the valuation status of QUALCOMM INC (QCOM) stock?
ChartMill assigns a valuation rating of 8 / 10 to QUALCOMM INC (QCOM). This can be considered as Undervalued.
What is the profitability of QCOM stock?
QUALCOMM INC (QCOM) has a profitability rating of 9 / 10.
What is the expected EPS growth for QUALCOMM INC (QCOM) stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 18.82% in the next year.
Is the dividend of QUALCOMM INC sustainable?
The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 32.79%.