QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
169.18 USD
+0.33 (+0.2%)
168.85 USD
-0.33 (-0.2%)
QCOM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth Finally QCOM also has an excellent dividend rating. With these ratings, QCOM could be worth investigating further 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.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
QCOM has a Return On Assets of 21.10%. This is amongst the best in the industry. QCOM outperforms 93.75% of its industry peers.
QCOM has a Return On Equity of 42.55%. This is amongst the best in the industry. QCOM outperforms 93.75% of its industry peers.
QCOM has a Return On Invested Capital of 20.40%. This is amongst the best in the industry. QCOM outperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.95%.
| 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
With an excellent Profit Margin value of 26.77%, QCOM belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM's Operating Margin of 28.10% is amongst the best of the industry. QCOM outperforms 87.50% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.68%, QCOM is in the better half of the industry, outperforming 77.68% of the companies in the same industry.
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.
Compared to 1 year ago, QCOM has about the same amount of shares outstanding.
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
An Altman-Z score of 6.53 indicates that QCOM is not in any danger for bankruptcy at the moment.
QCOM has a Altman-Z score of 6.53. This is in the better half of the industry: QCOM outperforms 63.39% of its industry peers.
QCOM has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
QCOM has a better Debt to FCF ratio (1.27) than 72.32% 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.
QCOM's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. QCOM is outperformed by 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 | 6.53 |
ROIC/WACC1.77
WACC11.51%
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.
QCOM's Current ratio of 3.19 is in line compared to the rest of the industry. QCOM outperforms 56.25% of 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 of 2.38. This is comparable to the rest of the industry: QCOM outperforms 58.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.85% over the past year.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
The Revenue has grown by 15.82% in the past year. This is quite good.
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
QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y18.78%
EPS Next 2Y9.84%
EPS Next 3Y8.09%
EPS Next 5Y8.66%
Revenue Next Year12.93%
Revenue Next 2Y7.22%
Revenue Next 3Y5.96%
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
A Price/Earnings ratio of 14.44 indicates a correct valuation of QCOM.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 96.43% of the companies in the same industry.
QCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.73, which indicates a correct valuation of QCOM.
96.43% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 84.82% of the companies are valued more expensively.
91.07% 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 | 15.69 | ||
| EV/EBITDA | 13.21 |
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 2Y9.84%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, 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 2.15. QCOM pays more dividend than 90.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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
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 2Y9.84%
EPS Next 3Y8.09%
169.18
+0.33 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-2.11%
Market Cap182.34B
Analysts73.62
Price Target181.69 (7.39%)
Short Float %1.98%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)0.5%
PT rev (3m)1.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.73 | ||
| P/S | 4.22 | ||
| P/FCF | 15.69 | ||
| P/OCF | 14.4 | ||
| P/B | 6.7 | ||
| P/tB | 12.45 | ||
| EV/EBITDA | 13.21 |
EPS(TTM)11.72
EY6.93%
EPS(NY)12.32
Fwd EY7.28%
FCF(TTM)10.78
FCFY6.37%
OCF(TTM)11.75
OCFY6.94%
SpS40.13
BVpS25.24
TBVpS13.58
PEG (NY)0.77
PEG (5Y)0.61
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 | 6.53 |
F-Score7
WACC11.51%
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 Y18.78%
EPS Next 2Y9.84%
EPS Next 3Y8.09%
EPS Next 5Y8.66%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.93%
Revenue Next 2Y7.22%
Revenue Next 3Y5.96%
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%