QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 110 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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
QCOM had positive earnings in the past year.
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 (19.94%) than 92.73% of its industry peers.
QCOM's Return On Equity of 39.82% is amongst the best of the industry. QCOM outperforms 93.64% of its industry peers.
With an excellent Return On Invested Capital value of 20.15%, QCOM belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROIC | 20.15% |
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 (26.11%) is better than 86.36% of its industry peers.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM has a better Operating Margin (27.64%) than 87.27% of its industry peers.
In the last couple of years the Operating Margin of QCOM has grown nicely.
QCOM's Gross Margin of 55.68% is fine compared to the rest of the industry. QCOM outperforms 76.36% of its industry peers.
QCOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.64% | ||
| PM (TTM) | 26.11% | ||
| 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 6.34. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM's Altman-Z score of 6.34 is fine compared to the rest of the industry. QCOM outperforms 65.45% of its industry peers.
The Debt to FCF ratio of QCOM is 1.25, which is an excellent value as it means it would take QCOM, only 1.25 years of fcf income to pay off all of its debts.
QCOM has a Debt to FCF ratio of 1.25. This is in the better half of the industry: QCOM outperforms 73.64% of its industry peers.
QCOM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
QCOM's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. QCOM is outperformed by 72.73% 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 | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 6.34 |
ROIC/WACC1.8
WACC11.2%
2.3 Liquidity
A Current Ratio of 2.73 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Current ratio of 2.73. This is comparable to the rest of the industry: QCOM outperforms 46.36% of its industry peers.
A Quick Ratio of 2.08 indicates that QCOM has no problem at all paying its short term obligations.
QCOM's Quick ratio of 2.08 is in line compared to the rest of the industry. QCOM outperforms 48.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.23%, 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
QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.15%.
The Revenue has been growing by 14.76% on average over the past years. This is quite good.
EPS 1Y (TTM)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
3.2 Future
Based on estimates for the next years, QCOM will show a small growth in Earnings Per Share. The EPS will grow by 7.17% on average per year.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 4.90% on average per year.
EPS Next Y17.55%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
EPS Next 5Y7.17%
Revenue Next Year12.54%
Revenue Next 2Y6.89%
Revenue Next 3Y5.4%
Revenue Next 5Y4.9%
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
Based on the Price/Earnings ratio of 14.38, the valuation of QCOM can be described as correct.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 91.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. QCOM is valued slightly cheaper when compared to this.
QCOM is valuated correctly with a Price/Forward Earnings ratio of 13.29.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 13.29 |
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 cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.09 | ||
| EV/EBITDA | 12.76 |
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.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)0.61
EPS Next 2Y9.33%
EPS Next 3Y6.71%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.19, QCOM pays a better dividend. On top of this QCOM pays more dividend than 89.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 34.21% 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.
DP34.21%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
162.21
-0.11 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change-0.81%
Ins Owners0.05%
Ins Owner Change-1.25%
Market Cap176.62B
Analysts73.33
Price Target179.71 (10.79%)
Short Float %2.13%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP34.21%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-0.96%
Max EPS beat(2)12.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.81%
EPS beat(12)8
Avg EPS beat(12)2.93%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)1.41%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.44%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)-2.29%
PT rev (3m)-12.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 13.29 | ||
| P/S | 4.18 | ||
| P/FCF | 15.09 | ||
| P/OCF | 13.76 | ||
| P/B | 6.37 | ||
| P/tB | 11.32 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)11.28
EY6.95%
EPS(NY)12.2
Fwd EY7.52%
FCF(TTM)10.75
FCFY6.63%
OCF(TTM)11.79
OCFY7.27%
SpS38.84
BVpS25.47
TBVpS14.32
PEG (NY)0.82
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROCE | 25.5% | ||
| ROIC | 20.15% | ||
| ROICexc | 28.87% | ||
| ROICexgc | 46.51% | ||
| OM | 27.64% | ||
| PM (TTM) | 26.11% | ||
| GM | 55.68% | ||
| FCFM | 27.68% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 67.06% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.97% | ||
| Profit Quality | 106.02% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 6.34 |
F-Score8
WACC11.2%
ROIC/WACC1.8
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)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
EPS Next Y17.55%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
EPS Next 5Y7.17%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
Revenue Next Year12.54%
Revenue Next 2Y6.89%
Revenue Next 3Y5.4%
Revenue Next 5Y4.9%
EBIT growth 1Y29.19%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year27.47%
EBIT Next 3Y7.62%
EBIT Next 5Y8.2%
FCF growth 1Y70.79%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y44.38%
OCF growth 3Y5.02%
OCF growth 5Y10.86%