QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
160.66 USD
-1.17 (-0.72%)
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 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! 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
The Return On Assets of QCOM (21.10%) is better than 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's Return On Invested Capital of 20.40% is amongst the best of the industry. QCOM outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QCOM is significantly above the industry average of 10.87%.
| 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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QCOM 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 6.36 indicates that QCOM is not in any danger for bankruptcy at the moment.
QCOM has a better Altman-Z score (6.36) than 66.07% 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's Debt to FCF ratio of 1.27 is fine compared to the rest of the industry. QCOM outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.54, QCOM is doing worse than 72.32% of the companies in the same industry.
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 | 6.36 |
ROIC/WACC1.82
WACC11.2%
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.
With a Current ratio value of 3.19, QCOM perfoms like the industry average, outperforming 55.36% of the companies in the same industry.
QCOM has a Quick Ratio of 2.38. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.38, QCOM perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
| 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.
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.
QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.82%.
The Revenue has been growing by 14.76% on average over the past years. This is quite good.
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.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
EPS Next Y18.8%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
EPS Next 5Y8.66%
Revenue Next Year12.91%
Revenue Next 2Y7.2%
Revenue Next 3Y5.96%
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.
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
QCOM is valuated correctly with a Price/Earnings ratio of 13.71.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.64% of the companies in the same industry.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 13.04, QCOM is valued correctly.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (22.73), we can say QCOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 90.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 12.63 |
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.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)0.58
EPS Next 2Y9.86%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.20%. 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 2.31. QCOM pays more dividend than 90.18% of the companies 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 | 2.2% |
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.
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%
NASDAQ:QCOM (9/15/2025, 2:58:06 PM)
160.66
-1.17 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner Change5.15%
Ins Owners0.05%
Ins Owner Change0.91%
Market Cap173.16B
Analysts74.17
Price Target181.75 (13.13%)
Short Float %1.86%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)1.19%
PT rev (3m)0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)1.07%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 13.04 | ||
| P/S | 4 | ||
| P/FCF | 14.9 | ||
| P/OCF | 13.67 | ||
| P/B | 6.36 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)11.72
EY7.29%
EPS(NY)12.32
Fwd EY7.67%
FCF(TTM)10.78
FCFY6.71%
OCF(TTM)11.75
OCFY7.31%
SpS40.13
BVpS25.24
TBVpS13.58
PEG (NY)0.73
PEG (5Y)0.58
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 | 6.36 |
F-Score7
WACC11.2%
ROIC/WACC1.82
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 Year12.91%
Revenue Next 2Y7.2%
Revenue Next 3Y5.96%
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%