QUALCOMM INC (QCOM)
US7475251036 - Common Stock
We assign a fundamental rating of 6 out of 10 to QCOM. QCOM was compared to 107 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. QCOM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
QCOM had positive earnings in the past year.
QCOM had a positive operating cash flow in the past year.
In the past 5 years QCOM has always been profitable.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.77%, QCOM belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
QCOM's Return On Equity of 34.27% is amongst the best of the industry. QCOM outperforms 94.34% of its industry peers.
The Return On Invested Capital of QCOM (16.23%) is better than 87.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.73%.
The 3 year average ROIC (24.51%) for QCOM is well above the current ROIC(16.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.77% | ||
| ROE | 34.27% | ||
| ROIC | 16.23% |
ROA(3y)20.83%
ROA(5y)18.08%
ROE(3y)65.4%
ROE(5y)74.22%
ROIC(3y)24.51%
ROIC(5y)19.43%
1.3 Margins
QCOM's Profit Margin of 23.03% is fine compared to the rest of the industry. QCOM outperforms 79.25% of its industry peers.
In the last couple of years the Profit Margin of QCOM has declined.
QCOM has a better Operating Margin (24.85%) than 80.19% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
The Gross Margin of QCOM (55.80%) is better than 71.70% of its industry peers.
QCOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.85% | ||
| PM (TTM) | 23.03% | ||
| GM | 55.8% |
OM growth 3Y5.83%
OM growth 5Y7.67%
PM growth 3Y-5.49%
PM growth 5YN/A
GM growth 3Y-1%
GM growth 5Y0.36%
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 has been reduced compared to 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
An Altman-Z score of 6.41 indicates that QCOM is not in any danger for bankruptcy at the moment.
The Altman-Z score of QCOM (6.41) is better than 67.92% of its industry peers.
The Debt to FCF ratio of QCOM is 1.26, which is an excellent value as it means it would take QCOM, only 1.26 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.26, QCOM is doing good in the industry, outperforming 73.58% of the companies in the same industry.
QCOM has a Debt/Equity ratio of 0.59. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
QCOM has a worse Debt to Equity ratio (0.59) than 76.42% of its industry peers.
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 | 0.59 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 6.41 |
ROIC/WACC1.36
WACC11.96%
2.3 Liquidity
A Current Ratio of 2.65 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Current ratio (2.65) which is comparable to the rest of the industry.
A Quick Ratio of 1.98 indicates that QCOM should not have too much problems paying its short term obligations.
The Quick ratio of QCOM (1.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
QCOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.42%.
The Earnings Per Share has been growing by 19.65% on average over the past years. This is quite good.
The Revenue for QCOM has decreased by -11.35% in the past year. This is quite bad
The Revenue has been growing by 9.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.42%
EPS 3Y26.24%
EPS 5Y19.65%
EPS growth Q2Q13.49%
Revenue 1Y (TTM)-11.35%
Revenue growth 3Y18.13%
Revenue growth 5Y9.64%
Revenue growth Q2Q1.23%
3.2 Future
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.91% on average over the next years.
EPS Next Y18.62%
EPS Next 2Y14.5%
EPS Next 3Y10.79%
EPS Next 5Y10.3%
Revenue Next Year6.85%
Revenue Next 2Y7.72%
Revenue Next 3Y6.75%
Revenue Next 5Y7.91%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.78 indicates a rather expensive valuation of QCOM.
76.42% of the companies in the same industry are more expensive than QCOM, based on the Price/Earnings ratio.
QCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.29 indicates a correct valuation of QCOM.
83.02% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (20.88), we can say QCOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
QCOM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. QCOM is cheaper than 72.64% of the companies in the same industry.
88.68% 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 | 16.36 | ||
| EV/EBITDA | 18.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)1.01
EPS Next 2Y14.5%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 1.89%. 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 2.06. QCOM pays more dividend than 90.57% of the companies in the same industry.
QCOM's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 3.77%.
QCOM has paid a dividend for at least 10 years, which is a reliable track record.
QCOM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.77%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
42.64% of the earnings are spent on dividend by QCOM. This is a bit on the high side, but may be sustainable.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.64%
EPS Next 2Y14.5%
EPS Next 3Y10.79%
QUALCOMM INC
NASDAQ:QCOM (5/3/2024, 7:14:24 PM)
After market: 179.7 +0.06 (+0.03%)179.64
-0.46 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap200.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 16.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.77% | ||
| ROE | 34.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.85% | ||
| PM (TTM) | 23.03% | ||
| GM | 55.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.42%
EPS 3Y26.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.35%
Revenue growth 3Y18.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y