QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
Overall QCOM gets a fundamental rating of 8 out of 10. We evaluated QCOM against 110 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate 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.
QCOM had positive earnings in each of the past 5 years.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QCOM (19.94%) is better than 93.64% 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.
QCOM has a better Return On Invested Capital (20.15%) than 92.73% of its industry peers.
QCOM had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 11.17%.
| 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
QCOM has a Profit Margin of 26.11%. This is amongst the best in the industry. QCOM outperforms 86.36% of its industry peers.
QCOM's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 55.68%, QCOM is in the better half of the industry, outperforming 77.27% 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 | 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.
Compared to 1 year ago, QCOM has about the same amount of shares outstanding.
QCOM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for QCOM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.20 indicates that QCOM is not in any danger for bankruptcy at the moment.
The Altman-Z score of QCOM (6.20) is better than 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.
With a decent Debt to FCF ratio value of 1.25, QCOM is doing good in the industry, outperforming 73.64% of the companies in the same industry.
QCOM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, QCOM is doing worse than 72.73% 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 | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 6.2 |
ROIC/WACC1.78
WACC11.3%
2.3 Liquidity
QCOM has a Current Ratio of 2.73. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.73, QCOM perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
QCOM has a Quick Ratio of 2.08. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of QCOM (2.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.23% over the past year.
The Earnings Per Share has been growing by 23.53% on average over the past years. This is a very strong growth
The Revenue has grown by 16.15% in the past year. This is quite good.
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
QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.57% yearly.
EPS Next Y17.6%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
EPS Next 5Y10.12%
Revenue Next Year12.52%
Revenue Next 2Y6.78%
Revenue Next 3Y5.43%
Revenue Next 5Y3.57%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.64, 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 88.18% of the companies in the same industry.
QCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
QCOM is valuated correctly with a Price/Forward Earnings ratio of 12.64.
89.09% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. QCOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QCOM indicates a somewhat cheap valuation: QCOM is cheaper than 76.36% of the companies listed in the same industry.
QCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QCOM is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 12.27 |
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)0.77
PEG (5Y)0.58
EPS Next 2Y9.16%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.41, 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 2.36, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
34.21% of the earnings are spent on dividend by QCOM. This is a low number and sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.21%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
153.82
+0.12 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.72%
Inst Owner Change-0.88%
Ins Owners0.05%
Ins Owner Change11%
Market Cap170.12B
Analysts73.62
Price Target183.93 (19.57%)
Short Float %1.58%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)-10.33%
PT rev (3m)-11.13%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.64 | ||
| P/S | 4.02 | ||
| P/FCF | 14.53 | ||
| P/OCF | 13.25 | ||
| P/B | 6.14 | ||
| P/tB | 10.91 | ||
| EV/EBITDA | 12.27 |
EPS(TTM)11.28
EY7.33%
EPS(NY)12.17
Fwd EY7.91%
FCF(TTM)10.58
FCFY6.88%
OCF(TTM)11.61
OCFY7.55%
SpS38.23
BVpS25.07
TBVpS14.1
PEG (NY)0.77
PEG (5Y)0.58
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 | 6.2 |
F-Score8
WACC11.3%
ROIC/WACC1.78
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 Y17.6%
EPS Next 2Y9.16%
EPS Next 3Y6.68%
EPS Next 5Y10.12%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
Revenue Next Year12.52%
Revenue Next 2Y6.78%
Revenue Next 3Y5.43%
Revenue Next 5Y3.57%
EBIT growth 1Y29.19%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.58%
EBIT Next 3Y7.95%
EBIT Next 5Y6.24%
FCF growth 1Y70.79%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y44.38%
OCF growth 3Y5.02%
OCF growth 5Y10.86%