151.59 USD
-0.63 (-0.41%)
At close: Jan 30, 2026
151.5 USD
-0.09 (-0.06%)
After Hours: 1/30/2026, 8:14:29 PM
Taking everything into account, QCOM scores 7 out of 10 in our fundamental rating. QCOM was compared to 113 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. Finally QCOM also has an excellent dividend rating. This makes QCOM very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year QCOM was profitable.
- QCOM had a positive operating cash flow in the past year.
- 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 Return On Assets of 11.05%. This is amongst the best in the industry. QCOM outperforms 81.42% of its industry peers.
- QCOM has a better Return On Equity (26.13%) than 90.27% of its industry peers.
- QCOM has a better Return On Invested Capital (21.40%) than 93.81% of its industry peers.
- QCOM had an Average Return On Invested Capital over the past 3 years of 17.48%. This is significantly above the industry average of 10.85%.
- The last Return On Invested Capital (21.40%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROIC | 21.4% |
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
1.3 Margins
- QCOM has a better Profit Margin (12.51%) than 69.03% of its industry peers.
- In the last couple of years the Profit Margin of QCOM has declined.
- QCOM has a Operating Margin of 27.99%. This is amongst the best in the industry. QCOM outperforms 87.61% of its industry peers.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- With a decent Gross Margin value of 55.43%, QCOM is doing good in the industry, outperforming 76.11% 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 | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% |
OM growth 3Y-5.8%
OM growth 5Y6.56%
PM growth 3Y-24.67%
PM growth 5Y-12.15%
GM growth 3Y-1.41%
GM growth 5Y-0.7%
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 less shares outstanding
- The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
- The debt/assets ratio for QCOM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.03 indicates that QCOM is not in any danger for bankruptcy at the moment.
- QCOM has a Altman-Z score of 6.03. This is in the better half of the industry: QCOM outperforms 60.18% of its industry peers.
- QCOM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.16, QCOM is doing good in the industry, outperforming 73.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.70 indicates that QCOM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.70, QCOM is not doing good in the industry: 75.22% of the companies in the same industry are doing better.
- 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.03 |
ROIC/WACC1.99
WACC10.73%
2.3 Liquidity
- QCOM has a Current Ratio of 2.82. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.82, QCOM perfoms like the industry average, outperforming 48.67% of the companies in the same industry.
- A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
- With a Quick ratio value of 2.10, QCOM perfoms like the industry average, outperforming 49.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.83% over the past year.
- The Earnings Per Share has been growing by 23.54% on average over the past years. This is a very strong growth
- Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
- QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.30% yearly.
EPS 1Y (TTM)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
3.2 Future
- Based on estimates for the next years, QCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
- Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y2.57%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
EPS Next 5Y8.23%
Revenue Next Year4%
Revenue Next 2Y2.62%
Revenue Next 3Y3.64%
Revenue Next 5Y4.71%
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 12.60 indicates a correct valuation of QCOM.
- Compared to the rest of the industry, the Price/Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 95.58% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (28.32), we can say QCOM is valued rather cheaply.
- The Price/Forward Earnings ratio is 12.29, which indicates a correct valuation of QCOM.
- QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.69% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (25.57), we can say QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 91.15% of the companies are valued more expensively.
- QCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QCOM does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)4.9
PEG (5Y)0.54
EPS Next 2Y2.44%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.34%, QCOM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.50, QCOM pays a better dividend. On top of this QCOM pays more dividend than 94.69% of the companies listed in the same industry.
- QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
- On average, the dividend of QCOM grows each year by 6.56%, which is quite nice.
- 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)6.56%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- QCOM pays out 68.67% of its income as dividend. This is not a sustainable payout ratio.
- QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.67%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
QUALCOMM INC / QCOM FAQ
What is the fundamental rating for QCOM stock?
ChartMill assigns a fundamental rating of 7 / 10 to QCOM.
What is the valuation status for QCOM stock?
ChartMill assigns a valuation rating of 7 / 10 to QUALCOMM INC (QCOM). This can be considered as Undervalued.
What is the profitability of QCOM stock?
QUALCOMM INC (QCOM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for QCOM stock?
The Price/Earnings (PE) ratio for QUALCOMM INC (QCOM) is 12.6 and the Price/Book (PB) ratio is 7.64.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 2.57% in the next year.