QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
181.03 USD
-6.65 (-3.54%)
180.86 USD
-0.17 (-0.09%)
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. 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.
In the past 5 years QCOM always reported a positive cash flow from operatings.
1.2 Ratios
QCOM has a better Return On Assets (21.10%) than 92.86% of its industry peers.
QCOM's Return On Equity of 42.55% is amongst the best of the industry. QCOM outperforms 93.75% of its industry peers.
QCOM has a better Return On Invested Capital (20.40%) than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 11.03%.
| 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
QCOM's Profit Margin of 26.77% is amongst the best of the industry. QCOM outperforms 86.61% of its industry peers.
QCOM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.10%, QCOM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of QCOM has grown nicely.
QCOM has a better Gross Margin (55.68%) than 77.68% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QCOM is creating value.
The number of shares outstanding for QCOM remains at a similar level compared to 1 year ago.
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
QCOM has an Altman-Z score of 6.96. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.96, QCOM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of QCOM is 1.27, which is an excellent value as it means it would take QCOM, only 1.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.27, QCOM is in the better half of the industry, outperforming 72.32% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that QCOM is somewhat dependend on debt financing.
QCOM's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. QCOM is outperformed by 71.43% 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 | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.96 |
ROIC/WACC1.77
WACC11.55%
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.
QCOM has a Current ratio (3.19) which is comparable to the rest of the industry.
A Quick Ratio of 2.38 indicates that QCOM has no problem at all paying 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
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.85%, which is quite impressive.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
The Revenue has grown by 15.82% 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)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
QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y18.82%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
EPS Next 5Y8.66%
Revenue Next Year12.94%
Revenue Next 2Y7.18%
Revenue Next 3Y5.8%
Revenue Next 5Y5.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 15.45, which indicates a correct valuation of QCOM.
93.75% of the companies in the same industry are more expensive than QCOM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.83, QCOM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.67, QCOM is valued correctly.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
QCOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
QCOM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QCOM is cheaper than 82.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 14.65 |
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)0.66
EPS Next 2Y9.92%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, QCOM pays a better dividend. On top of this QCOM pays more dividend than 90.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 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
32.79% of the earnings are spent on dividend by QCOM. This is a low number and sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.79%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
181.03
-6.65 (-3.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-6.58%
Ins Owners0.05%
Ins Owner Change-0.72%
Market Cap195.11B
Revenue(TTM)43.26B
Net Income(TTM)11.58B
Analysts73.62
Price Target181.69 (0.36%)
Short Float %2.21%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)-0.04%
PT rev (3m)1.07%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.67 | ||
| P/S | 4.51 | ||
| P/FCF | 16.79 | ||
| P/OCF | 15.41 | ||
| P/B | 7.17 | ||
| P/tB | 13.33 | ||
| EV/EBITDA | 14.65 |
EPS(TTM)11.72
EY6.47%
EPS(NY)12.34
Fwd EY6.81%
FCF(TTM)10.78
FCFY5.96%
OCF(TTM)11.75
OCFY6.49%
SpS40.13
BVpS25.24
TBVpS13.58
PEG (NY)0.82
PEG (5Y)0.66
Graham Number81.59
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%
ROICexgc growth 3Y-22.23%
ROICexgc 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 | 6.96 |
F-Score7
WACC11.55%
ROIC/WACC1.77
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 Y18.82%
EPS Next 2Y9.92%
EPS Next 3Y7.79%
EPS Next 5Y8.66%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.94%
Revenue Next 2Y7.18%
Revenue Next 3Y5.8%
Revenue Next 5Y5.1%
EBIT growth 1Y27.63%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.11%
EBIT Next 3Y8.4%
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%
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 of QUALCOMM INC (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 9 / 10.
What is the expected EPS growth for QUALCOMM INC (QCOM) stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 18.82% in the next year.
Is the dividend of QUALCOMM INC sustainable?
The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 32.79%.