QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making QCOM a very profitable company, without any liquidiy or solvency issues. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth QCOM also has an excellent dividend rating. These ratings would make QCOM suitable 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.
In the past 5 years QCOM has always been profitable.
QCOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.10%, QCOM belongs to the top of the industry, outperforming 93.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.55%, QCOM belongs to the top of the industry, outperforming 93.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.40%, QCOM belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.74%.
| 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 has a Profit Margin of 26.77%. 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.
The Operating Margin of QCOM (28.10%) is better than 87.27% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
QCOM has a better Gross Margin (55.68%) than 75.45% of its industry peers.
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 | 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
QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 6.04 indicates that QCOM is not in any danger for bankruptcy at the moment.
QCOM has a better Altman-Z score (6.04) than 65.45% 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.
Looking at the Debt to FCF ratio, with a value of 1.27, QCOM is in the better half of the industry, outperforming 71.82% of the companies in the same industry.
QCOM has a Debt/Equity ratio of 0.54. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
The Debt to Equity ratio of QCOM (0.54) is worse than 72.73% 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 | 6.04 |
ROIC/WACC2.18
WACC9.34%
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 in line with its industry peers.
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.
QCOM's Quick ratio of 2.38 is in line compared to the rest of the industry. QCOM outperforms 55.45% of its industry peers.
| 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.
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.
The Revenue has grown by 15.82% in the past year. This is quite good.
QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 4.90% on average per year.
EPS Next Y17.54%
EPS Next 2Y9.26%
EPS Next 3Y6.72%
EPS Next 5Y7.17%
Revenue Next Year12.69%
Revenue Next 2Y7.08%
Revenue Next 3Y5.66%
Revenue Next 5Y4.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 12.64, QCOM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 91.82% of the companies listed in the same industry.
QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of QCOM.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 92.73% of the companies in the same industry.
QCOM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaper than 81.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.76 | ||
| EV/EBITDA | 11.58 |
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)0.72
PEG (5Y)0.54
EPS Next 2Y9.26%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.43%.
Compared to an average industry Dividend Yield of 2.35, 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 2.39, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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
QCOM pays out 32.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.79%
EPS Next 2Y9.26%
EPS Next 3Y6.72%
148.19
+1.43 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change6.14%
Ins Owners0.05%
Ins Owner Change-1.24%
Market Cap159.87B
Analysts73.33
Price Target179.76 (21.3%)
Short Float %2.18%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)0.03%
PT rev (3m)-9.62%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.16 | ||
| P/S | 3.7 | ||
| P/FCF | 13.76 | ||
| P/OCF | 12.62 | ||
| P/B | 5.88 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)11.72
EY7.91%
EPS(NY)12.19
Fwd EY8.22%
FCF(TTM)10.77
FCFY7.27%
OCF(TTM)11.74
OCFY7.92%
SpS40.1
BVpS25.22
TBVpS13.57
PEG (NY)0.72
PEG (5Y)0.54
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 | 6.04 |
F-Score7
WACC9.34%
ROIC/WACC2.18
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 Y17.54%
EPS Next 2Y9.26%
EPS Next 3Y6.72%
EPS Next 5Y7.17%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.69%
Revenue Next 2Y7.08%
Revenue Next 3Y5.66%
Revenue Next 5Y4.9%
EBIT growth 1Y27.63%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year27.47%
EBIT Next 3Y7.62%
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%