QUALCOMM INC (QCOM)
US7475251036 - Common Stock
Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 107 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. QCOM has a correct valuation and a medium growth rate.
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.
In the past 5 years QCOM has always 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 (15.77%) than 85.85% of its industry peers.
The Return On Equity of QCOM (34.27%) is better than 92.45% of its industry peers.
QCOM has a Return On Invested Capital of 16.23%. This is amongst the best in the industry. QCOM outperforms 85.85% of its industry peers.
QCOM had an Average Return On Invested Capital over the past 3 years of 24.51%. This is significantly above the industry average of 10.71%.
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
Looking at the Profit Margin, with a value of 23.03%, QCOM belongs to the top of the industry, outperforming 80.19% of the companies in the same industry.
QCOM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.85%, QCOM belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
QCOM's Operating Margin has improved in the last couple of years.
QCOM has a Gross Margin of 55.80%. This is in the better half of the industry: QCOM outperforms 75.47% 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 | 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
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 less shares outstanding
The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
The debt/assets ratio for QCOM has been reduced compared to a year ago.
2.2 Solvency
QCOM has an Altman-Z score of 6.73. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM has a better Altman-Z score (6.73) 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.
QCOM has a better Debt to FCF ratio (1.26) than 72.64% of its industry peers.
QCOM has a Debt/Equity ratio of 0.59. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, QCOM is doing worse than 78.30% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for QCOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 6.73 |
ROIC/WACC1.31
WACC12.35%
2.3 Liquidity
QCOM has a Current Ratio of 2.65. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM's Current ratio of 2.65 is in line compared to the rest of the industry. QCOM outperforms 42.45% of its industry peers.
QCOM has a Quick Ratio of 1.98. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting its short term obligations.
QCOM has a Quick ratio of 1.98. This is comparable to the rest of the industry: QCOM outperforms 45.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for QCOM have decreased strongly by -14.42% in the last year.
Measured over the past years, QCOM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.65% on average per year.
The Revenue for QCOM has decreased by -11.35% in the past year. This is quite bad
Measured over the past years, QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 9.64% on average per year.
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 Q2Q1.31%
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 10.30% yearly.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 7.91% on average per year.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.35, QCOM is valued on the expensive side.
79.25% of the companies in the same industry are more expensive than QCOM, based on the Price/Earnings ratio.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.15.
The Price/Forward Earnings ratio is 17.58, which indicates a rather expensive current valuation of QCOM.
Based on the Price/Forward Earnings ratio, QCOM is valued a bit cheaper than 74.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, QCOM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
QCOM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. QCOM is cheaper than 70.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 87.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.66 | ||
| EV/EBITDA | 19.63 |
4.3 Compensation for Growth
QCOM's 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)1.15
PEG (5Y)1.09
EPS Next 2Y14.5%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 1.88%.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 1.84. QCOM pays more dividend than 90.57% of the companies in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
QCOM pays out 42.64% of its income as dividend. 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 (5/17/2024, 7:22:11 PM)
After market: 194 +0.14 (+0.07%)193.86
+0.59 (+0.31%)
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 Cap216.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 21.35 | ||
| Fwd PE | 17.58 | ||
| 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)1.15
PEG (5Y)1.09
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