QORVO INC (QRVO) Stock Fundamental Analysis
NASDAQ:QRVO - US74736K1016 - Common Stock
92.95 USD
+3.88 (+4.36%)
92.95 USD
0 (0%)
QRVO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has an excellent financial health rating, but there are some minor concerns on its profitability. QRVO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
QRVO had positive earnings in the past year.
In the past year QRVO had a positive cash flow from operations.
QRVO had positive earnings in 4 of the past 5 years.
In the past 5 years QRVO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.35%, QRVO perfoms like the industry average, outperforming 53.64% of the companies in the same industry.
With a Return On Equity value of 2.36%, QRVO perfoms like the industry average, outperforming 53.64% of the companies in the same industry.
The Return On Invested Capital of QRVO (5.65%) is better than 66.36% of its industry peers.
QRVO had an Average Return On Invested Capital over the past 3 years of 4.84%. This is significantly below the industry average of 10.97%.
The 3 year average ROIC (4.84%) for QRVO is below the current ROIC(5.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.36% | ||
| ROIC | 5.65% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)4.84%
ROIC(5y)8.01%
1.3 Margins
QRVO's Profit Margin of 2.22% is in line compared to the rest of the industry. QRVO outperforms 53.64% of its industry peers.
QRVO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.18%, QRVO is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
QRVO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.44%, QRVO is in line with its industry, outperforming 45.45% of the companies in the same industry.
QRVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.18% | ||
| PM (TTM) | 2.22% | ||
| GM | 42.44% |
OM growth 3Y-28.13%
OM growth 5Y-7.18%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.12%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QRVO is destroying value.
The number of shares outstanding for QRVO has been reduced compared to 1 year ago.
Compared to 5 years ago, QRVO has less shares outstanding
Compared to 1 year ago, QRVO has an improved debt to assets ratio.
2.2 Solvency
QRVO has an Altman-Z score of 3.12. This indicates that QRVO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.12, QRVO is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of QRVO is 2.64, which is a good value as it means it would take QRVO, 2.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of QRVO (2.64) is better than 64.55% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that QRVO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, QRVO is not doing good in the industry: 71.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.5
WACC11.3%
2.3 Liquidity
A Current Ratio of 2.81 indicates that QRVO has no problem at all paying its short term obligations.
With a Current ratio value of 2.81, QRVO perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
QRVO has a Quick Ratio of 2.01. This indicates that QRVO is financially healthy and has no problem in meeting its short term obligations.
QRVO has a Quick ratio of 2.01. This is comparable to the rest of the industry: QRVO outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
QRVO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.63%.
QRVO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.74% yearly.
QRVO shows a decrease in Revenue. In the last year, the revenue decreased by -8.84%.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-13.63%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%5.75%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.66%
3.2 Future
QRVO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.83% yearly.
Based on estimates for the next years, QRVO will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y6.24%
EPS Next 2Y9.18%
EPS Next 3Y10.26%
EPS Next 5Y8.83%
Revenue Next Year0.69%
Revenue Next 2Y2.5%
Revenue Next 3Y3.97%
Revenue Next 5Y3.02%
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 accelerating.
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
The Price/Earnings ratio is 15.94, which indicates a correct valuation of QRVO.
Compared to the rest of the industry, the Price/Earnings ratio of QRVO indicates a rather cheap valuation: QRVO is cheaper than 88.18% of the companies listed in the same industry.
QRVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
With a Price/Forward Earnings ratio of 13.49, QRVO is valued correctly.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaper than 91.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.81. QRVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued a bit cheaper than 78.18% of the companies in the same industry.
90.00% of the companies in the same industry are more expensive than QRVO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.55
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.95
+3.88 (+4.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change-1.4%
Ins Owners0.44%
Ins Owner Change17.9%
Market Cap8.61B
Analysts66.47
Price Target98.29 (5.75%)
Short Float %5.27%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.05%
Min EPS beat(2)38.89%
Max EPS beat(2)49.2%
EPS beat(4)3
Avg EPS beat(4)29.66%
Min EPS beat(4)-0.5%
Max EPS beat(4)49.2%
EPS beat(8)7
Avg EPS beat(8)25.87%
EPS beat(12)11
Avg EPS beat(12)36.76%
EPS beat(16)15
Avg EPS beat(16)28.66%
Revenue beat(2)2
Avg Revenue beat(2)1.87%
Min Revenue beat(2)0.24%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)2.23%
Revenue beat(12)7
Avg Revenue beat(12)1.5%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)16.29%
PT rev (3m)15.03%
EPS NQ rev (1m)25.45%
EPS NQ rev (3m)24.55%
EPS NY rev (1m)10.93%
EPS NY rev (3m)11.24%
Revenue NQ rev (1m)7.33%
Revenue NQ rev (3m)7.59%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.49 | ||
| P/S | 2.36 | ||
| P/FCF | 14.67 | ||
| P/OCF | 11.89 | ||
| P/B | 2.51 | ||
| P/tB | 10.83 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)5.83
EY6.27%
EPS(NY)6.89
Fwd EY7.41%
FCF(TTM)6.34
FCFY6.82%
OCF(TTM)7.82
OCFY8.41%
SpS39.41
BVpS37.1
TBVpS8.58
PEG (NY)2.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.36% | ||
| ROCE | 7.15% | ||
| ROIC | 5.65% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 21.11% | ||
| OM | 10.18% | ||
| PM (TTM) | 2.22% | ||
| GM | 42.44% | ||
| FCFM | 16.08% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)4.84%
ROIC(5y)8.01%
ROICexc(3y)5.94%
ROICexc(5y)9.75%
ROICexgc(3y)18.11%
ROICexgc(5y)26.71%
ROCE(3y)6.13%
ROCE(5y)10.14%
ROICexcg growth 3Y-21.22%
ROICexcg growth 5Y0.33%
ROICexc growth 3Y-25%
ROICexc growth 5Y0.33%
OM growth 3Y-28.13%
OM growth 5Y-7.18%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.12%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 47.55% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.68% | ||
| Profit Quality | 722.64% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 3.12 |
F-Score7
WACC11.3%
ROIC/WACC0.5
Cap/Depr(3y)44.31%
Cap/Depr(5y)46.6%
Cap/Sales(3y)3.84%
Cap/Sales(5y)4.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.63%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%5.75%
EPS Next Y6.24%
EPS Next 2Y9.18%
EPS Next 3Y10.26%
EPS Next 5Y8.83%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.66%
Revenue Next Year0.69%
Revenue Next 2Y2.5%
Revenue Next 3Y3.97%
Revenue Next 5Y3.02%
EBIT growth 1Y-5.57%
EBIT growth 3Y-33.27%
EBIT growth 5Y-4.58%
EBIT Next Year29.22%
EBIT Next 3Y11.42%
EBIT Next 5Y9.85%
FCF growth 1Y27.58%
FCF growth 3Y-16.61%
FCF growth 5Y-9.12%
OCF growth 1Y17.73%
OCF growth 3Y-15.98%
OCF growth 5Y-8.03%