QORVO INC (QRVO) Stock Fundamental Analysis
NASDAQ:QRVO - Nasdaq - US74736K1016 - Common Stock - Currency: USD
Taking everything into account, QRVO scores 4 out of 10 in our fundamental rating. QRVO was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has only an average score on both its financial health and profitability. QRVO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year QRVO was profitable.
QRVO had a positive operating cash flow in the past year.
QRVO had positive earnings in 4 of the past 5 years.
Of the past 5 years QRVO 4 years had a positive operating cash flow.
1.2 Ratios
QRVO's Return On Assets of 0.45% is in line compared to the rest of the industry. QRVO outperforms 44.55% of its industry peers.
QRVO has a Return On Equity (0.80%) which is in line with its industry peers.
QRVO's Return On Invested Capital of 6.15% is fine compared to the rest of the industry. QRVO outperforms 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QRVO is significantly below the industry average of 11.17%.
The last Return On Invested Capital (6.15%) for QRVO is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 0.8% | ||
| ROIC | 6.15% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)3.43%
ROIC(5y)7.16%
1.3 Margins
Looking at the Profit Margin, with a value of 0.71%, QRVO is in line with its industry, outperforming 44.55% of the companies in the same industry.
In the last couple of years the Profit Margin of QRVO has declined.
Looking at the Operating Margin, with a value of 10.59%, QRVO is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
QRVO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.13%, QRVO perfoms like the industry average, outperforming 41.82% 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 | 10.59% | ||
| PM (TTM) | 0.71% | ||
| GM | 41.13% |
OM growth 3Y-54.35%
OM growth 5Y-29.3%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.68%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QRVO is destroying value.
Compared to 1 year ago, QRVO has less shares outstanding
QRVO has less shares outstanding than it did 5 years ago.
QRVO has a better debt/assets ratio than last year.
2.2 Solvency
QRVO has an Altman-Z score of 2.81. This is not the best score and indicates that QRVO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.81, QRVO perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
The Debt to FCF ratio of QRVO is 3.20, which is a good value as it means it would take QRVO, 3.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.20, QRVO is doing good in the industry, outperforming 61.82% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that QRVO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, 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 | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.58
WACC10.63%
2.3 Liquidity
A Current Ratio of 2.60 indicates that QRVO has no problem at all paying its short term obligations.
QRVO has a Current ratio of 2.60. This is comparable to the rest of the industry: QRVO outperforms 40.91% of its industry peers.
A Quick Ratio of 1.78 indicates that QRVO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.78, QRVO is not doing good in the industry: 62.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The earnings per share for QRVO have decreased by -7.07% in the last year.
The Earnings Per Share has been decreasing by -1.74% on average over the past years.
The Revenue has decreased by -1.34% in the past year.
Measured over the past years, QRVO shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)-7.07%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%2.16%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.6%
3.2 Future
The Earnings Per Share is expected to grow by 12.20% on average over the next years. This is quite good.
QRVO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y-4.49%
EPS Next 2Y6.67%
EPS Next 3Y8.23%
EPS Next 5Y12.2%
Revenue Next Year-0.93%
Revenue Next 2Y2.08%
Revenue Next 3Y2.79%
Revenue Next 5Y3.92%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.24, which indicates a correct valuation of QRVO.
QRVO's Price/Earnings ratio is rather cheap when compared to the industry. QRVO is cheaper than 88.18% of the companies in the same industry.
QRVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 13.86, QRVO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QRVO indicates a rather cheap valuation: QRVO is cheaper than 84.55% of the companies listed in the same industry.
QRVO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued a bit cheaper than the industry average as 79.09% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QRVO is valued cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.78 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.67%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.51
-2.41 (-3.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.08%
Inst Owner Change-0.03%
Ins Owners0.34%
Ins Owner Change-2.08%
Market Cap7.15B
Analysts66.67
Price Target85.44 (11.67%)
Short Float %6.62%
Short Ratio2.27
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)1
Avg EPS beat(2)15.27%
Min EPS beat(2)-0.5%
Max EPS beat(2)31.03%
EPS beat(4)3
Avg EPS beat(4)15.67%
Min EPS beat(4)-0.5%
Max EPS beat(4)31.03%
EPS beat(8)7
Avg EPS beat(8)41.8%
EPS beat(12)11
Avg EPS beat(12)30.13%
EPS beat(16)15
Avg EPS beat(16)24.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)1.72%
Revenue beat(12)5
Avg Revenue beat(12)1.07%
Revenue beat(16)7
Avg Revenue beat(16)0.74%
PT rev (1m)-8.38%
PT rev (3m)-6.98%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 13.86 | ||
| P/S | 1.89 | ||
| P/FCF | 14.78 | ||
| P/OCF | 11.43 | ||
| P/B | 2.11 | ||
| P/tB | 11.7 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)5.78
EY7.55%
EPS(NY)5.52
Fwd EY7.22%
FCF(TTM)5.18
FCFY6.77%
OCF(TTM)6.7
OCFY8.75%
SpS40.58
BVpS36.19
TBVpS6.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 0.8% | ||
| ROCE | 7.79% | ||
| ROIC | 6.15% | ||
| ROICexc | 7.23% | ||
| ROICexgc | 19.63% | ||
| OM | 10.59% | ||
| PM (TTM) | 0.71% | ||
| GM | 41.13% | ||
| FCFM | 12.76% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)3.43%
ROIC(5y)7.16%
ROICexc(3y)4.17%
ROICexc(5y)8.69%
ROICexgc(3y)13.13%
ROICexgc(5y)23.72%
ROCE(3y)4.34%
ROCE(5y)9.06%
ROICexcg growth 3Y-49.96%
ROICexcg growth 5Y-23.58%
ROICexc growth 3Y-52.36%
ROICexc growth 5Y-23.58%
OM growth 3Y-54.35%
OM growth 5Y-29.3%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.68%
GM growth 5Y-0.28%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 46.06% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.16% | ||
| Profit Quality | 1791.96% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 2.81 |
F-Score8
WACC10.63%
ROIC/WACC0.58
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.07%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%2.16%
EPS Next Y-4.49%
EPS Next 2Y6.67%
EPS Next 3Y8.23%
EPS Next 5Y12.2%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.6%
Revenue Next Year-0.93%
Revenue Next 2Y2.08%
Revenue Next 3Y2.79%
Revenue Next 5Y3.92%
EBIT growth 1Y39970.2%
EBIT growth 3Y-57.61%
EBIT growth 5Y-27.32%
EBIT Next Year28.87%
EBIT Next 3Y17.41%
EBIT Next 5YN/A
FCF growth 1Y-14.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.18%
OCF growth 3YN/A
OCF growth 5YN/A