QORVO INC (QRVO)
US74736K1016 - Common Stock
QRVO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While QRVO seems to be doing ok healthwise, there are quite some concerns on its profitability. QRVO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year QRVO was profitable.
In the past year QRVO had a positive cash flow from operations.
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
The Return On Assets of QRVO (-3.16%) is worse than 60.38% of its industry peers.
With a Return On Equity value of -5.81%, QRVO perfoms like the industry average, outperforming 40.57% of the companies in the same industry.
The Return On Invested Capital of QRVO (0.01%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for QRVO is below the industry average of 10.73%.
The last Return On Invested Capital (0.01%) for QRVO is well below the 3 year average (6.17%), which needs to be investigated, but indicates that QRVO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.16% | ||
| ROE | -5.81% | ||
| ROIC | 0.01% |
ROA(3y)4.74%
ROA(5y)5.9%
ROE(3y)7.79%
ROE(5y)9.4%
ROIC(3y)6.17%
ROIC(5y)7.14%
1.3 Margins
The Operating Margin of QRVO (0.03%) is worse than 60.38% of its industry peers.
In the last couple of years the Operating Margin of QRVO has declined.
The Gross Margin of QRVO (35.28%) is worse than 66.98% of its industry peers.
QRVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.03% | ||
| PM (TTM) | N/A | ||
| GM | 35.28% |
OM growth 3Y-52.51%
OM growth 5Y-19.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.58%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QRVO is destroying value.
Compared to 1 year ago, QRVO has less shares outstanding
The number of shares outstanding for QRVO has been reduced compared to 5 years ago.
The debt/assets ratio for QRVO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.52 indicates that QRVO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, QRVO is doing worse than 62.26% of the companies in the same industry.
QRVO has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as QRVO would need 3.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.58, QRVO is doing good in the industry, outperforming 60.38% of the companies in the same industry.
QRVO has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of QRVO (0.43) is worse than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 2.52 |
ROIC/WACC0
WACC11.58%
2.3 Liquidity
A Current Ratio of 1.90 indicates that QRVO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.90, QRVO is doing worse than 74.53% of the companies in the same industry.
QRVO has a Quick Ratio of 1.33. This is a normal value and indicates that QRVO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of QRVO (1.33) is worse than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
QRVO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.03%.
Measured over the past 5 years, QRVO shows a small growth in Earnings Per Share. The EPS has been growing by 1.48% on average per year.
QRVO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.64%.
QRVO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
EPS 1Y (TTM)-42.03%
EPS 3Y-13.91%
EPS 5Y1.48%
EPS growth Q2Q180%
Revenue 1Y (TTM)-15.64%
Revenue growth 3Y-2.08%
Revenue growth 5Y4.05%
Revenue growth Q2Q44.47%
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 17.34% yearly.
Based on estimates for the next years, QRVO will show a quite strong growth in Revenue. The Revenue will grow by 8.23% on average per year.
EPS Next Y24.85%
EPS Next 2Y24.73%
EPS Next 3Y17.98%
EPS Next 5Y17.34%
Revenue Next Year10.05%
Revenue Next 2Y8.86%
Revenue Next 3Y6.75%
Revenue Next 5Y8.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.85, QRVO is valued on the expensive side.
78.30% of the companies in the same industry are more expensive than QRVO, based on the Price/Earnings ratio.
QRVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
Based on the Price/Forward Earnings ratio of 12.36, the valuation of QRVO can be described as correct.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaper than 91.51% of the companies in the same industry.
QRVO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QRVO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QRVO indicates a rather cheap valuation: QRVO is cheaper than 89.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.32 | ||
| EV/EBITDA | 31.52 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QRVO's earnings are expected to grow with 17.98% in the coming years.
PEG (NY)0.76
PEG (5Y)12.75
EPS Next 2Y24.73%
EPS Next 3Y17.98%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
QORVO INC
NASDAQ:QRVO (5/3/2024, 7:14:39 PM)
After market: 95.95 0 (0%)95.95
+0.28 (+0.29%)
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 Cap9.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 18.85 | ||
| Fwd PE | 12.36 | ||
| 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)0.76
PEG (5Y)12.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.16% | ||
| ROE | -5.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.03% | ||
| PM (TTM) | N/A | ||
| GM | 35.28% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.33 | ||
| 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)-42.03%
EPS 3Y-13.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.64%
Revenue growth 3Y-2.08%
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