Should Quality-Oriented Investors Explore QUALCOMM INC (NASDAQ:QCOM)?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if QUALCOMM INC (NASDAQ:QCOM) is suited for quality investing. Investors should of course do their own research, but we spotted QUALCOMM INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into QUALCOMM INC's Quality Metrics.

• QUALCOMM INC has shown strong performance in revenue growth over the past 5 years, with a 9.64% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 37.83%, QUALCOMM INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of QUALCOMM INC stands at 1.57, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• QUALCOMM INC demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• QUALCOMM INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 18.04%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of QUALCOMM INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 106 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 is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of QCOM contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.