News Image

Why QUALCOMM INC (NASDAQ:QCOM) qualifies as a quality stock.

By Mill Chart

Last update: Mar 28, 2024

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.
  • QUALCOMM INC maintains a healthy Debt/Free Cash Flow Ratio of 1.57, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • QUALCOMM INC exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • 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.
  • QUALCOMM INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NASDAQ:QCOM

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

Taking everything into account, QCOM scores 6 out of 10 in our fundamental rating. QCOM was compared to 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.

Check the latest full fundamental report of QCOM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

Back