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Why Quality-Oriented Investors Should Consider NASDAQ:QCOM.

By Mill Chart

Last update: May 9, 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.

What matters for quality investors.

  • QUALCOMM INC has achieved substantial revenue growth over the past 5 years, with a 9.64% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • QUALCOMM INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 39.53% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 1.26, QUALCOMM INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a robust Profit Quality (5-year) ratio of 103.0%, QUALCOMM INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • QUALCOMM INC has experienced impressive EBIT growth over the past 5 years, with 18.04% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, QUALCOMM INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:QCOM?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, QCOM scores 7 out of 10 in our fundamental rating. QCOM was compared to 107 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.

For an up to date full fundamental analysis you can check the fundamental report of QCOM

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

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.

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