NASDAQ:QCOM stands out as a stock that provides good value for the fundamentals it showcases.

Consider QUALCOMM INC (NASDAQ:QCOM) as a top value stock, identified by our stock screening tool. NASDAQ:QCOM shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NASDAQ:QCOM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:QCOM boasts a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 88.89% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (27.54), we can say QCOM is valued slightly cheaper.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 88.89% of the companies listed in the same industry.
• QCOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
• 77.78% of the companies in the same industry are more expensive than QCOM, based on the Enterprise Value to EBITDA ratio.
• 92.59% of the companies in the same industry are more expensive than QCOM, based on the Price/Free Cash Flow ratio.
• QCOM has an outstanding profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:QCOM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:QCOM has earned a 9 out of 10:

• The Return On Assets of QCOM (18.39%) is better than 92.59% of its industry peers.
• Looking at the Return On Equity, with a value of 38.60%, QCOM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
• QCOM has a Return On Invested Capital of 18.14%. This is amongst the best in the industry. QCOM outperforms 91.67% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for QCOM is significantly above the industry average of 11.13%.
• Looking at the Profit Margin, with a value of 26.03%, QCOM belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
• In the last couple of years the Profit Margin of QCOM has grown nicely.
• Looking at the Operating Margin, with a value of 26.32%, QCOM belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
• In the last couple of years the Operating Margin of QCOM has grown nicely.
• The Gross Margin of QCOM (56.22%) is better than 77.78% of its industry peers.

Understanding NASDAQ:QCOM's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:QCOM was assigned a score of 7 for health:

• An Altman-Z score of 5.97 indicates that QCOM is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 5.97, QCOM is doing good in the industry, outperforming 63.89% of the companies in the same industry.
• The Debt to FCF ratio of QCOM is 1.31, which is an excellent value as it means it would take QCOM, only 1.31 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of QCOM (1.31) is better than 76.85% of its industry peers.
• Although QCOM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• QCOM has a Current Ratio of 2.40. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.

Exploring NASDAQ:QCOM's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:QCOM has received a 6 out of 10:

• The Earnings Per Share has grown by an impressive 21.40% over the past year.
• Measured over the past years, QCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.53% on average per year.
• QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
• Measured over the past years, QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 14.76% on average per year.
• The Earnings Per Share is expected to grow by 10.61% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.