QUALCOMM INC (1QCOM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1QCOM - US7475251036 - Common Stock
133.1 EUR
-7.56 (-5.37%)
We assign a fundamental rating of 6 out of 10 to 1QCOM. 1QCOM was compared to 68 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making 1QCOM a very profitable company, without any liquidiy or solvency issues. 1QCOM has a decent growth rate and is not valued too expensively. With these ratings, 1QCOM could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- 1QCOM had positive earnings in the past year.
- In the past year 1QCOM had a positive cash flow from operations.
- Each year in the past 5 years 1QCOM has been profitable.
- Each year in the past 5 years 1QCOM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1QCOM (11.05%) is comparable to the rest of the industry.
- The Return On Equity of 1QCOM (26.13%) is better than 73.53% of its industry peers.
- 1QCOM's Return On Invested Capital of 21.40% is amongst the best of the industry. 1QCOM outperforms 82.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1QCOM is above the industry average of 14.62%.
- The 3 year average ROIC (17.48%) for 1QCOM is below the current ROIC(21.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROIC | 21.4% |
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
1.3 Margins
- 1QCOM has a Profit Margin (12.51%) which is comparable to the rest of the industry.
- 1QCOM's Profit Margin has declined in the last couple of years.
- 1QCOM has a Operating Margin of 27.99%. This is in the better half of the industry: 1QCOM outperforms 66.18% of its industry peers.
- 1QCOM's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1QCOM (55.43%) is better than 76.47% of its industry peers.
- In the last couple of years the Gross Margin of 1QCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% |
OM growth 3Y-5.8%
OM growth 5Y6.56%
PM growth 3Y-24.67%
PM growth 5Y-12.15%
GM growth 3Y-1.41%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1QCOM is creating value.
- Compared to 1 year ago, 1QCOM has less shares outstanding
- 1QCOM has less shares outstanding than it did 5 years ago.
- 1QCOM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.32 indicates that 1QCOM is not in any danger for bankruptcy at the moment.
- 1QCOM's Altman-Z score of 6.32 is in line compared to the rest of the industry. 1QCOM outperforms 57.35% of its industry peers.
- The Debt to FCF ratio of 1QCOM is 1.16, which is an excellent value as it means it would take 1QCOM, only 1.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1QCOM (1.16) is better than 67.65% of its industry peers.
- 1QCOM has a Debt/Equity ratio of 0.70. This is a neutral value indicating 1QCOM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.70, 1QCOM is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
- Although 1QCOM 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.32 |
ROIC/WACC2.02
WACC10.58%
2.3 Liquidity
- 1QCOM has a Current Ratio of 2.82. This indicates that 1QCOM is financially healthy and has no problem in meeting its short term obligations.
- 1QCOM's Current ratio of 2.82 is fine compared to the rest of the industry. 1QCOM outperforms 72.06% of its industry peers.
- 1QCOM has a Quick Ratio of 2.10. This indicates that 1QCOM is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of 1QCOM (2.10) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- 1QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.83%, which is quite good.
- 1QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.54% yearly.
- 1QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.66%.
- The Revenue has been growing by 15.30% on average over the past years. This is quite good.
EPS 1Y (TTM)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
3.2 Future
- The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
- Based on estimates for the next years, 1QCOM will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y2.82%
EPS Next 2Y2.66%
EPS Next 3Y3.48%
EPS Next 5Y8.23%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y3.64%
Revenue Next 5Y4.71%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.95, the valuation of 1QCOM can be described as correct.
- Based on the Price/Earnings ratio, 1QCOM is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1QCOM is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.60 indicates a correct valuation of 1QCOM.
- Based on the Price/Forward Earnings ratio, 1QCOM is valued cheaper than 88.24% of the companies in the same industry.
- 1QCOM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1QCOM is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1QCOM indicates a rather cheap valuation: 1QCOM is cheaper than 94.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 12.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of 1QCOM may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)0.55
EPS Next 2Y2.66%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.21%, 1QCOM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.72, 1QCOM pays a better dividend. On top of this 1QCOM pays more dividend than 94.12% of the companies listed in the same industry.
- 1QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
- The dividend of 1QCOM is nicely growing with an annual growth rate of 6.56%!
Dividend Growth(5Y)6.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 68.67% of the earnings are spent on dividend by 1QCOM. This is not a sustainable payout ratio.
- The dividend of 1QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.67%
EPS Next 2Y2.66%
EPS Next 3Y3.48%
QUALCOMM INC / 1QCOM.MI FAQ
What is the fundamental rating for 1QCOM stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1QCOM.MI.
What is the valuation status for 1QCOM stock?
ChartMill assigns a valuation rating of 6 / 10 to QUALCOMM INC (1QCOM.MI). This can be considered as Fairly Valued.
How profitable is QUALCOMM INC (1QCOM.MI) stock?
QUALCOMM INC (1QCOM.MI) has a profitability rating of 7 / 10.
How financially healthy is QUALCOMM INC?
The financial health rating of QUALCOMM INC (1QCOM.MI) is 7 / 10.
Can you provide the dividend sustainability for 1QCOM stock?
The dividend rating of QUALCOMM INC (1QCOM.MI) is 6 / 10 and the dividend payout ratio is 68.67%.