151.59 USD
-0.63 (-0.41%)
At close: Jan 30, 2026
151.5 USD
-0.09 (-0.06%)
After Hours: 1/30/2026, 8:14:29 PM
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QCOM is valued quite cheap, while showing a decent growth score. This is a good combination! Finally QCOM also has an excellent dividend rating. With these ratings, QCOM could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year QCOM was profitable.
- QCOM had a positive operating cash flow in the past year.
- QCOM had positive earnings in each of the past 5 years.
- Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
- QCOM has a better Return On Assets (11.05%) than 81.42% of its industry peers.
- The Return On Equity of QCOM (26.13%) is better than 90.27% of its industry peers.
- The Return On Invested Capital of QCOM (21.40%) is better than 93.81% 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 10.85%.
- The last Return On Invested Capital (21.40%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| 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
- The Profit Margin of QCOM (12.51%) is better than 69.03% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- QCOM has a Operating Margin of 27.99%. This is amongst the best in the industry. QCOM outperforms 87.61% of its industry peers.
- QCOM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 55.43%, QCOM is in the better half of the industry, outperforming 76.11% of the companies in the same industry.
- QCOM's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QCOM is creating value.
- The number of shares outstanding for QCOM has been reduced compared to 1 year ago.
- The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
- The debt/assets ratio for QCOM is higher compared to a year ago.
2.2 Solvency
- QCOM has an Altman-Z score of 6.05. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- QCOM has a Altman-Z score (6.05) which is comparable to the rest of the industry.
- The Debt to FCF ratio of QCOM is 1.16, which is an excellent value as it means it would take QCOM, only 1.16 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.16, QCOM is doing good in the industry, outperforming 73.45% of the companies in the same industry.
- QCOM has a Debt/Equity ratio of 0.70. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
- The Debt to Equity ratio of QCOM (0.70) is worse than 75.22% of its industry peers.
- Even though the debt/equity ratio score it not favorable for QCOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.05 |
ROIC/WACC1.99
WACC10.73%
2.3 Liquidity
- QCOM has a Current Ratio of 2.82. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
- QCOM's Current ratio of 2.82 is in line compared to the rest of the industry. QCOM outperforms 48.67% of its industry peers.
- A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
- QCOM has a Quick ratio of 2.10. This is comparable to the rest of the industry: QCOM outperforms 49.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.83%, which is quite good.
- QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.54% yearly.
- QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.66%.
- Measured over the past years, QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 15.30% on average per year.
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
- QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.23% yearly.
- Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y2.57%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
EPS Next 5Y8.23%
Revenue Next Year4%
Revenue Next 2Y2.62%
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
- With a Price/Earnings ratio of 12.60, QCOM is valued correctly.
- Based on the Price/Earnings ratio, QCOM is valued cheaper than 95.58% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, QCOM is valued rather cheaply.
- The Price/Forward Earnings ratio is 12.29, which indicates a correct valuation of QCOM.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 94.69% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (25.57), we can say QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
- QCOM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QCOM is cheaper than 91.15% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 93.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | 11.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QCOM does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)4.9
PEG (5Y)0.54
EPS Next 2Y2.44%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- QCOM has a Yearly Dividend Yield of 2.26%.
- QCOM's Dividend Yield is rather good when compared to the industry average which is at 0.49. QCOM pays more dividend than 92.92% of the companies in the same industry.
- QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
- The dividend of QCOM is nicely growing with an annual growth rate of 6.56%!
- QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
- QCOM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.56%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- QCOM pays out 68.67% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.67%
EPS Next 2Y2.44%
EPS Next 3Y3.3%
QUALCOMM INC / QCOM FAQ
What is the fundamental rating for QCOM stock?
ChartMill assigns a fundamental rating of 7 / 10 to QCOM.
What is the valuation status for QCOM stock?
ChartMill assigns a valuation rating of 7 / 10 to QUALCOMM INC (QCOM). This can be considered as Undervalued.
What is the profitability of QCOM stock?
QUALCOMM INC (QCOM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for QCOM stock?
The Price/Earnings (PE) ratio for QUALCOMM INC (QCOM) is 12.6 and the Price/Book (PB) ratio is 7.64.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 2.57% in the next year.