165.14 USD
+1.84 (+1.13%)
165.1 USD
-0.04 (-0.02%)
QCOM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM gets an excellent profitability rating and is at the same time showing great financial health properties. QCOM is valued quite cheap, while showing a decent growth score. This is a good combination! QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year QCOM was profitable.
In the past year QCOM had a positive cash flow from operations.
Each year in the past 5 years QCOM has been profitable.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QCOM (11.05%) is better than 83.93% of its industry peers.
QCOM's Return On Equity of 26.13% is amongst the best of the industry. QCOM outperforms 91.96% of its industry peers.
With an excellent Return On Invested Capital value of 21.40%, QCOM belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
QCOM had an Average Return On Invested Capital over the past 3 years of 17.48%. This is significantly above the industry average of 10.75%.
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
QCOM's Profit Margin of 12.51% is fine compared to the rest of the industry. QCOM outperforms 72.32% 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 88.39% of its industry peers.
In the last couple of years the Operating Margin of QCOM has grown nicely.
With a decent Gross Margin value of 55.43%, QCOM is doing good in the industry, outperforming 76.79% 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.
Compared to 1 year ago, QCOM has less shares outstanding
The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
QCOM has a worse debt/assets ratio than last year.
2.2 Solvency
QCOM has an Altman-Z score of 6.34. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of QCOM (6.34) is better than 65.18% of its industry peers.
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.
The Debt to FCF ratio of QCOM (1.16) is better than 74.11% of its industry peers.
QCOM has a Debt/Equity ratio of 0.70. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, QCOM is doing worse than 75.00% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.34 |
ROIC/WACC2.05
WACC10.43%
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.
Looking at the Current ratio, with a value of 2.82, QCOM is in line with its industry, outperforming 48.21% of the companies in the same industry.
QCOM has a Quick Ratio of 2.10. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.10, QCOM perfoms like the industry average, outperforming 50.89% of the companies in the same industry.
| 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
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, QCOM will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y3.17%
EPS Next 5Y8.23%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.49%
Revenue Next 5Y5.59%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.73, the valuation of QCOM can be described as correct.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. QCOM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.40, QCOM is valued correctly.
92.86% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 86.61% of the companies listed in the same industry.
QCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 12.64 |
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 excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)5.59
PEG (5Y)0.58
EPS Next 2Y3.21%
EPS Next 3Y3.17%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.33. QCOM pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
On average, the dividend of QCOM grows each year by 6.56%, which is quite nice.
QCOM has paid a dividend for at least 10 years, which is 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
68.67% of the earnings are spent on dividend by QCOM. 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 2Y3.21%
EPS Next 3Y3.17%
165.14
+1.84 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-5.74%
Ins Owners0.05%
Ins Owner Change-1.06%
Market Cap176.86B
Revenue(TTM)44.28B
Net Income(TTM)5.54B
Analysts73.62
Price Target194.68 (17.89%)
Short Float %2.27%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP68.67%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.16%
Min EPS beat(2)0.05%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)3.54%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.44%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)12
Avg EPS beat(16)3.17%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)2.38%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)4.69%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)4
Avg Revenue beat(12)0.05%
Revenue beat(16)6
Avg Revenue beat(16)0.09%
PT rev (1m)7.15%
PT rev (3m)7.69%
EPS NQ rev (1m)3.19%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)5.2%
Revenue NQ rev (3m)5.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.4 | ||
| P/S | 3.99 | ||
| P/FCF | 13.8 | ||
| P/OCF | 12.62 | ||
| P/B | 8.34 | ||
| P/tB | 20.33 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)12.03
EY7.28%
EPS(NY)12.33
Fwd EY7.46%
FCF(TTM)11.97
FCFY7.25%
OCF(TTM)13.08
OCFY7.92%
SpS41.35
BVpS19.8
TBVpS8.12
PEG (NY)5.59
PEG (5Y)0.58
Graham Number73.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROCE | 30.23% | ||
| ROIC | 21.4% | ||
| ROICexc | 28.44% | ||
| ROICexgc | 47.84% | ||
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% | ||
| FCFM | 28.95% |
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
ROICexc(3y)23.98%
ROICexc(5y)29.07%
ROICexgc(3y)39.79%
ROICexgc(5y)50.96%
ROCE(3y)24.69%
ROCE(5y)29.47%
ROICexgc growth 3Y-4.83%
ROICexgc growth 5Y4.68%
ROICexc growth 3Y-5.32%
ROICexc growth 5Y8.03%
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%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 74.41% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.11% | ||
| Profit Quality | 231.37% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 6.34 |
F-Score6
WACC10.43%
ROIC/WACC2.05
Cap/Depr(3y)71.86%
Cap/Depr(5y)92.66%
Cap/Sales(3y)3.14%
Cap/Sales(5y)4.03%
Profit Quality(3y)159.2%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
EPS Next Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y3.17%
EPS Next 5Y8.23%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.49%
Revenue Next 5Y5.59%
EBIT growth 1Y20.88%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year7.17%
EBIT Next 3Y4.43%
EBIT Next 5YN/A
FCF growth 1Y14.86%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y14.83%
OCF growth 3Y15.49%
OCF growth 5Y19.24%
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 of QUALCOMM INC (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.
What is the expected EPS growth for QUALCOMM INC (QCOM) stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 2.46% in the next year.
Is the dividend of QUALCOMM INC sustainable?
The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 68.67%.