QUALCOMM INC (QCOM)
US7475251036 - Common Stock
QCOM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 108 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 valued quite cheap, while showing a decent growth score. This is a good combination! QCOM also has an excellent dividend rating. This makes QCOM very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
QCOM had positive earnings in the past year.
In the past year QCOM had a positive cash flow from operations.
Each year in the past 5 years QCOM has been profitable.
QCOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QCOM has a better Return On Assets (18.39%) than 92.59% of its industry peers.
QCOM's Return On Equity of 38.60% is amongst the best of the industry. QCOM outperforms 94.44% of its industry peers.
The Return On Invested Capital of QCOM (18.14%) is better than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 38.6% | ||
| ROIC | 18.14% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
1.3 Margins
QCOM's Profit Margin of 26.03% is amongst the best of the industry. QCOM outperforms 87.04% of its industry peers.
QCOM's Profit Margin has improved in the last couple of years.
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.
QCOM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.22%, QCOM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of QCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.32% | ||
| PM (TTM) | 26.03% | ||
| GM | 56.22% |
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
QCOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
QCOM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
Compared to 1 year ago, QCOM has an improved debt to assets ratio.
2.2 Solvency
QCOM has an Altman-Z score of 5.92. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.92, QCOM is in the better half of the industry, outperforming 61.11% 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.
QCOM's Debt to FCF ratio of 1.31 is fine compared to the rest of the industry. QCOM outperforms 76.85% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that QCOM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, QCOM is doing worse than 75.00% of the companies in the same industry.
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 | 0.51 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.29
WACC14.06%
2.3 Liquidity
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.
QCOM has a Current ratio (2.40) which is comparable to the rest of the industry.
QCOM has a Quick Ratio of 1.79. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting its short term obligations.
QCOM has a Quick ratio of 1.79. This is comparable to the rest of the industry: QCOM outperforms 42.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.40%, which is quite impressive.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
The Revenue has grown by 8.77% in the past year. This is quite good.
QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
EPS 1Y (TTM)21.4%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%33.17%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%18.22%
3.2 Future
Based on estimates for the next years, QCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.61% on average per year.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y11.87%
EPS Next 2Y10.18%
EPS Next 3Y5.94%
EPS Next 5Y10.61%
Revenue Next Year9.68%
Revenue Next 2Y8.09%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 15.11 indicates a correct valuation of QCOM.
Based on the Price/Earnings ratio, QCOM is valued cheaper than 88.89% of the companies in the same industry.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.35.
With a Price/Forward Earnings ratio of 13.50, QCOM is valued correctly.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (23.86), we can say QCOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
QCOM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. QCOM is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 93.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)0.64
EPS Next 2Y10.18%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.14%. 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 2.23. QCOM pays more dividend than 90.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
QCOM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
QCOM pays out 36.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.35%
EPS Next 2Y10.18%
EPS Next 3Y5.94%
QUALCOMM INC
NASDAQ:QCOM (12/30/2024, 10:28:09 AM)
154.245
-3 (-1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.77%
Inst Owner Change-0.82%
Ins Owners0.07%
Ins Owner Change5.6%
Market Cap171.37B
Analysts75.83
Price Target208.11 (34.92%)
Short Float %2.13%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Dividend Growth(5Y)5.69%
DP36.35%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.29%
Min EPS beat(2)1.54%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)5.34%
Min EPS beat(4)1.54%
Max EPS beat(4)13.74%
EPS beat(8)6
Avg EPS beat(8)3%
EPS beat(12)9
Avg EPS beat(12)3.05%
EPS beat(16)13
Avg EPS beat(16)4.51%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)2.21%
Revenue beat(8)2
Avg Revenue beat(8)-0.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)0.24%
PT rev (1m)-1.68%
PT rev (3m)-4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.76%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.5 | ||
| P/S | 4.4 | ||
| P/FCF | 15.35 | ||
| P/OCF | 14.04 | ||
| P/B | 6.52 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)10.21
EY6.62%
EPS(NY)11.42
Fwd EY7.4%
FCF(TTM)10.05
FCFY6.51%
OCF(TTM)10.98
OCFY7.12%
SpS35.07
BVpS23.65
TBVpS12.81
PEG (NY)1.27
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 38.6% | ||
| ROCE | 22.96% | ||
| ROIC | 18.14% | ||
| ROICexc | 25.84% | ||
| ROICexgc | 41.95% | ||
| OM | 26.32% | ||
| PM (TTM) | 26.03% | ||
| GM | 56.22% | ||
| FCFM | 28.65% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
ROICexc(3y)28.65%
ROICexc(5y)30.41%
ROICexgc(3y)47.26%
ROICexgc(5y)54.69%
ROCE(3y)27.9%
ROCE(5y)26.71%
ROICexcg growth 3Y-22.23%
ROICexcg growth 5Y-9.77%
ROICexc growth 3Y-16.58%
ROICexc growth 5Y3.47%
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
F-Score9
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 61.02% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.03% | ||
| Profit Quality | 110.05% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 5.92 |
F-Score9
WACC14.06%
ROIC/WACC1.29
Cap/Depr(3y)89.85%
Cap/Depr(5y)97.98%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.79%
Profit Quality(3y)99.69%
Profit Quality(5y)95.9%
High Growth Momentum
Growth
EPS 1Y (TTM)21.4%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%33.17%
EPS Next Y11.87%
EPS Next 2Y10.18%
EPS Next 3Y5.94%
EPS Next 5Y10.61%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%18.22%
Revenue Next Year9.68%
Revenue Next 2Y8.09%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
EBIT growth 1Y18.53%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year20.87%
EBIT Next 3Y8.51%
EBIT Next 5YN/A
FCF growth 1Y13.32%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y7.99%
OCF growth 3Y5.02%
OCF growth 5Y10.86%