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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
QCOM has a Return On Assets of 18.39%. This is amongst the best in the industry. QCOM outperforms 91.67% 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.
With an excellent Return On Invested Capital value of 18.14%, QCOM belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
QCOM had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 11.05%.
| 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.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM's Operating Margin of 26.32% is amongst the best of the industry. QCOM outperforms 85.19% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
The Gross Margin of QCOM (56.22%) is better than 76.85% of its industry peers.
QCOM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QCOM is creating some value.
QCOM has about the same amout of shares outstanding than it did 1 year ago.
QCOM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for QCOM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.85 indicates that QCOM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.85, QCOM is in the better half of the industry, outperforming 67.59% 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.
A Debt/Equity ratio of 0.51 indicates that QCOM is somewhat dependend on debt financing.
QCOM has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: QCOM underperforms 75.00% 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 | 0.51 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.25
WACC14.49%
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's Current ratio of 2.40 is on the low side compared to the rest of the industry. QCOM is outperformed by 62.04% of its industry peers.
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 (1.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.40% over the past year.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 8.77% in the last year.
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
QCOM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.68% yearly.
The Revenue is expected to grow by 6.51% on average over the next years.
EPS Next Y12.41%
EPS Next 2Y10.77%
EPS Next 3Y8.31%
EPS Next 5Y7.68%
Revenue Next Year10.17%
Revenue Next 2Y8.61%
Revenue Next 3Y6.51%
Revenue Next 5YN/A
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.
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 15.31, the valuation of QCOM can be described as correct.
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.
QCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
QCOM is valuated correctly with a Price/Forward Earnings ratio of 13.62.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
QCOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QCOM indicates a somewhat cheap valuation: QCOM is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 13.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)0.65
EPS Next 2Y10.77%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.37, QCOM pays a better dividend. On top of this QCOM pays more dividend than 90.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.69%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
QCOM pays out 36.35% of its income as dividend. This is a sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.35%
EPS Next 2Y10.77%
EPS Next 3Y8.31%
QUALCOMM INC
NASDAQ:QCOM (11/21/2024, 2:50:10 PM)
156.271
+2 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap173.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.23
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 38.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.32% | ||
| PM (TTM) | 26.03% | ||
| GM | 56.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.4%
EPS 3Y6.13%
EPS 5Y
EPS Q2Q%
EPS Next Y12.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.77%
Revenue growth 3Y5.09%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y