155.82 USD
-1.98 (-1.25%)
155.51 USD
-0.31 (-0.2%)
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. 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. These ratings would make QCOM suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
- QCOM had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 11.05%, QCOM belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
- QCOM has a Return On Equity of 26.13%. This is amongst the best in the industry. QCOM outperforms 90.27% of its industry peers.
- QCOM has a better Return On Invested Capital (21.40%) than 94.69% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.75%.
- The 3 year average ROIC (17.48%) for QCOM 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
- QCOM has a Profit Margin of 12.51%. This is in the better half of the industry: QCOM outperforms 69.03% of its industry peers.
- In the last couple of years the Profit Margin of QCOM has declined.
- QCOM has a Operating Margin of 27.99%. This is amongst the best in the industry. QCOM outperforms 87.61% of its industry peers.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- QCOM's Gross Margin of 55.43% is fine compared to the rest of the industry. QCOM outperforms 76.11% of its industry peers.
- 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
- QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, QCOM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.13 indicates that QCOM is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 6.13, QCOM is doing good in the industry, outperforming 60.18% of the companies in the same industry.
- QCOM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
- QCOM's Debt to FCF ratio of 1.16 is fine compared to the rest of the industry. QCOM outperforms 73.45% of its industry peers.
- A Debt/Equity ratio of 0.70 indicates that QCOM is somewhat dependend on debt financing.
- QCOM has a worse Debt to Equity ratio (0.70) than 75.22% of its industry peers.
- 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 | 6.13 |
ROIC/WACC2.02
WACC10.61%
2.3 Liquidity
- A Current Ratio of 2.82 indicates that QCOM has no problem at all paying its short term obligations.
- The Current ratio of QCOM (2.82) is comparable to the rest of the industry.
- A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
- The Quick ratio of QCOM (2.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.83% over the past year.
- QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.54% yearly.
- QCOM 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, 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
- 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 12.95, 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 96.46% of the companies listed in the same industry.
- QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- QCOM is valuated correctly with a Price/Forward Earnings ratio of 12.63.
- 94.69% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
- QCOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 12.63 |
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 91.15% of the companies listed 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 94.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 11.9 |
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)5.04
PEG (5Y)0.55
EPS Next 2Y2.44%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.26%, QCOM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.50, QCOM pays a better dividend. On top of this QCOM pays more dividend than 92.92% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, QCOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
- QCOM pays out 68.67% of its income as dividend. This is not a sustainable payout ratio.
- QCOM's earnings are growing more than its dividend. This makes the dividend growth 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 12.95 and the Price/Book (PB) ratio is 7.85.
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.