154.9 USD
+0.38 (+0.25%)
QCOM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. QCOM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 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
- In the past year QCOM was profitable.
- QCOM had a positive operating cash flow in the past year.
- In the past 5 years QCOM has always been profitable.
- In the past 5 years QCOM always reported a positive cash flow from operatings.
1.2 Ratios
- QCOM has a better Return On Assets (11.05%) than 81.42% of its industry peers.
- QCOM's Return On Equity of 26.13% is amongst the best of the industry. QCOM outperforms 90.27% of its industry peers.
- QCOM has a Return On Invested Capital of 21.40%. This is amongst the best in the industry. QCOM outperforms 93.81% 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
- With a decent Profit Margin value of 12.51%, QCOM is doing good in the industry, outperforming 69.03% of the companies in the same industry.
- 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.
- QCOM's Operating Margin has improved in the last couple of years.
- 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.
- QCOM has less 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 a worse debt to assets ratio.
2.2 Solvency
- QCOM has an Altman-Z score of 6.10. 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 6.10, QCOM is in line with its industry, outperforming 59.29% of the companies in the same 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.
- QCOM has a Debt to FCF ratio of 1.16. This is in the better half 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.
- With a Debt to Equity ratio value of 0.70, QCOM is not doing good in the industry: 75.22% of the companies in the same industry are doing better.
- 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 | 6.1 |
ROIC/WACC2
WACC10.71%
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.
- With a Current ratio value of 2.82, QCOM perfoms like the industry average, outperforming 48.67% of the companies in the same industry.
- A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
- With a Quick ratio value of 2.10, QCOM perfoms like the industry average, outperforming 49.56% 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.
- Measured over the past years, QCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.54% on average per year.
- Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
- QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.30% yearly.
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.
- The Revenue is expected to grow by 4.71% on average over the next years.
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
- A Price/Earnings ratio of 12.88 indicates a correct valuation of QCOM.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, QCOM is valued rather cheaply.
- The Price/Forward Earnings ratio is 12.55, which indicates a correct valuation of QCOM.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 94.69% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (25.98), we can say QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 12.55 |
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 94.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 11.8 |
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)5.01
PEG (5Y)0.55
EPS Next 2Y2.44%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- QCOM has a Yearly Dividend Yield of 2.26%. 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 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- 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 12.88 and the Price/Book (PB) ratio is 7.81.
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.