153.04 USD
-1.48 (-0.96%)
151.458 USD
-1.58 (-1.03%)
Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 113 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 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
- 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.
- Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
- QCOM's Return On Assets of 11.05% is amongst the best of the industry. QCOM outperforms 81.42% of its industry peers.
- The Return On Equity of QCOM (26.13%) is better than 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.
- Measured over the past 3 years, the Average Return On Invested Capital for QCOM is significantly above the industry average of 10.78%.
- 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 better Profit Margin (12.51%) than 69.03% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 27.99%, QCOM belongs to the best of the industry, outperforming 87.61% of the companies in the same industry.
- 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.
- 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 | 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.
- QCOM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, QCOM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.10 indicates that QCOM is not in any danger for bankruptcy at the moment.
- QCOM has a Altman-Z score (6.10) which is in line with 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.
- 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.
- 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.1 |
ROIC/WACC2
WACC10.69%
2.3 Liquidity
- A Current Ratio of 2.82 indicates that QCOM has no problem at all paying 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.
- QCOM has a Quick ratio (2.10) which 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.
- The Revenue has grown by 13.66% in the past year. This is quite good.
- 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
- 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.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 12.72, the valuation of QCOM can be described as correct.
- Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 96.46% of the companies are valued more expensively.
- QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 12.40, the valuation of QCOM can be described as correct.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 94.69% of the companies are valued more expensively.
- QCOM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 91.15% of the companies are valued more expensively.
- QCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| 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)4.95
PEG (5Y)0.54
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.
- Compared to an average industry Dividend Yield of 0.49, QCOM pays a better dividend. On top of this QCOM pays more dividend than 92.92% of the companies listed 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
- On average, the dividend of QCOM grows each year by 6.56%, which is quite nice.
- 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 12.72 and the Price/Book (PB) ratio is 7.71.
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.