QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
Taking everything into account, QCOM scores 8 out of 10 in our fundamental rating. QCOM was compared to 110 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. 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.
In the past year QCOM had a positive cash flow from operations.
QCOM had positive earnings in each of the past 5 years.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QCOM (19.94%) is better than 92.73% of its industry peers.
QCOM has a better Return On Equity (39.82%) than 93.64% of its industry peers.
QCOM has a Return On Invested Capital of 20.15%. This is amongst the best in the industry. QCOM outperforms 92.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROIC | 20.15% |
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
The Profit Margin of QCOM (26.11%) is better than 86.36% of its industry peers.
QCOM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 27.64%, QCOM belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
QCOM's Operating Margin has improved in the last couple of years.
QCOM has a Gross Margin of 55.68%. This is in the better half of the industry: QCOM outperforms 76.36% 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 | 27.64% | ||
| PM (TTM) | 26.11% | ||
| GM | 55.68% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QCOM is creating value.
The number of shares outstanding for QCOM remains at a similar level compared to 1 year ago.
QCOM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, QCOM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.27 indicates that QCOM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.27, QCOM is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
The Debt to FCF ratio of QCOM is 1.25, which is an excellent value as it means it would take QCOM, only 1.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of QCOM (1.25) is better than 73.64% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that QCOM is not too dependend on debt financing.
QCOM's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. QCOM is outperformed by 72.73% 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 | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 6.27 |
ROIC/WACC1.77
WACC11.38%
2.3 Liquidity
QCOM has a Current Ratio of 2.73. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM has a Current ratio (2.73) which is in line with its industry peers.
A Quick Ratio of 2.08 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Quick ratio (2.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.23%, 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 16.15% in the past year. This is quite good.
The Revenue has been growing by 14.76% on average over the past years. This is quite good.
EPS 1Y (TTM)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
3.2 Future
QCOM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.17% yearly.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 4.90% on average per year.
EPS Next Y17.55%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
EPS Next 5Y7.17%
Revenue Next Year12.54%
Revenue Next 2Y6.89%
Revenue Next 3Y5.4%
Revenue Next 5Y4.9%
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
With a Price/Earnings ratio of 13.96, QCOM is valued correctly.
Based on the Price/Earnings ratio, QCOM is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, QCOM is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.90 indicates a correct valuation of QCOM.
91.82% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. QCOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaper than 84.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 93.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)0.8
PEG (5Y)0.59
EPS Next 2Y9.33%
EPS Next 3Y6.71%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.19%.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.18. QCOM pays more dividend than 89.09% of the companies in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
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)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
QCOM pays out 34.21% 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.
DP34.21%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
157.46
-1.63 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change0.01%
Ins Owners0.05%
Ins Owner Change-1.24%
Market Cap171.45B
Analysts73.33
Price Target179.71 (14.13%)
Short Float %2.13%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP34.21%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-0.96%
Max EPS beat(2)12.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.81%
EPS beat(12)8
Avg EPS beat(12)2.93%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)1.41%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.44%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)-2.29%
PT rev (3m)-12.39%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.9 | ||
| P/S | 4.05 | ||
| P/FCF | 14.65 | ||
| P/OCF | 13.35 | ||
| P/B | 6.18 | ||
| P/tB | 10.99 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)11.28
EY7.16%
EPS(NY)12.2
Fwd EY7.75%
FCF(TTM)10.75
FCFY6.83%
OCF(TTM)11.79
OCFY7.49%
SpS38.84
BVpS25.47
TBVpS14.32
PEG (NY)0.8
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 39.82% | ||
| ROCE | 25.5% | ||
| ROIC | 20.15% | ||
| ROICexc | 28.87% | ||
| ROICexgc | 46.51% | ||
| OM | 27.64% | ||
| PM (TTM) | 26.11% | ||
| GM | 55.68% | ||
| FCFM | 27.68% |
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-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 67.06% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.97% | ||
| Profit Quality | 106.02% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 6.27 |
F-Score8
WACC11.38%
ROIC/WACC1.77
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)24.23%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%16.8%
EPS Next Y17.55%
EPS Next 2Y9.33%
EPS Next 3Y6.71%
EPS Next 5Y7.17%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%15.45%
Revenue Next Year12.54%
Revenue Next 2Y6.89%
Revenue Next 3Y5.4%
Revenue Next 5Y4.9%
EBIT growth 1Y29.19%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year27.47%
EBIT Next 3Y7.62%
EBIT Next 5Y8.2%
FCF growth 1Y70.79%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y44.38%
OCF growth 3Y5.02%
OCF growth 5Y10.86%