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. QCOM gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. 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.
- 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's Return On Assets of 11.05% is amongst the best of the industry. QCOM outperforms 81.42% of its industry peers.
- QCOM has a better Return On Equity (26.13%) than 90.27% of its industry peers.
- QCOM has a better Return On Invested Capital (21.40%) than 94.69% of its industry peers.
- QCOM had an Average Return On Invested Capital over the past 3 years of 17.48%. This is significantly above the industry average of 10.75%.
- The last Return On Invested Capital (21.40%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| 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.
- QCOM's Profit Margin has declined in the last couple of years.
- QCOM's Operating Margin of 27.99% is amongst the best of the industry. QCOM outperforms 87.61% of its industry peers.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- The Gross Margin of QCOM (55.43%) is better than 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
- 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 has been reduced compared to 1 year ago.
- The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
- The debt/assets ratio for QCOM is higher compared to a year ago.
2.2 Solvency
- QCOM has an Altman-Z score of 6.17. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of QCOM (6.17) is comparable to the rest of the 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.
- Looking at the Debt to FCF ratio, with a value of 1.16, QCOM is in the better half of the industry, outperforming 73.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.70 indicates that QCOM is somewhat dependend on debt financing.
- QCOM has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: QCOM underperforms 75.22% 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.17 |
ROIC/WACC2.01
WACC10.63%
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.
- QCOM has a Current ratio of 2.82. This is comparable to the rest of the industry: QCOM outperforms 48.67% of its industry peers.
- A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
- QCOM's Quick ratio of 2.10 is in line compared to the rest of the industry. QCOM outperforms 49.56% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 23.54% on average over the past years. This is a very strong growth
- QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.66%.
- 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
- The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
- 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 Year4.29%
Revenue Next 2Y2.74%
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
- The Price/Earnings ratio is 12.95, which 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.
- When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (27.21), we can say QCOM is valued rather cheaply.
- QCOM is valuated correctly with a Price/Forward Earnings ratio of 12.63.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 95.58% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (24.26), we can say QCOM is valued slightly cheaper.
| 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 90.27% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 94.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 12.05 |
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
- QCOM has a Yearly Dividend Yield of 2.21%.
- Compared to an average industry Dividend Yield of 0.51, 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 1.82, QCOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 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
- 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 12.95 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.