QUALCOMM INC (QCOM) Fundamental Analysis & Valuation
NASDAQ:QCOM • US7475251036
137 USD
-2.51 (-1.8%)
At close: Mar 5, 2026
137.18 USD
+0.18 (+0.13%)
After Hours: 3/5/2026, 7:09:07 PM
This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, QCOM scores 7 out of 10 in our fundamental rating. QCOM was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent on profitability, but there are some minor concerns on its financial health. QCOM is valued quite cheap, while showing a decent growth score. This is a good combination! Finally QCOM also has an excellent dividend rating. This makes QCOM very considerable for value and dividend investing!
1. QCOM Profitability Analysis
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
- With an excellent Return On Assets value of 10.12%, QCOM belongs to the best of the industry, outperforming 80.87% of the companies in the same industry.
- QCOM's Return On Equity of 23.25% is amongst the best of the industry. QCOM outperforms 89.57% of its industry peers.
- QCOM has a Return On Invested Capital of 19.99%. This is amongst the best in the industry. QCOM outperforms 93.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.50%.
- The 3 year average ROIC (17.48%) for QCOM is below the current ROIC(19.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.25% | ||
| ROIC | 19.99% |
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 (11.96%) than 67.83% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 27.20%, QCOM belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
- QCOM's Operating Margin has improved in the last couple of years.
- The Gross Margin of QCOM (55.10%) is better than 73.04% 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 | 27.2% | ||
| PM (TTM) | 11.96% | ||
| GM | 55.1% |
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. QCOM Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QCOM is creating value.
- Compared to 1 year ago, QCOM has less shares outstanding
- The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
- QCOM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.51 indicates that QCOM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of QCOM (5.51) is comparable to the rest of the industry.
- QCOM has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
- QCOM has a Debt to FCF ratio of 1.15. This is in the better half of the industry: QCOM outperforms 71.30% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that QCOM is somewhat dependend on debt financing.
- QCOM has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: QCOM underperforms 73.91% 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 | 0.64 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.51 |
ROIC/WACC1.83
WACC10.9%
2.3 Liquidity
- A Current Ratio of 2.51 indicates that QCOM has no problem at all paying its short term obligations.
- QCOM has a Current ratio of 2.51. This is comparable to the rest of the industry: QCOM outperforms 40.87% of its industry peers.
- A Quick Ratio of 1.83 indicates that QCOM should not have too much problems paying its short term obligations.
- QCOM's Quick ratio of 1.83 is on the low side compared to the rest of the industry. QCOM is outperformed by 62.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.83 |
3. QCOM Growth Analysis
3.1 Past
- QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, 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.
- The Revenue has grown by 10.25% in the past year. This is quite good.
- 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)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
3.2 Future
- QCOM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.18% yearly.
- Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue Next Year0.38%
Revenue Next 2Y0.57%
Revenue Next 3Y2.67%
Revenue Next 5Y5.35%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. QCOM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.30, the valuation of QCOM can be described as very reasonable.
- Based on the Price/Earnings ratio, QCOM is valued cheaper than 97.39% of the companies in the same industry.
- When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (26.74), we can say QCOM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.96, the valuation of QCOM can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 94.78% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.82. QCOM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.96 |
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 92.17% of the companies listed in the same industry.
- QCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QCOM is cheaper than 96.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.93
PEG (5Y)0.48
EPS Next 2Y1.91%
EPS Next 3Y3.11%
5. QCOM Dividend Analysis
5.1 Amount
- QCOM has a Yearly Dividend Yield of 2.45%.
- The stock price of QCOM dropped by -21.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- QCOM's Dividend Yield is rather good when compared to the industry average which is at 0.47. QCOM pays more dividend than 94.78% 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 | 2.45% |
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 71.05% of its income as dividend. This is not a sustainable payout ratio.
- QCOM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP71.05%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
QCOM Fundamentals: All Metrics, Ratios and Statistics
137
-2.51 (-1.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners81.85%
Inst Owner Change-0.5%
Ins Owners0.05%
Ins Owner Change-0.31%
Market Cap146.18B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts72.89
Price Target168.85 (23.25%)
Short Float %3.3%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP71.05%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-05 2026-03-05 (0.89)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.57%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.96%
Max EPS beat(4)2.27%
EPS beat(8)7
Avg EPS beat(8)2.79%
EPS beat(12)10
Avg EPS beat(12)3.29%
EPS beat(16)12
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)2.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)2.38%
Revenue beat(8)3
Avg Revenue beat(8)0.38%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)5
Avg Revenue beat(16)-0.05%
PT rev (1m)-13.39%
PT rev (3m)-13.27%
EPS NQ rev (1m)-11.97%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-5.25%
Revenue NQ rev (3m)-5.42%
Revenue NY rev (1m)-3.49%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.96 | ||
| P/S | 3.26 | ||
| P/FCF | 11.31 | ||
| P/OCF | 10.16 | ||
| P/B | 6.34 | ||
| P/tB | 20.13 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)12.12
EY8.85%
EPS(NY)12.49
Fwd EY9.12%
FCF(TTM)12.11
FCFY8.84%
OCF(TTM)13.49
OCFY9.84%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)6.93
PEG (5Y)0.48
Graham Number76.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.25% | ||
| ROCE | 28.24% | ||
| ROIC | 19.99% | ||
| ROICexc | 27.52% | ||
| ROICexgc | 55.45% | ||
| OM | 27.2% | ||
| PM (TTM) | 11.96% | ||
| GM | 55.1% | ||
| FCFM | 28.81% |
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
ROICexc(3y)23.98%
ROICexc(5y)29.07%
ROICexgc(3y)39.79%
ROICexgc(5y)50.96%
ROCE(3y)24.69%
ROCE(5y)29.47%
ROICexgc growth 3Y-4.83%
ROICexgc growth 5Y4.68%
ROICexc growth 3Y-5.32%
ROICexc growth 5Y8.03%
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%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 93.91% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.55% | ||
| Profit Quality | 240.93% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 5.51 |
F-Score5
WACC10.9%
ROIC/WACC1.83
Cap/Depr(3y)71.86%
Cap/Depr(5y)92.66%
Cap/Sales(3y)3.14%
Cap/Sales(5y)4.03%
Profit Quality(3y)159.2%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
EPS Next Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
Revenue Next Year0.38%
Revenue Next 2Y0.57%
Revenue Next 3Y2.67%
Revenue Next 5Y5.35%
EBIT growth 1Y11.89%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year0.78%
EBIT Next 3Y0.95%
EBIT Next 5YN/A
FCF growth 1Y30.74%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y29.02%
OCF growth 3Y15.49%
OCF growth 5Y19.24%
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 8 / 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 11.3 and the Price/Book (PB) ratio is 6.34.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 1.63% in the next year.