165.14 USD
+1.84 (+1.13%)
165.25 USD
+0.11 (+0.07%)
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate 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 has a better Return On Assets (11.05%) than 83.93% of its industry peers.
QCOM has a Return On Equity of 26.13%. This is amongst the best in the industry. QCOM outperforms 91.96% of its industry peers.
QCOM has a better Return On Invested Capital (21.40%) than 94.64% 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 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 72.32% of its industry peers.
In the last couple of years the Profit Margin of QCOM has declined.
QCOM has a better Operating Margin (27.99%) than 88.39% 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 76.79% 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.
Compared to 5 years ago, QCOM has less shares outstanding
Compared to 1 year ago, QCOM has a worse debt to assets ratio.
2.2 Solvency
QCOM has an Altman-Z score of 6.30. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM has a Altman-Z score of 6.30. This is in the better half of the industry: QCOM outperforms 65.18% of 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.
With a decent Debt to FCF ratio value of 1.16, QCOM is doing good in the industry, outperforming 74.11% of the companies in the same industry.
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: 75.00% 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 | 6.3 |
ROIC/WACC2.05
WACC10.43%
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.
The Current ratio of QCOM (2.82) is comparable to the rest of the 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.
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
Based on estimates for the next years, QCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.59% yearly.
EPS Next Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y3.17%
EPS Next 5Y8.23%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.49%
Revenue Next 5Y5.59%
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
QCOM is valuated correctly with a Price/Earnings ratio of 13.73.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 13.40, QCOM is valued correctly.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 91.96% of the companies in the same industry.
QCOM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 12.5 |
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)5.59
PEG (5Y)0.58
EPS Next 2Y3.21%
EPS Next 3Y3.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.33, QCOM pays a better dividend. On top of this QCOM pays more dividend than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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 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 2Y3.21%
EPS Next 3Y3.17%
165.14
+1.84 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-5.74%
Ins Owners0.05%
Ins Owner Change-1.06%
Market Cap176.86B
Revenue(TTM)44.28B
Net Income(TTM)5.54B
Analysts73.62
Price Target194.68 (17.89%)
Short Float %2.27%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP68.67%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.16%
Min EPS beat(2)0.05%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)3.54%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.44%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)12
Avg EPS beat(16)3.17%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)2.38%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)4.69%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)4
Avg Revenue beat(12)0.05%
Revenue beat(16)6
Avg Revenue beat(16)0.09%
PT rev (1m)7.15%
PT rev (3m)7.69%
EPS NQ rev (1m)3.19%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)5.2%
Revenue NQ rev (3m)5.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 13.4 | ||
| P/S | 3.99 | ||
| P/FCF | 13.8 | ||
| P/OCF | 12.62 | ||
| P/B | 8.34 | ||
| P/tB | 20.33 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)12.03
EY7.28%
EPS(NY)12.33
Fwd EY7.46%
FCF(TTM)11.97
FCFY7.25%
OCF(TTM)13.08
OCFY7.92%
SpS41.35
BVpS19.8
TBVpS8.12
PEG (NY)5.59
PEG (5Y)0.58
Graham Number73.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROCE | 30.23% | ||
| ROIC | 21.4% | ||
| ROICexc | 28.44% | ||
| ROICexgc | 47.84% | ||
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% | ||
| FCFM | 28.95% |
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-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 74.41% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.11% | ||
| Profit Quality | 231.37% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 6.3 |
F-Score6
WACC10.43%
ROIC/WACC2.05
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)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
EPS Next Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y3.17%
EPS Next 5Y8.23%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.49%
Revenue Next 5Y5.59%
EBIT growth 1Y20.88%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year7.17%
EBIT Next 3Y4.43%
EBIT Next 5YN/A
FCF growth 1Y14.86%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y14.83%
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 of QUALCOMM INC (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.
What is the expected EPS growth for QUALCOMM INC (QCOM) stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 2.46% in the next year.
Is the dividend of QUALCOMM INC sustainable?
The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 68.67%.