QUALCOMM INC (QCOM) Fundamental Analysis & Valuation

NASDAQ:QCOM • US7475251036

Current stock price

127.11 USD
-3.43 (-2.63%)
At close:
128.1 USD
+0.99 (+0.78%)
Pre-Market:

This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. QCOM Profitability Analysis

1.1 Basic Checks

  • In the past year QCOM was profitable.
  • QCOM had a positive operating cash flow in the past year.
  • QCOM had positive earnings in each of the past 5 years.
  • QCOM had a positive operating cash flow in each of the past 5 years.
QCOM Yearly Net Income VS EBIT VS OCF VS FCFQCOM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • QCOM has a Return On Assets of 10.12%. This is amongst the best in the industry. QCOM outperforms 80.87% of its industry peers.
  • QCOM has a better Return On Equity (23.25%) than 89.57% of its industry peers.
  • QCOM has a better Return On Invested Capital (19.99%) than 93.04% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.70%.
  • The 3 year average ROIC (17.48%) for QCOM is below the current ROIC(19.99%), indicating increased profibility in the last year.
Industry RankSector 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%
QCOM Yearly ROA, ROE, ROICQCOM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600

1.3 Margins

  • QCOM's Profit Margin of 11.96% is fine compared to the rest of the industry. QCOM outperforms 68.70% of its industry peers.
  • QCOM's Profit Margin has declined in the last couple of years.
  • QCOM's Operating Margin of 27.20% is amongst the best of the industry. QCOM outperforms 85.22% of its industry peers.
  • QCOM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 55.10%, QCOM is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • QCOM's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
QCOM Yearly Profit, Operating, Gross MarginsQCOM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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6

2. QCOM Health Analysis

2.1 Basic Checks

  • QCOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, QCOM has less shares outstanding
  • Compared to 5 years ago, QCOM has less shares outstanding
  • The debt/assets ratio for QCOM is higher compared to a year ago.
QCOM Yearly Shares OutstandingQCOM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
QCOM Yearly Total Debt VS Total AssetsQCOM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 5.25 indicates that QCOM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.25, QCOM is in line with its industry, outperforming 56.52% of the companies in the same industry.
  • The Debt to FCF ratio of QCOM is 1.15, which is an excellent value as it means it would take QCOM, only 1.15 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.15, QCOM is in the better half of the industry, outperforming 72.17% of the companies in the same industry.
  • 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 73.04% 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 RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.15
Altman-Z 5.25
ROIC/WACC1.76
WACC11.35%
QCOM Yearly LT Debt VS Equity VS FCFQCOM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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 worse Current ratio (2.51) than 60.00% 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 has a worse Quick ratio (1.83) than 63.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 1.83
QCOM Yearly Current Assets VS Current LiabilitesQCOM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.25%.
  • The Revenue has been growing by 15.30% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 7.18% on average over the next years.
  • Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.97% on average per year.
EPS Next Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue Next Year0.28%
Revenue Next 2Y0.48%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%

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.
  • 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.
QCOM Yearly Revenue VS EstimatesQCOM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
QCOM Yearly EPS VS EstimatesQCOM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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7

4. QCOM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.49, which indicates a very decent valuation of QCOM.
  • 97.39% of the companies in the same industry are more expensive than QCOM, based on the Price/Earnings ratio.
  • QCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.89.
  • With a Price/Forward Earnings ratio of 11.12, the valuation of QCOM can be described as very reasonable.
  • QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.78% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (22.19), we can say QCOM is valued slightly cheaper.
Industry RankSector Rank
PE 10.49
Fwd PE 11.12
QCOM Price Earnings VS Forward Price EarningsQCOM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 93.04% of the companies in the same industry are more expensive than QCOM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 97.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.49
EV/EBITDA 9.74
QCOM Per share dataQCOM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-2.51%
EPS Next 3Y1.44%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. QCOM Dividend Analysis

5.1 Amount

  • QCOM has a Yearly Dividend Yield of 2.73%.
  • The stock price of QCOM dropped by -27.29% 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 0.50. QCOM pays more dividend than 93.04% of the companies in the same industry.
  • QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.73%

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 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
QCOM Yearly Dividends per shareQCOM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 71.05% of the earnings are spent on dividend by QCOM. This is not a sustainable payout ratio.
  • The dividend of QCOM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP71.05%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
QCOM Yearly Income VS Free CF VS DividendQCOM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B
QCOM Dividend Payout.QCOM Dividend Payout, showing the Payout Ratio.QCOM Dividend Payout.PayoutRetained Earnings

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QCOM Fundamentals: All Metrics, Ratios and Statistics

QUALCOMM INC

NASDAQ:QCOM (3/27/2026, 8:00:01 PM)

Premarket: 128.1 +0.99 (+0.78%)

127.11

-3.43 (-2.63%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners81.48%
Inst Owner Change-0.29%
Ins Owners0.05%
Ins Owner Change4.62%
Market Cap135.63B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts71.3
Price Target165.01 (29.82%)
Short Float %3.53%
Short Ratio3.65
Dividend
Industry RankSector Rank
Dividend Yield 2.73%
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP71.05%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-05
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)-13.47%
PT rev (3m)-15.36%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-12.04%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.99%
Valuation
Industry RankSector Rank
PE 10.49
Fwd PE 11.12
P/S 3.02
P/FCF 10.49
P/OCF 9.43
P/B 5.88
P/tB 18.67
EV/EBITDA 9.74
EPS(TTM)12.12
EY9.54%
EPS(NY)11.43
Fwd EY9%
FCF(TTM)12.11
FCFY9.53%
OCF(TTM)13.49
OCFY10.61%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)N/A
PEG (5Y)0.45
Graham Number76.79
Profitability
Industry RankSector 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 RankSector 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 5.25
F-Score5
WACC11.35%
ROIC/WACC1.76
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 Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
Revenue Next Year0.28%
Revenue Next 2Y0.48%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%
EBIT growth 1Y11.89%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year1.11%
EBIT Next 3Y1.26%
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 Fundamental Analysis 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 10.49 and the Price/Book (PB) ratio is 5.88.


Can you provide the expected EPS growth for QCOM stock?

The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to decline by -5.47% in the next year.