QUALCOMM INC (QCOM) Fundamental Analysis & Valuation
NASDAQ:QCOM • US7475251036
133.25 USD
-0.87 (-0.65%)
Last: Mar 12, 2026, 11:05 AM
This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM has an excellent profitability rating, but there are some minor concerns on its financial health. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth 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
- In the past year QCOM was profitable.
- In the past year QCOM had a positive cash flow from operations.
- 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.
1.2 Ratios
- QCOM's Return On Assets of 10.12% is amongst the best of the industry. QCOM outperforms 80.87% of its industry peers.
- QCOM has a Return On Equity of 23.25%. This is amongst the best in the industry. QCOM outperforms 89.57% of its industry peers.
- With an excellent Return On Invested Capital value of 19.99%, QCOM belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.52%.
- The last Return On Invested Capital (19.99%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 11.96%, QCOM is doing good in the industry, outperforming 67.83% of the companies in the same industry.
- 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 85.22% of the companies in the same industry.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- QCOM's Gross Margin of 55.10% is fine compared to the rest of the industry. QCOM outperforms 73.04% of its industry peers.
- QCOM's Gross Margin has been stable in the last couple of years.
| 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 just above the Cost of Capital (WACC), so QCOM is still creating some value.
- Compared to 1 year ago, QCOM has less shares outstanding
- QCOM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, QCOM has a worse debt to assets ratio.
2.2 Solvency
- QCOM has an Altman-Z score of 5.40. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- QCOM has a Altman-Z score of 5.40. This is comparable to the rest of the industry: QCOM outperforms 57.39% of its industry peers.
- 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's Debt to FCF ratio of 1.15 is fine compared to the rest of the industry. QCOM outperforms 72.17% of its industry peers.
- QCOM has a Debt/Equity ratio of 0.64. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, QCOM is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
- 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 | 5.4 |
ROIC/WACC1.8
WACC11.11%
2.3 Liquidity
- A Current Ratio of 2.51 indicates that QCOM has no problem at all paying its short term obligations.
- The Current ratio of QCOM (2.51) is comparable to the rest of the industry.
- QCOM has a Quick Ratio of 1.83. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting 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
- The Earnings Per Share has grown by an nice 11.50% 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.
- 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
- Based on estimates for the next years, QCOM will show a small growth in Earnings Per Share. The EPS will grow by 7.18% on average per year.
- The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue Next Year0.5%
Revenue Next 2Y0.63%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%
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. QCOM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.99, 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.
- Compared to an average S&P500 Price/Earnings ratio of 26.15, QCOM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.65, 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.27. QCOM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
- QCOM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.04% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 97.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
- The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
5. QCOM Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.62%, QCOM has a reasonable but not impressive dividend return.
- The stock price of QCOM dropped by -24.77% 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.
- Compared to an average industry Dividend Yield of 0.49, QCOM pays a better dividend. On top of this QCOM pays more dividend than 93.91% of the companies listed 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 | 2.62% |
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
- QCOM pays out 71.05% of its income as dividend. 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 Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:QCOM (3/12/2026, 11:05:09 AM)
133.25
-0.87 (-0.65%)
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 Owners81.48%
Inst Owner Change-0.46%
Ins Owners0.05%
Ins Owner Change0.09%
Market Cap142.18B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts71.3
Price Target168.85 (26.72%)
Short Float %3.3%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)-11.46%
PT rev (3m)-13.16%
EPS NQ rev (1m)-11.97%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)-5.25%
Revenue NQ rev (3m)-5.42%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 11.65 | ||
| P/S | 3.17 | ||
| P/FCF | 11 | ||
| P/OCF | 9.88 | ||
| P/B | 6.16 | ||
| P/tB | 19.58 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)12.12
EY9.1%
EPS(NY)11.43
Fwd EY8.58%
FCF(TTM)12.11
FCFY9.09%
OCF(TTM)13.49
OCFY10.12%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)N/A
PEG (5Y)0.47
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 | 5.4 |
F-Score5
WACC11.11%
ROIC/WACC1.8
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 Year0.5%
Revenue Next 2Y0.63%
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 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 10.99 and the Price/Book (PB) ratio is 6.16.
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.